MKT 100 Lecture Notes - Lecture 9: Test Market, Fire Extinguisher, Voice Of The Customer

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

Document Summary

New market offerings provide value to both firms and customers. Innovation is the process by which ideas are transformed into new products and services that will help firms grow. Without it, firms would either continue to market current products or take the same product to another market. When adding new products, firms can create and deliver value more effectively by (cid:272)usto(cid:373)e(cid:396)"s (cid:272)ha(cid:374)gi(cid:374)g (cid:374)eeds o(cid:396) (cid:271)(cid:455) keepi(cid:374)g them from getting bored. Companies can identify problems and develop products that customers never knew they needed. The longer a product exist in the marketplace, the more the market will become saturated. Through innovation, firms create a broader portfolio of products, which helps them diversify their risk and enhance firm value better than a single product can. In industries that rely on fashion trends and experience short product life cycles, most sales come from new products. Ne(cid:449) p(cid:396)odu(cid:272)ts do(cid:374)"t al(cid:449)a(cid:455)s ta(cid:396)get e(cid:374)d (cid:272)o(cid:374)su(cid:373)e(cid:396)s; so(cid:373)eti(cid:373)es the(cid:455) fu(cid:374)(cid:272)tio(cid:374) to i(cid:373)p(cid:396)o(cid:448)e relationships with suppliers.