What are The Reasons for New Product Failures?

From a marketing perspective, what are the reasons for new product failures?

When it comes to marketing and products, the first thing that comes to mind is the 4P model of marketing. In addition to products, the others are price, channel and promotion. Therefore, the reason for the failure of new products seems to be related to the remaining 3 Ps, but the 4P model has certain limitations, and the model is more suitable for manufacturing applications. It is not suitable for retail, finance and public utilities, such as the influence of retail location and visual system. It can be seen that the reason for the failure of a new product is a multi-dimensional problem, such as real demand, product design and positioning, customer satisfaction, market strategy, initial management of the product life cycle, and so on.

1- Lack of in-depth mining and verification of real needs

Products are the carrier of demand, and demand is the starting point of all businesses. The emergence of new products must be to meet a certain demand, but the demand can be divided into authenticity and external factors. For example, Puer tea is a product but the demand is actually weight loss, and this demand can be met by many products, or the deviation of feedback will cause Lead to misjudgment of demand, and ultimately affect the success rate of product development and marketing.

Finding real needs requires not only surveys and interviews to collect information, but also usability testing in the cheapest and fastest way to correct mistakes. Usability testing is the most important requirement verification before the product is officially released and before mass users use it. Without this requirement verification, the new product cannot define the problem, and in principle it cannot be launched, and there will be a greater market risk in the forced launch.

The in-depth exploration of real needs is the premise and process, and the verification of new products is the last link before listing. In particular, usability verification is the most critical. This is a kind of reverse thinking, allowing users to prove whether there is a problem with the product and solve it as soon as possible. From the perspective of the product chain, if there is a problem with this starting point, the new product will undoubtedly fail.


2- Product positioning deviation and product design defects

Although products are created based on needs, there are too many products that can meet the same needs. If you want new products to be competitive and have a good market share, you must make the product the first in a category It is the best choice. This is product positioning. The essence of positioning is to create a new category based on demand.

In essence, product positioning is a differentiated competitive strategy implemented to occupy the minds of consumers. If a new product has a positioning deviation, it will not only fail to meet the demand, but will often face more competitors, leading to an increase in competing products in the market. If its own product operation capabilities are not good, it will also increase the probability of failure of the new product.

A good product itself will attract users. It is delicious, easy to use, and interesting. It is a kind of recognition of the product. This recognition comes from the good design of the product. Such as ease of use, integration of technology, implantation of intimacy and emotion, etc. In fact, no matter whether it is a physical product or a service product, good product design is needed to shorten the distance with users, and the marketing value of a poor product is unsustainable.


3- Poor product operation and customer service capabilities

When it comes to operations, product management, customer service, and inventory maintenance come to mind. In fact, the product itself is the operation. For example, many Internet products or service products are not delivery products in convenience stores. The launch of operational products is actually the beginning of everything, and the follow-up will be completed through content, activities and user operations.

Customer service is also a very important ability. For example, customers are stratified and need to be subdivided. However, if you use one marketing method to face all customers, you will fall into the trap of product equalization, so that the product cannot meet the demand, and cause every Customers in every segment are dissatisfied, and this kind of service capability will eventually be fed back to new products, and both market shrinkage and customer complaints will appear.

User operation is a part of product operation, and customer service is actually a part of user operation. For example, the customer stratification and segmentation mentioned above is actually the maintenance of the user structure. By analyzing the dimensions of consumption frequency, consumption amount and the latest consumption, we can distinguish the importance of customers, so as to integrate products and users more reasonably. , which is actually the basis of the membership system. Poor product operations and customer service also contribute to the failure of new products.


4- Others and Summary

In addition to the reasons for the failure of new products in the above three sectors, the price, channel and promotion plan of the product are also very important. The origin of this marketing 4P model is actually the main body of the market strategy, but more dimensions need to be considered in the formulation of the strategy. Internal and external factors, Such as new product promotion methods, product descriptions and market operation methods.

In addition, the pricing of new products is also a systematic strategy. Different products have different methods. For example, the recently introduced policy restricts the platform to kill familiars, which is essentially a kind of price discrimination pricing. But in a transparent market, that is, a market with equal information, it is necessary to avoid differential pricing, which will lead to a gradual reduction in pricing, a decline in profits, and failure of new products.

Finally, there are many reasons for the failure of new products. In addition to the above-mentioned basic factors, corporate strategy, business model, management structure and operating system will all affect the success or failure of the product. Therefore, to avoid failure, it is necessary to have systematic operational thinking and a single problem The solution may temporarily avoid the risk of failure, but it cannot be systematically and continuously improved, and product failure will happen sooner or later.