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Failure or success? (Reasons new products sometimes fail include the…
Failure or success?
Reasons new products sometimes fail include the following (Kotler and Armstrong, 2016)
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Reasons why new products succeed Cooper (2011, cited in Cooper, 2012)
. A unique superior product – a differentiated product that delivers unique benefits and a compelling value proposition to the customer or user is the number one driver of new product profitability.
Building in the voice of the customer – a market-driven and customer-focused new product process is critical to success.
Doing the homework and front-end loading the project – is key to success. Due diligence done before product development gets underway pays off!
Getting sharp and early product and project definition – and avoiding scope creep and unstable specifications – means higher success rates and faster to market.
Spiral development – build, test, obtain feedback and revise: putting something in front of the customer early and often gets the product right.
The world product – a global or glocal product (global concept, locally tailored) targeted at international markets is far more profitable than the product designed to meet one-country needs.
A well-conceived, properly executed launch – this is central to new product success. And a solid marketing plan is at the heart of the launch.
Speed counts! – there are many good ways to accelerate development projects, but not at the expense of quality of execution.
(Source: Schneider and Hall, 2011, pp. 21–23) Reasons for product launches failing
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The product is revolutionary, but there’s no market for it
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Only a few new product ideas are good enough for commercial success (Dibb et al., 2016)
One way around the risks of new product development some companies use is to buy other businesses to acquire newly developed products or services (vertical integration)
A multinational corporation (MNC) developing new products for emerging markets needs to consider some additional success factors, such as adapting marketing research approaches to local conditions where customers are located and involving local opinion leaders; designing simpler products from the outset using creative thinking; establishing local networks and partners; employing, where necessary, unconventional marketing distribution and communication channels to suit local conditions (Dubiel and Ernst, 2012)