According to Mason and Rath, "Test marketing means marketing goods experimentally to
consumers in several carefully selected areas before releasing them on wide scale".
During this stage, the new product is actually tried out in one or a few selected geographical
areas to ascertain the feasibility of a full-scale marketing programme. It is only on the basis of
the results of test marketing that the firm decides to undertake the large-scale manufacture of
the new product or give up its manufacture.
6. Commercialisation or Market Introduction: The last stage in the process of planning and
development of a new product is the commercialisation or market Introduction.
Commercialisation or market introduction involves the launching of the product with a full-scale
marketing programme. Commercialisation of product idea refers to the process of finally
deciding the product profiles, building up the requisite manufacturing and ancillary facilities and
appropriate marketing programme in the background of favourable and positive test marketing
results and introducing the new product in the market for sale.
CONSTRAINTS IN DEVELOPING NEW PRODUCTS OR REASONS FOR THE FAILURE OF
NEW PRODUCTS
To develop a new product successfully is not an easy game. One has to make a lot of exercise
to minimize the rate of failure. There are a large number of factors leading to failure of
innovation. As per the rough estimate, in developing countries, more than half of newly
developed products fail. Same is the case in developed countries. The fundamental question is:
Why does a new product fail? Which are the reasons leading to a higher rate of failure?
We may find following causes for failure of new products:
1. Targeting the wrong market: As we all know that products are made according to the
expectation of customers, but somehow if it marketed in non-sustainable environment then for
sure product is going to be fail.
2. Poor quality of product: If the product is not made according to the expectations of user or it
is not user friendly too then there are chances that it might fail in the market.
3. Customer do not exist: Suppose a product is made according the competition in the market
but still failed no matter how cheap is that. It might be possible that there are no customers for
that particular product.
4. Poor implementation of marketing plan: May be marketing plan has not well established to
promote the product. It might be possible that the product reach is significantly less. Sometimes
if the strategies are not well planned to execute then it could to product failure.
5. Lack of product uniqueness: Sometime even if the firm made the product according to the
expectation of the customer but it lacks in uniqueness. This is most important feature one
should keep in mind that product should be made according to the market requirement along
with the uniqueness.
6. Product deficiencies: Product is developed with full uniqueness but still has some features
which are not responding properly as compared to competitors. It might lead to product failure.
7. Lack of demand: Suppose market is not demanding tha particular product which one has
made. Then at that particular point, your product is not going to survive in the market no matter
how much your product is best and cheap.
8. Higher price of the product: No matter how great our product is, if its price is more as
compared to competitor then there are large numbers of chances that our product is going to fail
for sure. As it is the mentality of the customer that if i am getting the same product on low price
then why would I endly go for other product.
9. Inherent defect: There may be an inherent defect in the product, which may affect its market
potentialities. These kinds of products may not be preferred by the buyer even if the defect is
rectified later.
10. Heavy capital investment: It is one of the major be problems in developing new products.
Development, the production, and marketing of new products need a heavy investment. Many
firms are afraid of new products due to inability to invest the huge fund.
11. Dynamic nature of market: Due to dynamic nature of market, a new product has a shorter
life span. A product introduced may not serve the market effectively for a long period of time.
Before it reasonable establishes, it is replaced by the newer products. Competition has
dominant role in this regard.
12. Small Market: Fragmented or small market is another problem leading to failure of new
products. Due to small market or limited market, heavy expenses cannot be recovered.
