After globalization, companies are thinking carefully about the best way to expand their product and service offerings. Thus, product success strategies are critical to their success. Still, many companies are in defensive mode and simply want to maintain a position in the marketplace.
However, there is a definite way to get behind companies that are in a holding position. Innovative thinking that allows product / service growth is a very sure way to sustainable success. In today’s discussion we will explore the importance of product development especially for business development in a competitive market.
Introducing new products into the offer is not easy. According to a market study, about 75% of consumer-packaged products and retail products fail to earn 7. 7.5 million in their first year. Clayton Christensen, a professor at Harvard Business School who is the world’s leading authority on disruptive innovation, suggested that the failure rate of new products could actually be as high as 95%. Product failure rates are related to products that are commercially launched but fail.
Jeffrey A. Moore, author After crossing the chasm, Maintains product placement challenges: “… Less successful products are often rationally developed some are not content to leave the stage without some revenge, these rogue and annoying crews jump on each other to find deaf goats and what do they say ? Illumination? With uninterrupted continuity and undeniable accuracy, all fingers point to the co-president of marketing! It’s the fault of marketing! “
Businesses that want sustainable growth must develop new products and services frequently and consistently. Philip Kotler and Kevin Keller, authors Marketing management“Continuous innovation is a necessity in an economy of rapid change. Higher innovation companies are able to identify new market opportunities and use them faster.”
When taking any step in developing new products, businesses should think strategically about developing their products. Its author is Alexander Chernev Managing strategic marketing, More logically that managing growth is the most preferred way to make a profit rather than just spending it.
He outlines four key areas for growth management, including: (a) acquiring and maintaining market position, (b) managing sales growth, (c) developing new products, and (d) managing product lines. Chernev thinks, “New products and services are key to sustainable growth; they enable companies to acquire and maintain their market position by taking advantage of market changes to create better customer value.”
That being said, developing a new product means having the ability to come up with an idea for a product or service and to transform it into an offer that customers want. The following products have the following steps for market use: (a) concept production, (b) concept development, (c) business analysis, (d) product development, (e) market testing, and (f) business establishment.
The Ansf matrix Strategic tools for product development combining market penetration, market development, product development and diversity. In a market penetration strategy, companies try to grow in existing markets using its existing product offers. With this strategy in mind, companies try to increase their market share. As a market development strategy, companies try to expand into new markets as new buyers using their existing offers. In product development strategies, merchants want to create new products and services targeting their existing buyers.
In a diversified strategy, an organization tries to increase its market share by simultaneously introducing new product offers as it enters a new market. Diversification is the most risky approach because it creates new changes (new products, new markets) all at once. Kotler and Keller further add to the difficulty of sustainable product success: “It’s increasingly difficult to identify what blockbuster products will transform the market, but constant innovation can force competitors to play catch-up.” The idea seems simple. However, it is puzzled with problems.
Without a doubt, many companies know that product development is a risky business. While many consumers will proudly announce the success of many innovative products like Apple and Google, these same buyers are not aware of the failure to launch numerous products in this country. In our discussions, I have demonstrated the importance of business growth, especially product development in a competitive market. Demo failure often leads to innovation.
The great American inventor, Thomas Edison, had his own share of failures, but he learned how to invent because of them: “I did not fail. I found only 10,000 ways that would not work.” Likewise, today’s traders can achieve success if they strategically understand how to market their products and services. While there is a huge risk of failure, there is also the potential for unexpected growth. Don’t wait until it’s too late.
D 2017 by DD Green