When introducing a new product into the market there are many factors that must be considered. Two important factors are product diffusion and the product life cycle.
Product diffusion is how widely consumers use and accept the item, while the product life cycle are the stages a product goes through pertaining to growth and revenue. For a successful product diffusion, a company must have a prominent marketing campaign and an established brand identity, relying on the trust of loyal customers. This trust will have been established before with other products, setting the customers’ expectations for the quality of your business.
Once there is proper diffusion, a business can monitor the status of their product in its life cycle. There are four stages in the product’s life cycle; introduction, growth, maturity, and decline. Depending on which stage the product is in, a business can change their strategy to meet revenue goals. Introducing a new product into the market can be a risky venture as they are costly and rarely succeed – only 1 in 50 new product ideas make it to the market, and a third of all products that make it to the store fail within six months. Therefore, it is essential to do proper market research and have a well thought out strategic plan that can be modified to better suite market change. Even though new products ideas rarely succeed, the ones that do are incredibly successful. It is important to take risks because it can lead to a favorable outcome.
Do you have a new product idea to release to the market? Bubu and Friends’ Sales and Marketing Services can produce the right outcomes for you. Contact us here for a free online consultation!