BU354 Chapter Notes - Chapter 10: Marketing Mix, Reverse Engineering, Test Market
Document Summary
Innovaion the process by which ideas are transformed into new products and services that will help irms grow. Innovaion may not work in the short-run, however overriding log-term reasons compel irms to introduce new products. As they add new product oferings, irms can create and deliver value more efecively by saisfying the changing needs or current and new markets. The longer a product exists in the marketplace, the more likely it is that the market will become saturated. The porfolios of products that innovaions can help create helps the irm diversity its risk and therefore enhances the irm"s value beter than a single product. Pioneers (breakthroughs) new product introducions that establish a completely new market or radically change both the rules of compeiion and consumer preferences in a market. Generally require higher level of learning from consumers and ofer much more beneits then predecessor product.
