MKT 100 Lecture Notes - Lecture 8: Market Saturation

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Khalil Rohani

Document Summary

Delivering new product is expensive, time consuming, and a lot of work. Most innovations are simply modifications of already created products. Changing customer needs: as the values and needs of consumers change (the need for more ecologically friendly things, etc), the appearance and type of products created must be altered to match those changes. Market saturation: the longer the product exists in the market, the more likely the market will become saturated (without new products, the value of a firm will decline) Managing risk through diversity: through innovation, firms can create a broader portfolio of products, which helps them diversify and enhance their firms value (example: p&g) Fashion cycles: consumers demand new products, and get bored of the same products very quickly. You cannot take the market for granted (one day you may be successful, and the next day your company can be dead)