Marketing New Product Development Case Study Example | Topics and Well Written Essays - 500 words

Marketing New Product Development - Case Study Example The market target may be too small to reflect adequate profits. For the significant success of a product, the market should be large enough to make huge sales. Another major reason for product failure is quality. A product that does not meet customer satisfaction is prone to failure. 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 in 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 optimization 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 learned 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.