Reasons Products or Services Fail
1. SALES BELOW EXPECTATIONS
‣ No differential advantage
‣ The product or service does not solve a problem or issue
‣ Poor market definition
‣ Markets are becoming smaller even though we can reach global markets
‣ Lack of channel support
‣ Getting shelf space in Walmart is no easy.
‣ Poor company fit
‣ RIMconsumer vs. business markets
‣ Poor understanding of customer's needs/Lack of marketing orientation
2. PROFITS BELOW EXPECTATIONS
‣ Production costs underestimated
‣ Low sales volume –Not high enough to cover investment and fixed costs.
‣ Selling costs too high
‣ Channel Margins
‣ Development cost too high
The uncontrollable Factors
‣ Economic factors, e.g. devaluation of a country's currency, recessions, oil price shocks etc., are beyond the control of the firm
and its marketing executives. Changes in the economic environment can, however, have a profound impact on the
development and implementation of the firm's marketing strategy.
‣ Interest rates Housing, Durables, Autos
‣ Canadian Dollar relative to the U.S Dollar
‣ Macroeconomic Conditions
‣ Interest Rates
‣ Housing prices & affordability
‣ Investments and Spending
‣ Consumer Income
‣ Gross Income
‣ Disposable Income
‣ Personal income tax reform
‣ HST Tax implications
‣ Discretionary Income
‣ Technological factors changes in technology can also have a significant impact on the firm's marketing strategy.
‣ Cloud computingimpact on software and hardware Dell and Microsoft
‣ Internet and the proliferation of file sharing services impact on the music and movie industry.
‣ Technology of Tomorrow
‣ Alternative energy sources
‣ Apple and portable computing
‣ Google and Cloud Computing
‣ Automobilesfuel efficient technology, autonomous driving=safer cars, hybrids and electric.
‣ Electronic Business Technologies
‣ Electronic commerce
‣ Internet and Worldwide Web ‣ Commercial online services
‣ Social changes such as an increased number of women in the workforce may have an impact on the marketing strategy and
is also outside the firm's control.
‣ Health consciousness Food retailing
‣ Environment P&G found only 10% of North American consumers will accept a trade off such as price or a
performance decrease! 75% will not accept any tradeoff whatsoever
‣ Castaldo, J.. "Green counting. " Canadian Business 13 Oct. 2008: ABI/INFORM Global, ProQuest. Web. 9 Sep.
‣ The Canadian Family
‣ Blended families
‣ Non Traditional Families
‣ Population Shifts
‣ Shift to urban centres
‣ Census metropolitan areas (CMAs)
‣ Regional Marketing
‣ Ethnic Diversity
‣ Changing Attitudes and Values
‣ Value consciousness and WalMart
‣ Work Life Balance
‣ Population Size and Growth
‣ Age Waves
‣ Mature household
‣ Baby boomers
‣ Children born between 1946 and 1964
‣ Generation X
‣ Canadians born between 1965 and 1976.
‣ Baby boomlet
‣ Canadians born after 1977
‣ Competitive the entry of new competitors into the market can force the firm to make widespread changes to its marketing
‣ RetailTarget, J. C