MKTG 3104 Chapter Notes - Chapter 12: Test Market, Reverse Engineering, Outsourcing
31 Oct 2016
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Chapter 12: developing new products 10/26/2016 8:48:00 pm. Innovation the process by which ideas are transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow. Changing customer needs: firms can create and deliver value more effectively by satisfying the changing needs of their current and new customers or by keeping customers from getting bored with the current product or service offering. Market saturation: the longer a product exists in the marketplace, the more likely it is that the market will become saturated. Without new products or services, the value of the firm will ultimately decline. Firms with multiple products can better withstand external shocks, including changes in consumer preferences or intensive competitive activity. Fashion cycles: in industries that rely on fashion trends and experience short product life cycles including apparel, arts, books, and software markets most sales come from new products.
