Causes of New Product Failure


Many new products with satisfactory potential have failed to make the grade. Many of the reasons for new product failure relate to execution and control problems. The following is a brief list of some important causes of new product failures after they have been carefully screened, developed and marketed.

  1. No competitive point of differene, unexpected reactions from competitors, or both.
  2. Poor positioning.
  3. Poor quality of product.
  4. Nondelivery of promised benefits of product.
  5. Too little marketing support.
  6. Poor perceived prices/quality (value) relationship.
  7. Faulty estimates of market potential and other marketing research mistakes.
  8. Faulty estimates of production and marketing costs.
  9. Improper channels of distribution selected.
  10. Rapid change in the market (economy) after the product was introduced.

 Some of these problems are beyond the control of management; but it is clear that successful new product planning requires large amounts of reliable information in diverse areas. Each department assigned functional responsibility for product development automatically becomes an input to the information system needed by the new product decision maker. For example, when a firm is developing a new product, it is wise for both engineers and marketers to consider both the kind of market to be entered (e.g., consumer, organizational, international) and specific target segments. These decisions will be of paramount influence on the design and cost of the finished good, which will, of course, directly influence, price, sales, and profits.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Call People by Name


President Reagan often is referred to as the greatest communicator ever to serve as President. And for good reasons. He used to speak slowly in a well-modulated voice, looks directly in the person or people he is speaking to, remains calm under pressure and uses simple, easy-to-understand words. Mr Reagan employs many subtle but persuasive techniques in dealing with public. Very importantly, at news conferences which are typically a very difficult presidential task, Mr. Reagan would address reporters by name when accepting a question rather than just indicating with a hand motion which reporter might speak nest. It may seem like a small point, but his method was conducive to help create good relations with the press. Why? Because people cooperate better when they are recognized by name. being addressed by name I a sincere and deeply appreciated compliment. It tells a person, “You are important to me.”

 Lyndon Johnson, the Great “Persuader,” practiced remembering names, and Lyndon Johnson was number one “persuader president” of modern times. He was enormously effective in bringing opposing factions together to get legislation passed.

 Why was President Johnson so effective as a human relations engineer? He worked at it! Long before he succeeded Mr. Kennedy as President, he developed and practiced his own ten rules to make himself more effective in working with people.

 President Johnson’s system for how-to-win-influence-over-people appears below:

  1. Learn to remember names. Inefficiency at this point may include that your interest is not sufficiently outgoing.
  2. Be a comfortable person so there is no strain in being with you. Be an old shoe, old hat kind of individual.
  3. Acquire the quality of relaxed easy-going so that things do not ruffle you.
  4. Don’t be egoistical. Guard against the impression that you know it all.
  5. Cultivate the quality of being interesting so people will get something of value from their association with you.
  6. Study to get the “scratchy” elements out of your personality.
  7. Sincerely attempt to heal every misunderstanding you have had or now have. Drain off your grievances.
  8. Practice liking people until you learn to do so genuinely.
  9. Never miss an opportunity to say a word of congratulation upon anyone’s achievement, or express synpathy in sorrow or disappointment.
  10. Give spiritual strength to people, and they will give genuine affection to you.

 Every person has a name and as Dale Carnegie observed, a person’s name is the sweetest word in our language. People feel bigger and better when called by name because it is their most valuable possession. It gives them a sense of individuality – a feeling of being unique.

Hereare five guidelines for calling people by their names to win their cooperation:

  1. Pronounce the other person’s name correctly.
  2. In conversation, use the other person’s name often.
  3. Use nicknames only when you know they are preferred by the person.
  4. Use a person’s last name until familiarity is established.
  5. Spell the other person’s name correctly.

 “Do you know who I am?” The law of self-interest—the tremendous craving for self-identity—comes through in many little ways.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Structure, Roles, and Rules


What sort of structure would help the team function innovatively? The purpose of any structure is to make sure that certain essential tasks, especially repetitive tasks, get done. Structure need not be incompatible with creativity if it realeases time and energy for creative work rather than blocking creativity with excessive rules, specialization, centralization, etc. What, therefore, needs to be done is to make an inventory of tasks that must be performed more or less repitively, and allocate these tasks to individuals within or outside the team.

 However, the roles of team members should not be defined only in terms of these tasks;  there are only minimum elements of their roles. It is important to define roles broadly and not too strictly. Some ambiguity helps interaction and role clarification, not by the leader but by the situation. Indeed, it heps to have versatile team members, i.e., persons who can double for others should the need arise. Periodic interchange of roles within the team can help develop this verstality. Researchers have indicated some specific roles in innovative teams beyond those for effective teams. The creative scientist/engineer/idea man is one role. The entrepreneur (vis-à-vis the outer world) and the intrapreneur (vis-à-vis the team members) are further roles. The entrepreneur seeks new missions for the group. The intrapreneur seeks new activities within the broad mission for group members. The protector-defender-sponsor is a fourth role, whose function is to get the team the resources it needs for innovative work from the larger system of which it may be a part, and also to defend the team from external pressures or attacks. The gatekeeper is a fifth role, that of bringing to the team essential market, technical, or political intelligence from outside that can become the basis for meaningful divergent thinking. These roles need not be played by different individuals. The important point is that they should get played.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Reinterpreting Products


Product is not what the engineer explicitly says it is, but what the consumer, implicitly demands that it shall be. Thus the consumer consumes not things, but expected benefits—not cosmetics, but the satisfactions of the allurements they promise; not quarter-inch drills, but quarter-inch holes; not stock in companies, but capital gains; not numerically controlled milling machines, but trouble-free and accurately smooth metal parts; not low-cal whipped cream, but self-rewarding indulgence combined with sophisticated convenience.

The product does not exist as a separate entity. The product is what the consumer perceives it to be. Consumer perceptions are strategically important at all stages of product development, from initial conceptualization to concept testing, to positioning, to designing, manufacturing, packaging, pricing, delivering, advertising, selling, financing, and servicing. Product analysis, therefore, embraces systematic research at all stages. The focus of such research is not on the product itself, but on the consumers and how they respond to the various alternatives at each stage.

To simplify the exposition I am drawing examples primarily from the field of consumer products, such as the tangible items found on the shelves of supermarkets, in department stores, appliances shops, and automobile showrooms. In doing so I am not overlooking the importance of the field of services, such as airlines, insurance companies, banks, and travel agents; or the field of industrial goods, such as computers, chemicals, textiles, and lift trucks. While there are some differences in marketing strategies from one category to the next, the underlying principle of delivering customer satisfaction is the same.

Therefore, the producer should analyze actual or potential product or service in terms of its ability to meet a consumer need or want. It is axiomatic that consumers cannot draw the blueprints or provide detailed specifications for producers. It is up to the business person to experiment with new products or services, or modifications of old ones, and test their acceptance in the marketplace. Advertising can then be used to point out their presumed need/want satisfying properties to would-be users.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Next Newer Entries