MKT 100 Chapter Notes - Chapter 74: Root Mean Square

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Anthony Bonato

Document Summary

Firms that want to be pioneers rely more extensively on r&d efforts, whereas those that tend to adopt a follower strategy are more likely to scan the market for ideas. Let"s look at each of these idea sources. Pfi zer in the pharmaceuticals industry have relied on r&d development efforts for their new products. In other industries, such as software, music, and motion pictures, product development efforts also tend to come from internal ideas and investments. The product development costs for these fi rms are quite high, and the resulting new product or service has a good chance of being a technological or market breakthrough. Firms expect such products to generate enough revenue and profi ts to make the costs of r&d worthwhile; however, r&d investments generally are considered continuous investments, so fi rms may lose money on a few new products.