What are two common marketing reasons as to why new products fail?

What are two common marketing reasons as to why new products fail?

What are two common marketing reasons as to why new products fail?



New product launches can be both exciting and challenging for companies. However, not all new products achieve the success they were intended for. In fact, many new products fail to gain traction in the market and end up being discontinued. There are several reasons why this happens, but two common marketing reasons for new product failures are inadequate market research and poor positioning.

Inadequate Market Research

Lack of understanding customer needs: One of the primary reasons new products fail is the inadequate understanding of customer needs. Without a deep understanding of what customers want and need, companies may end up developing products that do not address real pain points or offer significant value. This lack of customer-centricity can lead to low demand and ultimately product failure.

Insufficient market analysis: Another aspect of inadequate market research is insufficient market analysis. Companies need to thoroughly analyze the market landscape, including competitors, trends, and potential demand, before launching a new product. Failure to conduct comprehensive market analysis can result in entering a saturated market, facing strong competition, or launching a product that does not align with market trends.

Ineffective target audience identification: Identifying the right target audience is crucial for the success of any new product. If a company fails to accurately identify its target audience, it may struggle to effectively communicate the product’s value proposition and benefits. This can lead to poor marketing efforts, ineffective messaging, and ultimately, a lack of interest from potential customers.

Poor Positioning

Undefined value proposition: A clear and compelling value proposition is essential for successful product positioning. If a new product fails to communicate its unique selling points and the benefits it offers compared to existing alternatives, it may struggle to differentiate itself in the market. Without a strong value proposition, customers may not see a reason to choose the new product over established competitors.

Inadequate marketing communication: Effective marketing communication is crucial for creating awareness and generating interest in a new product. If the marketing efforts are inadequate or fail to reach the target audience, the product may go unnoticed or be misunderstood. Poorly executed marketing campaigns can result in low visibility, limited customer engagement, and ultimately, product failure.

Incorrect pricing strategy: Pricing plays a significant role in product positioning. If a new product is priced too high, it may deter potential customers who perceive the product as overpriced compared to its perceived value. On the other hand, if the product is priced too low, customers may question its quality or perceive it as a low-value offering. Finding the right balance and aligning the pricing strategy with the product’s value proposition is crucial for successful positioning.


Inadequate market research and poor positioning are two common marketing reasons why new products fail. Without a deep understanding of customer needs and insufficient market analysis, companies may develop products that do not address real pain points or align with market trends. Additionally, poor positioning due to an undefined value proposition, inadequate marketing communication, or incorrect pricing strategy can lead to low demand and product failure. To increase the chances of success, companies must invest in thorough market research, identify their target audience accurately, and effectively position their new products in the market.


1. marketingprofs.com
2. entrepreneur.com
3. hbr.org