The document discusses causes of new product failures such as overestimating market size, design problems, incorrect positioning or pricing, and high development costs, as well as competitive actions. It also states that to create successful new products, companies must understand customers, markets, competitors, and develop products that deliver superior value.

2. NEW INDUSTRIAL PRODUCT
DEVELOPMENT
• CLASSIFICATION OF NEW PRODUCTS-
•

3. Causes of New Product Failures
• Overestimation of Market Size
• Product Design Problems
• Product Incorrectly Positioned, Priced or Advertised
• Costs of Product Development
• Competitive Actions
• To create successful new products, the company
must:
– understand it’s customers, markets and competitors
– develop products that deliver superior value to customers.