This essay explains the stages of new product launch from the idea generation to the commercialization and examines the impact and role of marketing research in this process. The study identifies the factors that affect new product success and failure by giving examples from market tops and market flops and evaluation criteria were developed to search for the answer of the question why they succeeded or failed. Hypotheses were generated for the new product failures despite market research support as well.
Table of Contents
1. Introduction
2. New Product Launch Process
3. New Product Success and Failure
4. Conclusions
5. References
Objectives and Core Topics
This essay explores the sequential stages of the new product development process, from initial idea generation to final commercialization, while evaluating the critical impact of market research on product success or failure. It aims to identify key determinants of successful launches and analyzes reasons for market failures through historical case studies.
- Comprehensive analysis of the new product launch lifecycle.
- The strategic role and function of market research in product development.
- Identification of critical success factors for new market entries.
- Examination of factors leading to product failure (market flops).
- Case study evaluations including BlackBerry, Hyundai Santro, and the Ford Edsel.
Excerpt from the Book
3. New Product Success and Failure
In industry, new product success criterion is commercial. A new product failure is the product which could not get the worldwide market share and/or make profit (Kong 1998).
New product success is affected from the product uniqueness to marketing seduction. Cooper and colleagues determined eight key factors for the success of a new product: Supreme, unique product with peerless benefits to the consumer, well-defined product and project before embarking development, technological co-occurrence, quality of accomplishments of technological proceedings, quality of other predevelopment proceedings, marketing co-occurrence, quality of accomplishments of marketing proceedings and market seduction (Reid & Plank 2004).
BlackBerry is the product of the company Research in Motion (RIM). After September 2011, it could achieve to become a critical and communications gadget for the government. After that RIM carried out introducing the new generations of BlackBerry focusing on main business properties, high-security, longer-lasting battery, improved WLAN access. The strategy of the company was to make BlackBerry brand the safest, dependable and efficient gadget in the market. They sold one million pieces in 2003, two million pieces in 2004 and had a boom in 2005 in the market. This success in the mid-2000’s came with being the innovation leader at that time. They changed the way how people communicated each other, worked and lived. Unlike its rivals, BlackBerry developed and manufactured everything, from hardware to software, itself. RIM followed the strategy to partner with a lot of carriers around the world instead of only one (Kotler & Keller 2012)
Summary of Chapters
1. Introduction: This chapter contextualizes the importance of new product launches in a changing market and introduces the critical necessity of market research for informed decision-making.
2. New Product Launch Process: This chapter details the nine sequential stages of the product introduction process, starting from strategic objective setting through to final commercialization.
3. New Product Success and Failure: This chapter analyzes the criteria for market success and failure, providing real-world case studies to demonstrate how research and strategic positioning influence outcomes.
4. Conclusions: This chapter synthesizes the vital role of market research throughout the product lifecycle and reaffirms the common causes of failure despite research efforts.
5. References: This section lists all academic and industry-specific sources used to compile the research.
Keywords
Market Research, New Product Launch, Product Development, Marketing Strategy, Consumer Perception, Product Failure, Success Factors, Commercialization, Idea Generation, Concept Testing, Branding, Market Entry, Innovation, Marketing Mix, Product Lifecycle.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper examines the entire lifecycle of a new product launch and investigates the specific role and impact of market research in ensuring commercial success or mitigating the risk of failure.
What are the core thematic areas discussed in the document?
The text covers the definition of new products, the nine mandatory stages of product development, the factors that contribute to market success, and an analysis of branding and strategy-related failures.
What is the central research question?
The essay seeks to understand how market research is utilized throughout the product development process and why many products still fail despite such research support.
Which scientific methods are employed in this study?
The author uses a descriptive and analytical approach, combining literature review with qualitative case study examinations, such as those of the Ford Edsel and New Coke, to test generated hypotheses.
What topics are addressed in the main body of the text?
The main body breaks down the product launch process into stages, discusses the "voice of the customer," and evaluates the influence of factors like pricing, timing, design, and consumer perception on product outcomes.
Which keywords best characterize this work?
Key terms include market research, new product launch, product development, consumer perception, product failure, and strategic marketing.
Why did the Ford Edsel fail despite extensive research?
The failure was attributed to poor market timing, an unappealing design, an expensive price point not justified to consumers, and a disconnect between the brand promise and the actual product performance.
How does the author interpret the failure of New Coke?
The author argues that Coca Cola focused too heavily on the new formula while ignoring the strong emotional brand connection consumers had with the original, proving that marketing is more than just product features.
What differentiates the successful market entry of Hyundai's Santro?
Hyundai's success in the Indian market was driven by deep, year-long observation of local driving conditions, thorough consumer research, and a strategy tailored to the specific "value-for-money" target segment.
- Quote paper
- Ilhan Yuece (Author), 2012, Impact and Role of Market Research in New Product Launch Process, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/201824
