6. Are there any general rules allowing us to minimize the risk that a new product will not be accepted by the marketers?
I found out from the internet that this question is a section in the below book.
“According to Kotler
Page 59; in innovation section
It’s very new book published in this year, 2005.
But I don’t have the opportunity to read that book, so I tried myself to analyze the question and find out more idea from the other book. Such as
“A framework for marketing management”
I’ve got that fact:
– Thousand of products are offered for the first time each year, less than 10 percent are entirely new and innovative. (Allen and Hamilton)
– From the research found that Failure rate, 95 of the US and 90 of the European.
Then I realize that some of reasons of the failure in new products are
– high-level executive pushes a favorite idea in spite of negative market research finding;
– the product is incorrectly positioned, ineffectively advertised, or overpriced;
– development costs are higher than expected;
– or competitors fight back harder than expected
And the succeed found by Madique and Zirger are –
– The firm has a better understanding the customer needs;
– higher performance-to-cost ratio;
– a head-start in introducing the product before competitors;
– higher expected contribution margin;
– higher budget for promoting and launching the product;
– more use of cross functional teamwork;
– and strong top-management support
The other important things are about the reasons why marketer does not accept the new product. Frankly said, I’m not marketer but if I were, the reasons may be only “I can’t push the dead born alive”. The deadly product could not alive as usual, and the factors made the death of newly product are being an unnecessary product in the wrong place at the wrong time, the lack support, the lack-of advertisement budget, no contribution from the company, and the other over estimation factors.
Very new product –
From the fact and analyzed data, I formed the general rule myself.
- Product must be newly introducing to the market
- The company (top-management) must support the marketer
- The formal, general expectation of company must be reasonable.
- The company must have to understand the customer needs well.
- The newly products must have the benefit themselves.
7. What do you think is better marketing investment for a company in Thailand, innovation or improvement?
For me only without any information related, I am considering on the term of innovation first. I may pay more interesting on the innovation marketing in Thailand such a CRM, IMC, etc. I think it will benefit to the company in investment in the future.
But look backward to the current investment of marketing; further more most of the Thai people who relate to the company or the product are still the old one customer. The existing products are not needed the new attractive marketing strategy or advertising. Some improvement of the marketing may be enough.
I’m surely my answer is now only a choice of innovation. The purpose of marketing is mainly to gain more customers. The innovation marketing in CRM could serve this purpose as well as the IMC in advertising the product. ETC. Any innovative marketing could serve all styles of the existing (old one) marketing schema. They serve all purposes and can be better than the existing. Consider only for ROI, it could return fast enough to make an investment decision. Further more the profits; also benefits that gained may a lot more the old one in the same amount of investment money.
Edward B. Roberts (2002) ‘Innovation – Driving, Product, Process and Marketing Change’, MIT Sloan Management Review
Alfred Kleinknecht and Pierre Mohnen (2002) ‘Innovation and firm performance – econometric explorations of survey data’, PALGRAVE
Y. Nayatani, S. Moroto, T. Nakamura (2000) ‘Strategies for Innovative Product Development’, Asian Productivity Organization
W. Punyawongse (2002) ‘Word – of – Mouth: OISHII DESU KA – Tan Passakornatee’, Brand Age Magazine, vol.2 no.12,
Dr. Udonsak Chacleeyawanich (2005) ‘OISHI Brand Extension Strategy’, Brand Age Magazine, vol.6 no.6
Stephen M. Shapiro (2001) ‘24/7 Innovation: A Blueprint For Surviving and Thriving in an Age of Change’, McGraw-Hill Companies
Philip Kotler (2002) “A framework for marketing management” Second Edition, Prentice Hall; 2nd edition
- Q&A With Chris Maher: Marketing and Our Souls by Ann Handley
- Five Steps for the Era of Marketing Convergence By Karen V. De Asis
- Steve Jobs, Apple & the Limits of Innovation By Carleen Hawn
- Kotler in marketing; how to create win and dominate markets by Philip Kotler
– Etc. from Google
Refer to the: Five Steps for the Era of Marketing Convergence
By Karen V. De Asis
I found out this article:-
In the mid-1990s, two noted corporate strategists, Gary Hamel and C.K. Prahalad, gave the world the term convergence. It is the strategy of putting together disparate or separate products and services to come up with a new value offer to meet the needs of the target market.
Convergence is a process that entails a lot of innovation and new ways of thinking out of the box. Gary Hamel once said, “The greatest rewards go to companies that create new business models, spark new ideas, new markets, new sources of revenue based on changing technology, demographics and consumer habits.” C.K. Prahalad, added “Today’s customers are more informed, networked, active and global.
These new market characteristics have led to a new form of value creation, where value is co-created by the both the company and its customers.” These two great strategists have underscored product success only when customers are involved in their development.
Steve Jobs, Apple & the Limits of Innovation
By Carleen Hawn (email@example.com )
Winning in marketing:
Besides winning business practices, is there a set of winning marketing practices? One frequently hears of one-liner formulas that promise marketing success. Here is one of the more prominent one-liners:
7. Win through Product Innovation
A frequent exhortation is “Innovate or Evaporate.” True, some great innovative companies, such as Sony and 3M, have earned substantial profit by introducing superb new products. But the average company has not fared well in its new product introductions. The new product failure in branded consumer packaged goods is still around 80 percent; in the industrial goods world, it is around 30 percent. A company’s dilemma is that if it doesn’t introduce new products, it will probably “evaporate”; if it does introduce new products, it may lose a lot of money.