Miscommunication, misinterpretation and limited view of the environment, critical factors. Many factors can affect the success or failure of new products. Sometimes ideas that seem great at the market are “flop” or ideas that seem very simple “true hits”.
Ideas play a key role, but. Why good ideas are not successful ?, What are the factors that make an idea fail?, this Article simply appoint some of the typical causes of failure of new products or ideas.
Below is a list of factors that sometimes make a new product failure.
1. Miscalculated Potential:
Start with too high expectations, is the first factor of irrigation and failure, improperly determine the true potential of an idea is crucial in planning and sales estimates and subsequent investments.
2. Technological Change is not Analyzed:
The failure can also be a matter of “timing”. Some interesting products are quickly displaced by new technologies or new methods and poor analysis of the “State of the Art”, generates losses for obsolescence.
We are in a fast but demanding world. failures are unacceptable products and markets to perform ejected quickly unprofessional work.
Properly balance cost with quality is an art if it is not learned will be synonymous with failure.
The failures of marketing:
1. Bad publicity.
2. Packaging and unattractive disclosure.
3. Research and badly botched segmentation.
4. Channels of distribution and marketing obsolete and ineffective.
4. Unexpected Market Reactions:
The acceptance of a product depends sometimes fashion considerations. The construction of the “good will” of the product shall meet fashion considerations, age appropriate segmentation and precise target markets, the product otherwise be “off”.
Building a product and company image is critical.
A typical example might be contaminants in the seventies, companies defended their products without environmental considerations were punished by the markets, despite being products of high quality and utility.
Success is synonymous with fashion, quality, price and timeliness.
5. Inadequate Environmental Analysis:
When you do not have an overview of what is happening in the world around the product or service, the external risks that can cause a failure forget.
GM is a prime example, as they were occurring somewhere in the world, others were forbidding. Today is less acceptable products and preference for “natural” is on the agenda.
It is the most logical factor. Making decisions involves risk and some risk will always be present. Good management should know how to play with your alternatives, make decisions that ensure stability and long-term growth and maintain a proper and responsible management of companies.
7. Additional Factors:
- Poor security investments.
- Incorrect cost estimates.
- Misallocation of expenses.
- Product poorly presented.
Failure is a possibility that you can avoid if you work in a professional, long-term vision and objectives and clear and serious studies.