Do you know that Marketing and R&D is closely related with each other? In this article we are going to find out more about this. Visit http://mstnano.com for R&D service.
Research on new products
New product research aims to apply research techniques to problems related to the development of new products or the modification of existing products. This research is intended to satisfy consumers while making a profit. Click http://mstnano.com to get corporate research done.
The definition of the word product helps us better understand the dimensions of this type of research: … the product of a company represents the promise it makes of meeting one or more needs (physiological or psychological) of the market at a specific moment.
Product research is vital
The profitability of a firm depends on its ability to successfully launch new products on a permanent basis. Companies must produce a number of new products to satisfy the ever-changing tastes of consumers. Businesses following marketing are increasingly aware of the importance and necessity of using research during the various stages of development of their product lines.
Companies that aim to satisfy consumer demand by launching new products on the market focusing mainly in the field of consumer goods. The increase in the number of consumers and the rapid evolution of their preferences have allowed these companies to maintain a high rate of growth and satisfy the insatiable desire for new products.
Research on new products
The preponderance of new product research is primarily related to three factors that lead it to play a leading role in business: the cost of new products, their failure rate, and their life cycle.
Of course, the costs associated with new products are a major expense for many companies. In the US, major companies spend millions of dollars each year on research and development of new products: Procter & Gamble alone spends more than $ 100 million a year on research projects on new products.
The high cost of new products is due to inflation, government restrictions that require more research and development, and increased marketing decisions. This cost seems even greater considering the failure rate of new products.
The failure rate:
The failure rate of new products is the second factor explaining the growing importance of research on new products. Although the estimates of failure rates vary widely, it can be said that the launch of most of the new products leads to failures. As a general rule, it is estimated that this rate is between 30% and 90% and varies according to the product development phase.
The main cause of failure of new products remains the lack of relevant market information i.e. the inadequate information system. These include technical problems particularly in the nano technological industrial products sector and the decision to launch the product on the market at an inappropriate time. The primary goal of new product research is to reduce the failure rate through research and testing before they are widely marketed.