Vankata, you identify the main problem affecting businesses that have introduced a product to the market. The introduction stage of a product can be risky, given that it involves creating awareness. As you state, the introduction phase of the product can fail significantly if a fundamental marketing strategy is not met. During this stage, marketers must clearly identify their target market. Failing to identify the specific market niche for a particular product eventually leads to market failure (Londhe, 2014). It is in this regard that businesses must endeavor to find the right strategy during the introduction phase. The focus should be placed on finding the most appropriate market skills and identifying the demographic characteristics of the target group.
I like the fact that you have identified the fact that businesses should focus on matching the needs of the company with that of the customers. A failing business should, therefore, pay significant attention to whether it is meeting the specific needs of the customers. Vankata, you have also paid considerable attention to the pricing strategies that companies should consider during their initiation stages. Pricing is among the 4Ps of the marketing mix. Most companies utilize price as a fundamental tenet associated with competitiveness (Londhe, 2014). As you state, the business should heavily rely on the target market and what the competitors are charging in their bid to develop a pricing strategy.
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As you have said, setting a high price could negatively affect the business as very few customers can meet the cost. Many companies are driven by the desire to make profits. However, this is not always the case. Such a business must consider Porter's strategies such as cost-leadership in managing their costs, vis-à-vis the expenditures. The main area of focus for the business should be in the area of product promotion. Through the use of directed messages, companies must emphasize on creating a strong customer base.
Reference
Londhe, B. R. (2014). Marketing mix for next-generation marketing. Procedia Economics and Finance, 11(1964), 335-40.
