15. Reactive and proactive models

Decisional notes establish the stages of conduct in case of implementing either the reactive or the proactive option of the new product development strategies. Chart shows schemes of reactive and active models.

Scheme of the reactive models

The proactive strategy is mostly chosen due to the company’s marketing strategy.

The “identification of opportunities” is an important factor in this strategy. Opportunity identification should be based on a systematic search of the target domain.

Traditional method of generating ideas and their evaluation is substituted with identification of a few ideas displaying high potential of competitive advantage and their careful examination.

Sheme of the proactive models

The lack of new possibilities forces the return to the previous stage and the reinforcement of the process of identification opportunities. The transformation of attractive ideas into a design of new products requires an accurate defining of a target sector of the market and the specification of expected profits.

The collection of profits is shown to the evaluation of the potential customer. The accepted project requires the decision to begin testing customers’ reaction in a full scale. The positive response allows for deciding to introduce the product to the market.

The effectiveness of the proactive strategy stems from the level of innovation and the efficiency of the other marketing factors. Reactive strategies are used when a company wants to avoid high costs and to reduce the risk significantly.

In this strategy, the new products are identified along with the activity of the competition and the marketing environment (competition, customers, and suppliers).

The next stage of strategy is the evaluation of the factors to assess probable dangers and possibilities. The competition may influence sales and profits, and then the reactive strategy needs to be established by coping the market offer or by improving it (second-but-better strategy, or the strategy of imitation). If it is not protected from the competition’s attack it should reposition the offer by the distinctive price, advertising actions or the sale strategy. Testing the reactive strategy requires faster and more veiled action in order to reduce the possible reaction of the competition.

The management of the product existence on the market is the same as in the case of the proactive strategy, except that it aims at cheaper and faster operation.

Formulation and realization of the new product strategy in an enterprise requires well-planned and systematic decisions concerning actions that contribute to the PRNP. The decisive importance for the efficiency of the process consists of three factors: information, innovation and the implementation of products