Commercialization

AAA

DEFINITION of 'Commercialization'

The process by which a new product or service is introduced into the general market. Commercialization is broken into phases, from the initial introduction of the product through its mass production and adoption. It takes into account the production, distribution, marketing, sales and customer support required to achieve commercial success. As a strategy, commercialization requires that a business develop a marketing plan, determine how the product will be supplied to the market and anticipate barriers to success.

INVESTOPEDIA EXPLAINS 'Commercialization'

The process of commercialization is likened to a funnel. At the widest part are the many ideas that a company might have for launching a product. As the funnel narrows, the company weeds out ideas based on logistics and costs, consumer and economic trends, and feasibility. Commercialization is part of a larger feedback loop for a product, as the ultimate introduction of the product into the market may require adjustments to the process.

RELATED TERMS
  1. Distribution Management

    Overseeing the movement of goods from supplier or manufacturer ...
  2. Inventory

    The raw materials, work-in-process goods and completely finished ...
  3. Supply Chain Management - SCM

    Supply chain management is the streamlining of a business' supply-side ...
  4. Supply Chain

    The network created amongst different companies producing, handling ...
  5. Logistics

    The overall management of the way resources are obtained, stored ...
  6. Bottleneck

    A point of congestion in a system that occurs when workloads ...
Related Articles
  1. Working Capital Works
    Insurance

    Working Capital Works

  2. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  3. Operational Risk: A Must-Know For Investors
    Active Trading Fundamentals

    Operational Risk: A Must-Know For Investors

  4. Understanding Japanese Keiretsu
    Insurance

    Understanding Japanese Keiretsu

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center