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7.

How can a company realistically introduce new products without compounding

organizational problems?

The problem is partly that new products aren’t developed and put through their paces in

a systematic enough way to let marketing men know when a test market is really in

order. Compounding this difficulty is that the goals of test marketing are sometimes

unclear and that the information, once gathered, is often improperly used. The direct

costs of test marketing include a pilot plant to make the product, commercials, an

advertising agency because media are not billed, point-of-sale material produced in

small quantities, higher media expenses because of low volumes, couponing, sampling,

and higher trade allowances to obtain distribution.

However, a company can introduce a new product without compounding organizational

problems if they have three basic elements of ideal product development:

 A successful product,

 A competitive marketing strategy,

 A superior communication plan.