Definition of Time to Market
Time to market is the time which is between the product being manufactured and the product being ready to sale in the market. This time to market matters for such products which is dependent upon the demand and supply prevailing in the market and thus this time plays a very vital role in screening the product’s availability.
Time to market is the duration of the time which is available with the manufactures of the product to bring back the product from the production to the sales counter.This time can be used by the manufactures to make certain improvements in the product which can make it more marketable. Time to market can affect many products may be in a good or bad ways. Many industries use this phase as a development phase because they can get an idea about the products and its demand in the market and in some industries the products are considered to be in the development phase when the complete approval of the product is achieved.
Measuring Time to Market
There cannot be any particular formula to measure or calculate the time to market. The time to market duration is different for different industries and the products hence there cannot be any recommended formula for the same. It is also a fact that time to market is the duration which is an important phenomenon to understand the marketability of the product. It is measured for the products individually. The time to market also predicts the time duration with which the product is brought in the market. Therefore to calculate the duration the company should identify the time which is required to make the product marketable after the manufacturing work is done.
Example of Time to Market
Mr Singhania is working on a product. He has done all the arrangements of the meeting with the company’s board of directors and the technical persons to approve the product. Few samples were made of the products and the approval is required by the board to make the lot. Now the meeting was held on 5th October 2020. In this meeting few pointers were taken care of and the technical officers were given a task to improve the products as discussed by the board. Therefore the improved version of the product was launched on 21st October 2020. After other formalities the product was launched in the market on 4th November 2020. Therefore by understanding the product’s time taken to get ready for sale we can say that the time to market for the particular product is 30 days.So, it is different for different products and thus it cannot say that the time to market is same for all product type.
Time to Market Diagram
The graph represents the time taken to make the product marketable.
All the stages are mentioned and the time taken in each stage.
|Out for Sale||24|
According to this graph the product will take approximately 2 years to reach the market. Thus it is called Time to market.
Types of Time to Market
The following are types are given below:
- Flexibility: – Time to market period is flexible in nature. The market can be very flexible at times and the products can take longer time to reach its desired customers.
- Speed up the production: – By looking at the market demand and supply the time to market can help the manufacturers of the product to speed up the production of the product as per the demand.
Ways to Speed up Time to Market?
- The time to market can be speed up by improving the workflow in the factory or in the manufacturing unit.
- The basic trend of the market can be easily analysed.
- The time to market can help the manufacturers in making extra efforts to meet the demand of the customers because in this phase the manufacturers can locate that where the product stands.
Why is Time to Market Important?
- Time to market is important because it can predict the position of the product in a better way.
- The time to market is an important tool that can help the manufacturers in deciding the optimal utilisation of the resources in the production of the products.
- Time to market is like a guide to the manufacturers to make the proper arrangements for the marketability of the product.
- The products can be easily placed in the market if the time to market time is perfectly managed.
Benefits of Improving Time to Market
Some of the benefits are given below:
- The benefits of improving the time to market can be very significant.
- The time to market can help the manufactures in making the relevant changes at the time of market so that the marketing of the product can be done easily.
- The time to market can also help the manufacturer to identify the loop holes in the manufacturing and also gives them time to improve.
- The time to market can help the customers to understand their demand and thus the supply in the market.
- The time to market is very useful for the proper analysis of the market and its products.
Tips to Improve Time to Market
- Elimination of wastage can help to improve the time to market.
- Unnecessary meetings to approve the products and other meetings can also be avoided to make the most utilization of the time to market.
- The correct timing and the proper utilization of the marketing skills can help to improve the time to market with a good pace.
- The time to market is a very vital tool to analyze the improvement of the product’s availability and the quality.
Time to market is an essential phenomenon nowadays. The time to market can help the manufacturers to make the proper analysis of the products which is in demand. The products can also get a proper dimension in this period so that the manufacturers and the consumers both can have a good idea.
This is a guide to Time to Market. Here we also discuss the definition and types of time to market along with an example and benefits. you may also have a look at the following articles to learn more –