The Variables that
influence New Product Success. Advances in Management; Oct2011, Vol. 4 Issue
10, p26-32, 7p. Business Source Complete. Web 7 July 2012
The purpose of the
article that I am writing about is to explain the extent of research a company must
complete to introduce a new product into a market. Many companies introduce new
products into markets and have failures with the product. “Success rate of is
only 60%-70% across industries” (The Variables that influence New Product
Success). With this kind of success rate of new products across industries all
organization must make all efforts to make a new product be successful. If an
organization has a failure in its new product the company could lose money and
reputation. The article explains what all factors an organization must research
and accomplish to help a new product succeed in a market.
The authors of the
article came to a conclusion of 24 variables that can affect a new product in a
market. The authors did their research through census surveys to top management
of organizations and also surveys of consumers. When the authors got the
surveys back from the top managers and consumers the authors took the surveys
and made a statistical report of the 24 variables. With the variables in a
statistical report the authors were able to rank which variables had the
biggest impacts on the new product being successful in a market.
This is a good article
for all employees including upper management to read because if a manager wants
to introduce a new product into a market and be successful. If an organization
follows what the authors found in their research the new product that is being
introduced will have a better chance of being successful. When a new product is
introduced it can be a product that makes the organization very successful or
can take a chance in making an organization fail. All managers must be able to
determine how and when a new product is introduced into a market.
Link to article
http://libproxy.uhcl.edu:2057/ehost/pdfviewer/pdfviewer?sid=59c00bae-7d70-4785-a8bc-0d7823ce7b1e%40sessionmgr10&vid=20&hid=9
This article is good for managers as you stated because if they want to offer a new product into the market, the articl supplies data that can assist with making sure the product is successful. Having a resource like this is key when starting out.
ReplyDeleteI believe so also Mellisa. I have seen my fathers company introduce a new product to a race track and it took alot of research to determine if it was the correct time to introduce the product.
ReplyDeleteYou would think that more companies would spend more time and money in introducing their product at just the right time considering the success rates that were presented in the article. It seems that many companies nowadays are in such a hurry to make a profit that they may not realize the product they put out there may not be the best one for the consumers.
ReplyDeleteStatistical analysis is a very useful tool. I bet companies really invested a lot of time and energy studying the variables that ranked of highest influence among the 24. I think that is the most interesting thing about this article. I really enjoy when statistics(quantitative analysis) can help a company make decisions.
ReplyDelete