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business and 18% for services fail. Why do they fail so much? High-level excitement push an idea in spite of poor findingsIncorrect positioning in marketPrice too high or poorly pricedNo perceived need or perceived inferior productBecause so many new products fail, companies are anxious to learn how to improve their chances for new-product success. One way is to identify successful new products and find out what they have in common. Another is a well defined product concept prior to development, in which the company carefully defines and assesses the target market, product requirements and the benefits before proceeding. Top management is ultimately accountable for the organisation’s new-product success record. They must define the business domains, budget and product categories that company wants to emphasize. It is time consuming and requires a total company effort- “if it isn’t broke, don’t fix it”. New-product development starts with ideas generation, the systematic search for new-product ideas. To obtain a flow of new-product ideas, the company can tap many idea sources, including: Internal sources- 55% of new-product ideas come within the company Distributing prohibited | Downloaded by Zaeed Huq ([email protected])lOMoARcPSD