With the aftermath of globalization, companies are carefully thinking about the best ways to extend their product and service offering. Thus, product development strategy is critical for their success. Yet, many companies are in defensive mode and merely want to maintain the position in the market place.
However, staying in a holding position is a definite way for companies to be left behind. Innovative thinking that allows for product/service growth is a too sure way for sustainable success. In today’s discussion, we will explore the importance of product development for the growth of businesses, especially in a competitive market.
Launching into new product offerings is not easy. According to one market research, approximately 75% of consumer-packaged goods and retail products fail to earn even $7.5 million during their first year. Harvard Business School Professor, Clayton Christensen, who is the world’s foremost authority on disruptive innovation, suggests that the failure rate of new products may actually be as high as 95%. Product failure rates relate to the number of products that are launched commercially but fail.
Geoffrey A. Moore, the author of Crossing the Chasm, maintains the challenges of product deployment: “… the less successful product is often arguably superior. No content to slink off the stage without some revenge, this sullen and resentful crew casts about among themselves to find a scapegoat, and whom do they light upon? With unfailing consistency and unerring accuracy, all fingers point to—the vice president of marketing. It is marketing’s fault!” Thus, new product development is a risky proposition to senior executives making these critical positions as well as the organization as a whole.
Dr. Daryl D. Green is the Vice President of Marketing at AGSM Consulting, LLC, where he provides strategic planning, marketing and product development to emerging and existing businesses. In 2016, Dr. Green retired from the Department of Energy, where he had been employed for over 27 years in the DOE’s Environmental Management Program. He is a much sought-after speaker and award-winning author of several textbooks and reference books, including Job Strategies for the 21st Century. Dr. Green has a national digital marketing certification and is also a respected researcher in his field of study, which focuses on culture, decision-making, leadership, management and marketing.
Dr. Green received a B.S. in Mechanical Engineering from Southern University, an M.A. in Organizational Management from Tusculum College, and a doctoral degree in Strategic Leadership from Regent University. He is currently a respected university professor at Oklahoma Baptist University, who has been noted and quoted by USA Today, Ebony Magazine and the Associated Press.