Discuss why very often new products fail in the market?
Answer:
Necessity is the mother of invention. Someone unleashes a new product because they feel there exists a need for this item. New products often fail because their producer fails to make a connection with the target market for this product. If you cannot get your product into the hands of people who will pay for it, you won't be able to make any money. Launching a new product requires a great deal of capital to get through the initial months of introduction. Many business underestimate the work and resources they need to launch a new product, and some companies envision a niche for a product where no market truly exists.
First, the main reason is the strong competition! with all the globalization, to many similar products are competing together.
Think how many soft drinks or cigarettes we have! imagine how it will be difficult to introduce a new one, which will be able to survive in this furious competition.
Second,is the inability of the new product introductions to use a strong,effective and integrated marketing strategies.It is not enough to have a good product, you also need to market it in an appropriate way,using a lot of promotion.I do not mean using ads only but BTL activities,since people are attracted by deals.
Third, a good marketing research is necessary to determine the target market, the segment, the positioning.
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