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Unformatted text preview: f customers to defend their market – Size and growth rate of the target segment – Is the firm a pioneer or a follower? – Cost and engineering advantages in producing the Cost product product – Creativity of the marketing plan Weblink: Lady Gaga & Polaroid (Source: www.cesweb.org) (Source: Drexel University Dr. Girish Ramani MKTG 347 14 Exercise: Think up examples of various products that meet one or more of the success factors mentioned in the previous slide For instance, an example of Success For Factor “Propensity of customers to Propensity defend their market” is the Apple Mac defend • The Mac customers come to the The defense of their product in the face of intense competition from IBM PCs of • This has provided a favorable This environment for Apple to innovate new product features from time to time time Drexel University Dr. Girish Ramani MKTG 347 15 Why do products fail? Drexel University Dr. Girish Ramani MKTG 347 16 Why do products fail? • Common causes of New Product Failures – Overestimation of Market Size – Product Design Problems – Product Incorrectly Positioned, Priced or Advertised – Costs of Product Development – Competitive Actions Drexel University Dr. Girish Ramani MKTG 347 17 Exercise: Think up examples of various products that have failed because of one or more reasons mentioned in the previous slide For instance, For • Crystal Pepsi sailed through the approval process rystal Pepsi • Focus groups loved the stuff, and test marketing was stupendous • Crystal Pepsi went national in 1993 with a full scale media campaign featuring Crystal Van Halen's 'Right Now' • In the ad blitz that followed, sales were impressive... • And then it flopped • No mention of the product can be found on the Pepsi website today Reason for failure ? (Point to ponder: Clearly Pepsi followed a scientific approach for launching a new product. What more could the Pepsi product manager have done to prevent a wrong reading of the consumer?) Drexel University Dr. Girish Ramani MKTG 347 18 Introduction (contd.) • Managing the process – Some factors are under the control of the firm – Others require information about market, competitors, Others engineering capabilities,or potential customers engineering – There are many other factors that are less controllable There and thus represent risk and Successful companies address these critical factors and Successful adopt a systematic approach from the inception of the idea inception to the decision to reposition or terminate an old product reposition terminate Web Link to related WSJ Article-Intel Rolls Out Core i7 Chip Drexel University Dr. Girish Ramani MKTG 347 19 Need for a new product­ Some initiating factors Financial Goals Internal Sales Growth Competitive Position Product Life Cycle Globalization Initiating Factors Ex...
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This note was uploaded on 07/04/2012 for the course MKTG 347 taught by Professor Dr.girishramani during the Spring '12 term at Drexel.

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