Question

Question is related to essential of marketing:

1. what are the main reasons why new products, services or ideas fail?

2. provide an example of a new product failure and the reasons why you think it failed and to be prepared to discuss your answer?

Answer 1

Answer 1- the main reasons for the failure of new products or services are given below=

Products or services are developed without considering the demand and requirements of the customers.

Inappropriate or insufficient marketing research before developing the product or services

There may be some errors in the concept development or functioning of the products or design errors

The marketing team is not able to market the product or idea effectively

The cost of production makes the product out of reach of the target customers

The increased competition or change in the tastes and preferences of the customers.

Answer 2= The leading Indian automobile manufactures Tata motors launched the world’s cheapest car named Tata Nano and it can be seen as the failed product due to the following reasons=

On one side the focus was on decreasing and controlling the price of the product but it resulted in a very cheap looking car lacking various amenities which are expected in a car.

The company considered only the price while developing the car but in reality, there are many other aspects of the products that play a role in its success

Despite world level fame, the company did not do any extensive marketing exercise and changing the perception of the customers

The car started to have the issue of performance and noise that created a lot of problems for the buyers.