Critical Success Factors For New Product Development Essay

Critical Success Factors For New Product Development Essay

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This essay is about what are the critical success factors in new product development. This will cover what the latitude say about the factors that determine new product success. The five most important success factors will be listed and evaluated. Conclusions will also be given as to what the overarching issue might be for executing the success factors.

In today’s markets there are high levels of Competition in most areas. The introduction of new products is commonly viewed as a medium for profitably and growing the businesses (Yenipazarli, 2015). Yet market success remains rare and new innovative products fail at high rates. According to Tripathi, Guin, and De (2012) seven out of ten products launched in the market fail, they also stated that most of the time it is the fault of the company, due to poor assessment of the real needs of the customers and a view that is focused on profit. Through out development and marketing of new products there are many critical factors for success. The five factors believed to have the most validity in success are, targeting the market, market testing, adequate resources, market access and quality new product teams.
Targeting the market is very important for new product success. Lynn (2011) suggests that the mass market consists of many groups, each with distinct needs, desires and relatively characteristics. Crawford and Di Benedetto (2011) states that markets are so complex that one product cannot go close to meeting all their needs. Therefor marketers attempt to identify the market segments that the product would appeal to, and focus marketing activities to position the product so it appeals to the targeted segments (Lynn, 2011).
Market testing/trial run allows for the best sales forecasts a...

... middle of paper ...

...insight in to what the business is doing. With Obtaining resources there are issues, young businesses run into the most problems with this area, because they have little to offer in security, therefore at a strong disadvantage because lenders are less willing to part with their resources.
Through out new product development and marketing there are many success factors which have been shown, the factors with the most importance have been seen to be targeting the market, market testing, adequate resources, market access and quality new product teams. Example of two New Zealand business that have successfully brought in new products are Lewis Road Creamery with the chocolate milk in associations with Whittakers and Gallagher with their SmartFence. With the success factors there is overarching issuers which effect the process of achieving the critical success factors.

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