ADM 2320 Chapter Notes - Chapter 8: Test Market, Baby Food, Sodium Bicarbonate
7 Apr 2016
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Not just new ideas, but improvements on old products, repositioning. Innovation: process of transforming ideas into products, 3% short run success, but long term needs forces new products. New products deliver value to changing needs of current and new customers. Can take well known product and make it better (dyson vacuums) Longer a product exists, the more saturated the market will be. There are still opportunities: new process/mentalities, upgrades, new designs, etc. Innovation allows irms to create broader portfolios, eggs in many baskets . Fashion industry relies on short product life cycles, constantly producing new product selections several times a year. Pioneers: new products that establish new markets/radically change the current. First movers: pioneers that are the irst in the market/category. Disadvantages: competition following irst movers can spend less money, overtake the product in design and pricing, and as many as 95% of new products are failures. Buyers who want to be the irst to have the product/service.
