BUSI 4220U Lecture 9: Lecture 9
Document Summary
New product for same market: diversification strategies. Acquisitions: buy other companies, acquire patents from other companies, buy a license or franchise from another company. Development: develop new products in its own laboratories, contract with independent researchers or npd firms to develop new products. Categories of new product introductions: new to the world, new product lines, additions, improvements, repositionings, cost reductions. Consumer-adoption process: customers learn about new products, try them and adopt/reject them. New product development (npd: influenced by many factors beyond the marketer"s control, consumers and organizations" willingness to try new products, personal influences, the characteristics of the new product. Allow time of for technical people to putter on pet projects. Branding the new product npi as brand extensions. Unsuccessful brand extensions damages the parent brand when there is high fit with the parent brand can result in brand dilution.
