Abstract
M.Com. (Business Management)
The innovation and marketing of new products has become increasingly important for
the profitability of companies. Developing new products is a risky endeavour.
Research shows that new product development often fails. As such, it is very
important that product development managers are aware of the factors that can cause
product failure.
This research studied the product innovation process in the South African electronics
industry. The objective of the study was to prove the relationship between proficient
development-activity execution and innovation success. The research took the form
of a structured questionnaire, that was mailed to respondents. After analysis -of the
data, it was possible to accept the research hypothesis. The research showed that
marketing activities were not well executed; in contrast technical activities were better
completed. It proved the notion that a market orientation should be favoured above
a product orientation. Companies in the electronics industry seem to have enough
marketing resources available. however. they under-utilize these resources - with
disastrous results.
The research proved that following a strict product development process can improve
new product performance. No one activity causes success or failure but the
combination of pivotal activities has a definite effect on product innovation success.