BUS 346 Chapter Notes - Chapter 12: Outsourcing, Marketing Mix, Test Market
Document Summary
Innovation: the process by which ideas are transformed into new products and services that will help firms grow. Market saturation: the longer a product exists in the marketplace, the more likely it is that the market will become saturated. o. Saturated markets can also offer opportunities for a company that is willing to adopt a new process or mentality. Managing risk through diversity: through innovation, firms often create a broader portfolio of products, which help them diversify their risk and enhance firm value better than a single product can. Diffusion of innovation: the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters. Pioneer: new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market; same as a breakthrough.
