Reasons why new products fail in the market?

Question

Reasons why new products fail in the market?

Answer 1

New products fail for several reasons, here are a few of them:

1. THE PRODUCT FAILS TO MEET A CUSTOMER NEED. If a product doesn't address a true customer need, or if it fails to do it better than an existing product that customers are more familiar with, it will fail.

2. THE PRODUCT'S MARKETING IS NOT TARGETED CORRECTLY. Savvy marketers spend hundreds of thousands of dollars to identify potential users of their products and even more money trying to reach them. These days, it is just too expensive to shout your message to the entire world - you have to know who your customers are and how to reach them. For instance, if you are selling Medicare coverage and advertising your product on SPIKE TV or MTV, you will totally miss the mark.

3. THE PRODUCT IS A ME-TOO PRODUCT. Unless a product offers a clear, distinct advantage over an existing product, it may be doomed for failure. Product advantages can include a lower price, a better warranty, better quality, or what have you.

4. "INFRASTRUCTURE" ISSUES. If a manufacturer is unable to distribute his/her products, properly service their products, or address product performance issues, they may also fail.

5. PRODUCT QUALITY. If the product is cheaply made or falls apart after a few uses, it may have a very short time on the market.

6. LACK OF MARKETING SUPPORT. You may have the best product in the world, but unless it is properly marketed, no one will ever know about it. Every marketing budget should not only include the cost of production, but also the cost to market the product.

These are just a few of the reasons why products fail. I've probably missed several others.

Answer 2

How To Get Customers To Return

Customers must return, or you, your product fails.The secret, to keeping customers, is

consistent behavior. It pulls customers

back faster than anything else. The

principles that landed you their trust,

initially, is the glue securing,

additional, business from them.

Answer 3

Fewer than 10% of all new products/services produce enough return on the company's investment to survive past the third year. Why? Here's our Top 10 list of reasons new products and services fail:

Marketers assess the marketing climate inadequately.

The wrong group is targeted.

A weak positioning strategy is used.

A less-than-optimal "configuration" of product or service attributes and benefits is selected.

A questionable pricing strategy is implemented.

The advertising campaign generates an insufficient level of new product/new service awareness.

Cannibalization depresses corporate profits.

Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world.

The marketing plan for the new product or service is not well implemented in the real world.

The marketer believes that the new product and its marketing plan has died and cannot be revived, when, in fact there is the potential for resurrection