MKT 100 Lecture Notes - Lecture 8: Observability, Marketing Mix, Reverse Engineering

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

Document Summary

Describe the diffusion of innovation theory and how managers can use it to make product line. Explain the stages involved in developing new products and services. Describe the product life cycle and summarize how it is used to make product line decisions. Product: anything that is of value to a consumer and can be offered through a marketing exchange. Innovation: the process by which ideas are transformed into new products and services that will help firms grow. Why do firms create new products: changing customer needs, market saturation, managing risk through diversity, fashion cycles, innovation and value. Pioneers: new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market; also called (cid:494)breakthroughs(cid:495) First movers: product pioneers that are first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share lead.