¶ … new product requires several marketing considerations. There are many negative factors to product development that must be dealt with. There are also several factors that promote successful product development. Finally, product positioning and pricing are two important considerations.
Negative Factors
One of the negative factors is uncertainty. This is especially true if the product is not only a new product for the organization but also a new product for the industry. One example that shows this is the computer software industry. The uncertainty is present because of its nature as a new and pioneering industry. The industry is rapidly changing and companies in the industry must be continually innovative and make decisions based on limited information. There is no certainty in this industry that a successful company will remain successful. To give an example, we can consider Apple-Macintosh. Apple-Macintosh had first-mover advantages as the first to develop a graphical user interface and their technology was ahead of Microsoft's, yet despite this Microsoft became the market leader. This is an example of how the maker of the best product is not necessarily the market leader in emerging industries (Burke, Condron, Conroy, Knol & Nolan.)
The second negative is the high cost of product development. The high cost means that organizations developing new products need to get a return on investment that justifies this high cost. The developer of a product has first-mover advantages, however, as other companies introduce similar products the developer company needs to maintain market share.
The final negative that must be countered is managerial ego. This managerial ego can create problems in two ways. Firstly the manager who started the product development project or who is in charge of it, may proceed with the project at all costs. For example, if accounting information shows that the product will not be financially viable, the manager may proceed anyway rather than accept that their project is unsuccessful. Another way that managerial ego creates problems is if the product is not as successful in the market as expected....
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