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Milestone Three Name Institutional Affiliation Milestone Three Strategies for Evaluation the Success of the New Product and its Branding The successful launch of a new product in the market is critical to a company's growth and ability to compete effectively. To evaluate the success of a new product and its branding in the market, metrics should be established. Metrics not only help companies to understand how well they perform financially but also how unexpected changes in market conditions can affect their business operations. The most common metric for measuring product success is the rate of the return on investment (ROI). ROI is a performance measure that compares actual returns from business to its cost. ROI is calculated by dividing the returns (benefits) by the cost of the investment. It is then expressed as a ratio or a percentage (Krafft & Mantrala, 2006). Return on investment is an effective metric for determining product success due to its simplicity and versatility. Essentially, it can also be used as a gauge for a product’s profitability. A higher ROI means that the product is competing well in the market. A negative ROI means that the company is incurring losses from its new products. In such a case, the marketing strategies and branding should be reviewed. Another important metric for determining the success of a new product and its branding is time-to-marketing (TTM). It refers to the amount of time a company takes to develop a new product (beginning from the idea stage) until when the initial sales are made. TTM is a critical consideration when launching new products because it influences stock turnover and ability to meet marketing
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