Every marketer takes different measures for wide promotion and higher acceptability of their products among public. Despite all these efforts, many products eventually fail whereby they do not generate expected returns for business. This failure of product may be the outcomes of multiple reasons which are both internal as well as external to firm.
Some of the common reasons responsible for product’s failure in market are as discussed below: –
- No product point-of-difference: Every new product must necessarily bring something new to the market in order to win initial trials and then ongoing repeated business. The prospects get persuaded to try and buy a new product by considering its additional benefits and incentives. A product will eventually fail in market without any real point of difference from competitors. In order to have a better acceptability rate of product among consumer, it must have some distinct features in one way or another.
- Bad product quality: Quality of the product offered for sale plays a key role in its success or failure in market. Customers are not willing to purchase such products which are not of adequate quality. The product standard must justify the cost paid by people for buying it.
- Wrong timing: Introduction of product at right time is must for its success in market. A product should be launched during the time period when consumer demands are at highest. When unsuitable time is chosen for its launch, then the demand seen during its trail phase may eventually vanish by the time it is actually launched in commercialization period. This way, the appropriate timing plays a strategic role in success of product.
- Higher price: Price factor is another major reason for non-acceptance of product among public. Highly priced products are not affordable by each section of market. Rise in production as well as distribution cost eventually makes product price higher thereby making it non-purchasable by middle- and low-income earners.
- Product deficiencies: Many times, the product gets failed in market due to their inherent deficiencies. Technical defects are most common type of decencies found in product. They can be removed by engineers and product technocrats who posse’s skill of proving best laboratory products via over-engineering. Defective products lose their market potentialities are not preferred by clients even if defects are removed.
- Faulty distribution policy: Right distribution policy of business enable in supplying goods at right time and at right place in economical manner. Customers are more likely to buy product when it available at right time i.e., when it is needed most. A faulty distribution policy may result in many problems like unavailability of products at time of their requirements, causing rise in prices and so on.
- Extent of competition: A success or failure of business products is also influenced by extent of competition prevailing in market. There is no difficult for a monopolist in marketing his products. Larger the number of competitors in market, more will be the alternatives available to buyer. Therefore, under such scenarios, if a marketer does not bring satisfactory product for customer then it will fail.
- Poor after-sale service: Quality of after-sale service provided by brand is taken into consideration by peoples while buying their products. This is most commonly included by marketer dealing in durable products like cars. At the time of making sales, they are polite when customer approaches them for service later on, they may show indifference.
- Non-availability of spare parts: Availability of spare part matters a lot in case of durable goods such as televisions, washing machine, air conditions and vehicles like car or bikes. If their parts are easily available, customer prefer them most. However, the customer gets frustrated by the unavailability of spare parts. They will not recommend such products to their family or friends.