The Impact of Social Media on Modern Relationships

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ARROWPOINT-MARKET RESEARCH AND INSIGHT SOLUTIONS

• The Impact of Social Media on Modern Relationships

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"The term 'new' holds significant power in
marketing. It suggests progress, innovation, and
improvement, attracting people like a magnet to
products bearing this label. Continuously
introducing new products is crucial for gaining
attention and generating valuable publicity for a
business. Embracing 'new' positions a company as
dynamic and forward-thinking, although
maintaining this status is challenging. Companies
like 3M and Sony have occupied this position for
periods, but sustaining it requires relentless
innovation despite inevitable setbacks and
failures along the way."
Introduction The Importance Of "New" This white
paper illustrates the potential of market
research in mitigating the risks associated with
product development. It emphasizes that while
market research is invaluable, it may not always
offer straightforward solutions. The
interpretation of data and identification of
opportunities demand significant insights and
experience from market research analysts.
The term "new" is often overly utilized in
marketing, spanning from genuinely innovative
products to mere rebranding efforts. The primary
categories of product development include
3
1. New concepts These are entirely novel
products resulting from innovation, sometimes
pioneering entirely new markets. 2. Additions to
existing product lines These are new products
introduced to complement established product
lines. For instance, a supplier of industrial
gases might introduce a smaller cylinder variant
to cater to customers needing smaller gas
quantities. 3. Modifications of existing
products This involves refining existing
products to better align with customer
preferences, often enhancing performance or
features.
Ninety percent of new product research
predominantly focuses on product 'additions' and
'modifications,' rather than on conceptual
innovations. This emphasis is not unwarranted, as
product enhancements are readily accepted and
present fewer risks compared to entirely new
concepts. In reality, the greater the conceptual
novelty of a product, the higher the associated
risk. For instance, FedEx incurred a substantial
loss of 340 million with its new Zap mail, while
DuPont faced an estimated 100 million loss with
its synthetic leather product, Corfam. Given
these risks, many companies rely on disciplined
market research as a form of insurance, aiming to
mitigate business risks. The subsequent section
delves into how market research serves not only
as a risk mitigation strategy but also as a means
to identify needs and gather insights into market
potential during product development.