Question

Why do 70-90% of new products fail?

A) Lack of market research and understanding of customer needs
B) Inadequate marketing strategies and promotional efforts
C) Insufficient product differentiation and innovation
D) Poorly executed product development and testing processes

Answer 1

Product failures often result from inadequate market research, insufficient marketing efforts, lack of product differentiation, and poorly executed development processes.

Step-by-step explanation:

The main reasons why 70-90% of new products fail can be attributed to a combination of factors including poor market research, inadequate marketing, insufficient differentiation, and poor product development. Conducting thorough market research is crucial to understand customer needs and preferences, which if neglected, can lead to products that do not align with market demands.

Adequate marketing strategies are essential to generate awareness and interest in the product. Products also need to offer unique features or benefits that distinguish them from competitors; otherwise, they may not stand out in the crowded marketplace. Furthermore, a well-executed product development process, which includes testing and refinement, ensures that the product meets quality standards and customer expectations.