In a competitive era with a more biased competitors, a product will survive and develop only if it is suitable with market demand. What factors can cause a product to fail?
Director of Community and Global Entrepreneurship Columbia Business School, Jack McGourty Ph.D, gives explanation about certain factors which lead to the failure of a product. First, poor quality of market research. “This is the leading cause of product failure,” said McGourty on Info Session Program Short Course 3 Days “Venture for Growth”, an event by Columbia Business School and Binus Business School on Tuesday (26/4) at Binus International Campus, 6th floor of FX Mall.
Often times, the market researcher is not cautious and accurate in identifying market demand or competitor’s activities. Product testing are often not optimal, with very minimum field test and overly optimistic prediction of market acceptance. This can lead to a mistake in recognizing customers’ needs.
Second, technical problems, either at design or production. Product manufacturer often tries too hard at making a perfect product, resulting in an over-designed product with too many features. Sometimes, this leads to bad reception from the customers. Third, lack of effort in promoting the product. There are owner of brand or products who don’t realize the importance of marketing, because they believe that their product can sell itself. Overconfidence in a product and marketing strategy will backfire on the owner. Fourth, bad timing of launching the product. This usually happens when the product is released too late into the market because of lengthy product development.
Then, what factors can help a product to be successful? “Unique, superior, and different product with value for money for consumers. More importantly, how long we can maintain the reputation of the product,” said McGourty, who spoke through live video conference from New York, Tuesday night. Other factors which influence the success of a product in the market are strong market orientation, market attractiveness (size, growth, margins), leverage (where projects are built on team’s technology and marketing competencies), multiple interaction of early product design and testing, and quality of initial launch effort.
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