Reasons why New Products Fail on the Market

Introduction

According to Coopers’ research of 2001, there are many reasons that lead to failure of new product in the market. Insufficient market research and analysis are the leading causes, why many new products fail since developers over look the underlying issues on the market demand. In addition, Cooper in his research found out that, lack of critical analysis, identification of real market surveys on trends and preferences of target customer, lack or scanty piloting or excitement and optimism are also significant mistakes that firms make in developing a new product. Consequently, I would like to agree with Cooper to some extent on research and analysis argument, because without the understanding of the customs’ preference and taste one is unable to come up with the best product that will satisfy the customers’ demand (Cooper 2011, p. 117).

Discussion

However, on the other hand, I would like to disagree with Cooper in terms of the research and analysis of the market, as far as the launch of new products is concerned. Cooper did not emphasize on the issue of customer value. His focus relied a lot on the target market, the new product and environmental factors. Proper understanding of the customer value in reference to preferences and buying patterns are key determining factors to the success of the product. The customers’ habits, fashion, trends among others that Cooper did not mention in his research, should be the centre of focus because the customer is the end user (Kotler, Kartajaya & Setiawan 2010, p. 82).

Secondly, technical problems such as the design and the production process involved, if not maintained, may result in producing products which are faulty or have many defects. The design must be done systematically with keen interest in every single bit of product; the engineering part of the product should not be overlooked or over emphasized as this leads to faulty products. While the idea of marketing, selling and promotion is vital in making sure that the best product becomes the best in design, Cooper did not mention anything about creativity and innovation of the product. Although, he was able to bring out the issue of marketing, he did not realize that innovation is vital in ensuring the success of launch of new products.

Technology is another factor that Cooper overlooked in his research. Technology is an extremely crucial factor in terms of invention and development of a new product. The insufficient marketing effort is yet factor that leads to market product failure in the sense that most firms do not put enough emphasize on the marketing tools e.g. promotional activities, or marketing and selling of the new product (Donnelly 2010, p. 87). Creating awareness through the aforementioned marketing tools is extremely valuable, according to the  research of Cooper. The reason is that the only way that people take an interest in knowing what the seller or what the promotion is about, is when there is an advertising or marketing campaign organized, which would lead to increasing chances of sales. Cooper concluded that the assumption by most of firms or managers that the product would sell itself is a misleading concept, since his research clearly showed otherwise (Hollensen 2010, p. 67).

In as much as I would agree with Cooper regarding the insufficient market efforts, I would also disagree with him in the issue of organization and work force. Human resource overrides all other factors in the sense that, if a firm requires to bring a new product into the market, it must look into its personnel and its capability to deliver, their skills, welfare, capacity, specialization and division of labour. This is a fundamental factor which if ignored will lead to low quality product and finally product failure. Every firm should ensure that its personnel are well taken care of first as their welfare determines their productivity and efficiency (Kotler et al 2008, p. 50).

Bad timing is also a critical factor to consider while developing a new product into the marketplace. Cooper observed that, within a remarkably short time, tremendous products are released into the market. Therefore, if surveys are conducted say, for example, within a period of 3 months, then by the time that the product is due, other competitors would have released something similar into the market. Furthermore, the timing of the customer preferences is crucial in ensuring that fashion and seasons are put into consideration. The issue of time is a critical factor. However, time factor is related with other external factors including the firm’s strategies in ensuring that the target market demands are met before it is too late. Failure to do this may lead to market share reduction substantially and hence result in a product failure. Other factors that Cooper raised include; the higher costs than anticipated and competitive strength or reaction by firms to produce or release a new product onto the market. The products are identities of the company and hence they show the true company values and objectives. Given the segregation and the originality, all the other sector players will always tend to be in the forefront, in order to come up with superior products. This is doomed hence ensuring that the innovator only enjoys the rewards of its products (Kotler et al 2009, p. 78).

Patent Rights in the US

A patent is an intellectual property or right to exclude others from making duplicates, utilize, advertise, put on sale, or export without prior knowledge from the owner of the patent. This restricts malicious persons from violating other applicants' patent rights. A patent is requested by filing an application in writing at the relevant patent office provided. The person applying for the patent rights should be the originator or designer of what needs to be granted patent rights. Detailed information for an experienced individual in the art of machinery must be provided to make use of the invention appropriately. The usefulness of the invention and or the technical mishaps associated with the invention is stated clearly as a guide to the user(s). The inventor can also provide drawings as a backup to support his invention (Ishikawa & Tsujimoto 2008, p. 98).

Patents can be used to protect Intellectual Property (IP) through the establishment of the statute of common law, which has provisions to contracts and torts of law. The statute creates and rules patents, trademarks and copyrights hence representing ownership of the original idea of a person such as the artistic works like paintings, music books, photographs, and movies among others. Speculators are people who can easily mess the future products of the company. The people ought to be positive and honour their means of operations and be extra innovative and establish the absolute originality of the work of their hands. Patenting is totally reliable and needs the attention of everybody and all to adopt a sincere pace of establishing the new products (Cooper 2001, p. 72).

The process of giving an applicant the patent right after producing the entire requirement and the extent of the exclusive rights, which is established between countries according to national laws and international agreements, leads to ownership. Ideally, for one to claim patent right for a certain invention, he/she should meet all the set rules, and relevant requirements to warrant a patent such as a novelty. All the rights given to an applicant in the US, in general terms, is the right to prevent others from using an invention inappropriately and without prior permission from the patentee. The conditions are clear and any breach is offense, which is punishable by law. People always obey the rule of law and simply being innovative. New products are a symbol of continuity and increase of sales in the company. This boost the revenues hence ability to hire more employees. The situations surrounding the loss of the patent right may include the lack of immediate registration of the patent soon after initiating it. Some people who tend to be ahead of other takes advantage of an invention and pre-register the patenet rights to reap from where they have not sowed. Secrecy should be observed and reduce the number of disclosure of all the patents information so as to have new products in the market under inventor’s trademark (Hutt & Speh 2009, p. 60).

The patenting country ensures that the patents are available for an interested party in any state provided it has established the socio-economical, trade or any other ties with that state. These set the standards for patents and all the anticipated requirements. The requirements vary from one geographical region to the other. The applicant has to wait for the patent to be granted before it is enforced. Although not effective, it can serve as a warning to the potential infringers that, once the patent is issued, they are liable for any caused damage. The damage can be extremely severe; hence it is necessary to adopt the innovations under control. The community is obliged to take care of the thoughts, actions and ways of work, which determines the value of products, in the society. The conditions are highly critical, and all people have to be informed (Stark 2005, p. 68).

Conclusion

The legal effect of a patent takes place when the application is considered to have met patentability requirements provided for in the law. If the patent does not comply with the standards, the applicant is advised to revise the application. Upon presentation of these requirements, the applicant should keep the patent right in force by paying the stipulated maintenance fees.