Identify reasons why a new product may fail. What strategies can a company use to increase the chance for marketing success for a new product that has been developed?
Let's look at several reasons, and among them you can pick out four that you are most comfortable with for this assignment:
A well-differentiated product is perceived by customers as having some desirable characteristic. A poorly differentiated product offers consumers no reason to stop buying what they usually buy.
Inadequate market research
Unless you understand the market for a particular product, for example, its size, growth rate, preferences, price sensitivity, and buying behavior, it is almost impossible to predict what will happen to a new product after it is launched. It is also very difficult to design a rational marketing strategy without this information.
A poorly planned product launch
Poor planning can lead to a number of unhappy situations including inadequate publicity, distribution problems, underproduction and stock-outs, or cash flow crises. If the firm has limited resources, many of these situations could result in business failure.
A poorly timed product launch
Launching a new product out-of-season or in the middle of a competitor's new advertising campaign is risky. Poor initial sales may make it impossible to continue supporting the product's marketing and production costs.
Loss of objectivity by the owner or management Sometimes the owner or management of a company becomes obsessed with an idea and loses the objectivity required to ...
This solution identifies 10 reasons why a product might fail and strategies for mitigating these risks in 888 words.