Question 1: Reasons for Product Failure
Many new product projects fail in the market due to various reasons. The primary causes of product failure include; poor customer understanding, inadequate market analysis, underfunding of the required resources, product defects or poor quality, low commitment and support from the senior management (Markovitch et al., 2015). It is widely acknowledged that new products have low awareness in the market. Therefore, effective marketing efforts are required to promote customer understanding. Poor market analysis may lead to product failure because of low understanding of the customers’ demands and the most suitable consumer segment to be targeted. Quality is also paramount. New products need to be of high quality to gain competitive advantage in the market. Lastly, senior management commitment and allocation of resources helps in supporting various activities of product development.
Question 2: Various Categories of New Products
There are six primary categories of new products. They include; the new to the world products, new product line or new to the firm, addition to existing product lines, modification of existing products, repositioning products and cost reduction products (Baxter, 2018). The new to the world products refers to inventions that are unique in the market. Addition to existing product lines are products that serve as an extension to existing products. New to the firm product, are type of products that already exist in the market but a firm is adopting them for the first time. Modification of existing products refers to adding value to existing product lines. Repositioning refers to products that are targeted for new application or use. Lastly, cost reduction refers to products that replace existing products with similar performance but offer reduced cost experience to customers.
Question 4: The New Product Process and Fuzzy Gates
The new product process refers to the steps of introducing a new product into the market. It has four main steps that include concept evaluation, product development, product launch and product post-launch. Fuzzy gate refers