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Differences between Flop and commercial failure

Sep

30

2011

Differences between Flop and commercial failure

In: Management Asked By: khristine [216 Blue Star Level]
Answer #1

At first glance, we may think that commercial flop and commercial failure are the same concepts as they convey meaning of unsuccessful performance, else a kind of loss or defeat in business ventures. However at some point, commercial flop and commercial failure are viewed to be distinct from one another by a very thin line of divergence.

On one hand, commercial failure is the condition when a paid promotional broadcast or advertisement (in any form) is not able to meet its intended or desired purpose and objective, which is to earn money or gain profit from the project. But because of some inadvertent reasons like insufficient market research, incorrect priced product, mistaken targeted market, inaccurate positioning of the product, and most probably too little promotion, advertising and marketing, the success of the commercial is countered thus resulting to failure.

On the other hand, commercial flop refers to the condition when a paid promotional broadcast or advertisement of any form is not able to sell and make money despite having enough publication or pricing the product accordingly. It is sometimes viewed to be a total or absolute commercial failure because the producers lose money due to poor consumer response, which most likely leads to bankruptcy or closure of the product.

By fact, the terms “failure” or “success” are relative words. Their definitions may vary depending on the observer’s viewpoints and belief system. In this case, a commercial may be considered as a failure in spite of earning money or having positive consumer reception. This is possible to happen especially if the production cost of the commercial or product is too high that regardless of having sales the producers still loses money. In another way, a commercial is considered a “flop” if it receives negative consumer reception thus resulting to failure in selling the product and even leads to discontinuation in the production of the failed merchandise.

Answers Answered By: khristine [216 Blue Star Level]
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