Management and Organizational Studies 2320A/B Study Guide - Quiz Guide: Sales Promotion, Business Analysis, Value Proposition

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Reasons for new product failure: overestimation of market size, poor design, incorrect positioning, wrong timing, priced too high, ineffective promotion, management influence, management influence, high development costs, competition. Advantages: less expensive, faster, restrict access by competitors. Disadvantages: commercialization: is the introduction of the new product, not considered as reliable and accurate due to the controlled setting, when to launch, where to launch, planed market rollout. Offer new or improved services to buyers. Cut prices to attract new users and competitor"s customers. Launch a better advertising campaign or aggressive sales promotion. Low cost per customer: declining sales, declining profits, customers are laggards, declining number of competitors, carrying a weak product can be costly to a firm. Companies must decide what to do with declining products: maintain: the brand without change in the hope that competitors will leave the industry, harvest: the product by reducing various costs and hoping that sales hold up.