marketing64

CLASSIFYING NEW PRODUCTS
Continuous Innovation
This type of innovation is a simple changing or improving of an already existing product where the adopter still uses the product in the same fashion as they had before. An example of a continuous innovation is now seen in the automobile industry as it continues to change and develop.
- Dynamically Continuous Innovation
Here the innovation can either be a creation of a new product or a radical change to an existing one. Here the consumption patterns of people are altered some. An example of this type of innovation would be compact discs.
- Discontinuous Innovation
This is a totally new product in the market. This is the big idea innovation .In this situation, because the product has never been seen before, there are total changes to consumers buying and using patterns total changes to consumers buying and using patterns.

REASONS FOR PRODUCT FAILURE
1. Market size may have been overestimated.
2. The actual product may have not been designed as well as it should have been.
3. The product may have been incorrectly positioned in the market, priced too high, or advertised incorrectly.
4. A new product may have been pushed though in spite of poor marketing research findings.
5. The costs of producing the product may have been higher than expected.
6. Competitive Actions

REASONS WHY ORGANISATIONS SHOULD INTRODUCE NEW PRODUCTS
1. If consumer tastes are changing so that existing products no longer satisfy their needs, as is the case with any product that is susceptible to fashion or style preferences.
2. If the environment has changed so as to create new needs in the market; out of town shopping centers’, for example, have grown in popularity as more and more people become car owners and traffic restrictions make the high street an increasingly difficult and expensive place to park.
3. If competitors are actively developing new products or technologies that will accelerate the decline of existing products.
4. If growth potential in a market is limited by the total size of the market or the intensity of the competition.
5. If a firm has a portfolio of products that are generating a lot of cash at the maturity stage of their life cycle.
6. If competition in the market is likely to intensify (i.e. patent due to expire)
7. If production capacity is under utilized (i.e. seasonal demands)
8. If legislation threatens to curtail the marketing of existing products in the future.