MKT 100 Chapter Notes - Chapter 8: Pharmaceutical Industry, Reverse Engineering, Brainstorming

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Asif Salam

Document Summary

Why do firms innovate? innovation process by which ideas are transformed into new prod/serv that will help firms grow. Changing customer needs keep customers from getting bored of their current prod/serv. E. g dove beauty bar extended brand into hair, face, skin care lines. Can identify problems and develop products that customers never knew they needed. Longer prod exists on market, more likely market will become more saturated. People get tired of same old thing, they seek variety. Car companies revamp their cars every year. Through innovation, often create a broader portfolio of products, which helps them diversity their risk and enhance firm value better than a single product can. Diversification enables company to achieve better results than with just one kind of prod. Firms w/ multiple prod are better able to withstand external shocks changes in consumer preferences or competition. Sony walkman cds to apple ipod itunes, eliminate cds. Experience short product life cycles (apparel, arts, books, software)