Marketing Philosophy and Strategy

Marketing Philosophy and Strategy

Abstract

Firms are likely to stagnate if new products are not developed. However, the companies that successfully develop and introduce new products in the initial phase can enjoy long term market dominance as a result of new market development and insubstantial rebuttal by competitors (Crawford, 1988). Most of the new customers have started opting for low end cheap BlackBerrys at bargain prices. In the eyes of analysts BlackBerry failed to timely recognize the importance of vertical model of integration, content and services. Adiat Disu, a native of Lagos, Nigeria and a young entrepreneur in the USA promoted economic growth in Africa. She decided to introduce her own showcase with the realization that no doubt the traditional African designs have still got their own value but it needs to evolve into modern styles and luxury brands that has an attraction for the global market in the fashion industry. Novo Nordisk faces a challenge upon approval of their new product, DEGLUDEC, an injectable long acting insulin for type 1 and 2 diabetes, to make its successful launch in an overcrowded market for diabetes medicines.

Introduction

Development of new product is considered life line of any company but it is full of substantial risks and challenges in today's highly advanced technology oriented market. However, the risk- takers or entrepreneurs always see opportunities in it to reap benefits from the partially tapped or untapped market segments. The rate of failure to invoke desired response from new product could be as low as 33% (Antil, 1988) or as high as 90% in new grocery products which are recalled from the market in the first year of launch. The other factors which have augmented the potential risk include shorter product life cycles, improved communication, advance technology and corporate demands to maximize profitability (Rosenau, 1988). Marketing gurus are strongly of the view that if you stop growing, you start dying and decline in market share is inevitable if new products are not developed and launched by the company. The companies are likely to stagnate if new products are not developed. However, the firms which successfully develop and introduce new products in the initial phase can enjoy long term market dominance as a result of new market development and weak rebuttal by competitors (Crawford, 1988). Delayed response to the new product introductions by competitors may end up with late market entry with erosion in market share and profitability (Kotler, 1988).

Discussion

Challenges in New Product Development

The current challenges associated with new product development are summarized as under:

Organizational Structure

Market Orientation

Scarcity in New Product Ideas

Market Fragmentation

Social and Governmental Constraints and Policies

High Developmental Cost

Cash Crunch

Accelerated Developmental Time

Shorter Life Cycle of the Product

Global Recession

Fear of Uncertainty in view of Competition

Cultural Diversity

Global Challenge 1: Research in Motion (RIM) & BlackBerry

Research in Motion is the Canadian based company that makes iconic smart phones including BlackBerry. The government of the United States is the largest customer of RIM's BlackBerry and RIM services a large number of the ...