Question

Select a problem that a firm might have bringing out a new product or service and discuss how the firm could overcome that problem.

need own words with no plagrism

Answer 1

On releasing a new product into the market, there will be some key challenges that the firm will face . They are

• Spending more time in marketing
• Providing viability to the products
• Leading customers to new product
• Managing initial price of product.

Establishing the initial price :

After releasing a new product, if the firm fix the cost as too high, no one will show interest to buy the product. Because they think of spending more money in something else. If the firm fix the cost as too little, it may incurr loss. So the firm should not either fix cost as high or as low which may lead to loss.

Solution to overcome the above challenge :

Fixing the price is not about thinking how much maximum amount the customer can spend. It is about what amount will make the customer to look into the product and show interest towards it. Cost should be implemented so that the features of new product will be compared with previous model and cost of new product can be fixed by taking reference cost of previous product.

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