StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Marketing New Product Development - Case Study Example

Cite this document
Summary
This study discusses new product development because many consumer goods flop significantly in the first year of sales in the market. A common reason for failure is the wrong assessment of the marketing environment. A firm may have a good product but fail to meet the wants of the consumer…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Marketing New Product Development
Read Text Preview

Extract of sample "Marketing New Product Development"

Marketing New Product DevelopmentMany research firms have proved that many consumer goods flop significantly in the first year of sales in the market. Likewise, several products that do well in the beginning many times fail to sustain the same sales in the market. Many reasons attribute to this. A common reason for failure is a wrong assessment of the marketing environment. A firm may have a good product but fail to meet the wants of the consumer. An example is when Coca-Cola introduced C2, which most men rejected at its launch because of unfavourable benefits.

In most instances, the marketing firms fail to do their job adequately to come up with the true picture of the market. The market target may be too small to reflect adequate profits. For a significant success of a product, the market should be large enough to make huge sales.Another major reason for product failure is the quality. A product that does not meet customer satisfaction is prone to fail. Every good released into the market must be effective enough to meet the customers’ needs. In addition, the product may not offer any significant improvement of the product already available in the market.

Most customers would go for a new product if it offers better features or solves the problems witnessed in the current ones in the market. Some products may meet customer needs but have little access to the market. A good example is the case of small companies that may have a difficult time penetrating a market that is dominated by big competitive companies. This can be seen with the failure of Microsoft Zune. Such issues arise from lack of proper competitive analysis.Small companies face difficulty in budgeting and meeting the demands of the marketing plan.

It is especially because of over optimisation about the marketing plan at hand. Poor budgeting may lead the company to have a problem of pricing too. Since the budgeting consumed a lot of funds, the firm may try to recover it by offering unreasonable pricing for the commodity. In addition, the firms may run out of money before testing the product completely. The firms decide to test the products on the customers directly and end up flopping.Marketers have learnt that there is no available remedy that can act as a quick fix for all market flops.

However, there are steps that firms can take to increase their odds of new product success. Companies should have a clear understanding of the market, competitors and consumers of the products. The company should ensure that the product is unique and quite superior from the consumers’ perspective. The unique aspect is in terms of the features, specifications, design, and the attributes. The idea is to put the consumers’ interests first.Companies must carry out full pre-development activities.

Firms must do their homework fully. That is, they must conduct proper market research and do business analysis before developing a product. A company could use the benefits of innovation to come up with an appealing product. It could introduce an advantage from an existing product and build on it to create a better one. The secret is to ensure that the new product is appealing and meets the current need of the consumers.ReferenceHill, C. W. L., & Jones, G. R. (2012). Essentials of strategic management.

Australia, South-Western/Cengage Learning.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Answer a short essay style question of marketing NPD new product”, n.d.)
Answer a short essay style question of marketing NPD new product. Retrieved from https://studentshare.org/marketing/1695303-answer-a-short-essay-style-question-of-marketing-npd-new-product-development
(Answer a Short Essay Style Question of Marketing NPD New Product)
Answer a Short Essay Style Question of Marketing NPD New Product. https://studentshare.org/marketing/1695303-answer-a-short-essay-style-question-of-marketing-npd-new-product-development.
“Answer a Short Essay Style Question of Marketing NPD New Product”, n.d. https://studentshare.org/marketing/1695303-answer-a-short-essay-style-question-of-marketing-npd-new-product-development.
  • Cited: 0 times

CHECK THESE SAMPLES OF Marketing New Product Development

Creating and Marketing a New Product

Creating and Marketing a new product Table of Contents 1.... In this regard, the primary purpose of this essay is to create an effective marketing plan for new product i.... Price The pricing strategy of a new product can be further considered as an essential factor, which can enable an organization to... product 5 2.... The product will be marketed under the flagship of Toys R Us, one of the leading toy retailers which currently operate more than 1500 retail toy stores across different business locations of the world (The Toys R Us, 2013)....
5 Pages (1250 words) Essay

How Marketing has changed because of the development of technology

The creation of essential components of the product and market strategy is needed.... Making a product nearer to the customer is also a compulsion in the competitive market.... After the advent of information technology, the marketing took new turn and the clients are being contacted through internet or the network of the companies.... The researcher of this essay focuses on the change of marketing due to technological advances....
7 Pages (1750 words) Essay

Innovation and New Product Development

The aim of the current essay is to outline the aspects of choosing the correct strategy for new product development in the existing market.... new product development is defined as; 'the processes involved in getting a new product or service to market.... [5] new product development and innovation are an integral part of many companies.... The traditional product development cycle, the stage-gate model, embraces the conception, generation, analysis, development, testing, marketing, and commercialization of new products or services....
10 Pages (2500 words) Essay

Strategic Marketing Product Mix and New Product Development Strategies

And a creation of a new product, coffee for example, The Pepsi Company would like to create a new product line like coffee.... This new product would require new machineries for the coffee beans and the skilled people in the coffee industry.... With the development of a coffee brand of in the Pepsi Company, the organizational structure of the production division would be changed.... In addition, different approaches of promotional campaigns have been imposed so as to make the product more appealing to the target market and to make these products marketable (Pepsi World, 2005) The Pepsi Company already has a lot of products including business ties with Lipton Iced Tea, but that doesn't stop them from creating more new products....
3 Pages (750 words) Essay

Teams Are Seen as a Necessary Condition in Contemporary Organisations, But Are They Effective

hellip; accomplish tasks associated with marketing, new product development, or even improvements in the operational model, the need for pooling specialized talent throughout the organisation becomes ever more important.... In the forming stage of team development, defining specific goals is a paramount objective after individuals have been recruited.... During this stage of team development, uncertainty abounds in a variety of categories from job role identification to setting up group norms and rules that will drive the functional group....
10 Pages (2500 words) Essay

Engineering application - Marketing

The technology product is manufactured by FutureTechologies.... A major negative consequence is that publicity will be minimal; hence, the target customer base will not understand features of the product.... The marketing plan aims at illustrating the marketing strategies adopted by the company (Future Technologies), for the new technology product referred to as hover boards.... The enhanced financial value has the beneficial effect of improving shareholder returns, and financial new production system that creates more superior products for the future transportation market....
4 Pages (1000 words) Essay

New Product Proposal and Development

In the paper “new product Proposal and Development” the author analyzes a new technology in the market, which uses kinetic energy to charge mobile devices, tablets and other small electronics devices....  The small innovations typically make up for more than 80% of the development of the company (Annacchino, 25).... R-W-W directs the project to answer six important questions, which are, does the product have a real market?... Does the company produce a genuine product?...
3 Pages (750 words) Essay

Process of New Product Introduction

The author of the following research paper "Process of New Product Introduction" states that New Product Introduction (NPI) or, sometimes, new product development (NPD) is the process by which organizations launch a new product or service into the market for the first time (Moore, 1999).... hellip; According to the text, NPI involves the entire process involved in introducing a new product in the market.... The process of introducing a new product should ideally be very easy....
11 Pages (2750 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us