hsharerabinoinformation and marketing strategy.ppt.pptVIP

h:\share\rabino\information and marketing strategy.ppt h:\share\rabino\information and marketing strategy.ppt * Why New Products Fail? Depending on study, up to 80% of new products fail. Reasons can suggest ways of proving problems. Too small a target market – must be large enough to be profitable Poor product quality/performance – product has to work adequately, meet customer needs Problem of tradeoffs. Company may mismanage a tradeoff in benefits. MacLean Deluxe Insignificant point of difference – product is not a great improvement on competitive offerings h:\share\rabino\information and marketing strategy.ppt * Why New Products Fail? (cont’d) No protocol – clear statement of target market, its needs, what product would do Poor positioning – diet beer vs. light beer Inadequate budget – biggest reason small companies fail is inadequate capital Inadequate competitive analysis – reaction of current incumbents, products from new entrants Blinders (=“Vision”?)– company may have preconception that is never questioned. (Especially for high-tech) h:\share\rabino\information and marketing strategy.ppt * Why New Products Fail? (cont’d) No Access to Market – especially difficult for smaller companies in competitive industries. Bad timing – “Better never than late.” relative to competitors, First-movers may have advantage. Relative to customer trends, may not want to be early; too much education required. Poor execution of marketing mix – wrong price, wrong distribution, wrong ad campaign. “Bad advertising kills a good product” h:\share\rabino\information and marketing strategy.ppt * Taxonomy of Types of Innovation Familiar with Product class Unfamiliar with product class Known Product Modifications Examples: Extra-strength pain killer Unscented TIDE Downsized Market Modification Examples: “Personal copier” Food processors for home use Developing Routine Innovations Examples: Digital audio tapes Fuel injected engines Product “Alpha” Radical Innovation Examples: Geneticall