MKT 100 Lecture Notes - Lecture 8: Botulinum Toxin, Observability, Starbucks

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Laila Rohani

Document Summary

Describe the diffusion of innovation theory and how managers can use it to make product line decision. Explain the stages involved in developing new product and services. Describe the product life cycle and summarize how it is used to make product line decisions. Market saturation: without new products the firm"s value will most likely decline, managing risk through diversity. Firms with multiple products are better able to withstand external shocks, including changes in consumer preferences or intensive competitive activity: fashion cycles. Most sales come from new products: innovation and value. Innovation is the process by which ideas are transformed into new products and services that will help firms grow. Innovation and value can add tremendous value to a firm. Pioneers-new product introductions that establish a completely new market or radically change both rules of competition and consumer preferences in a market.