MKT 100 Lecture Notes - Lecture 8: Market Saturation, Test Market

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Fathima Saleem

Document Summary

Firms need to innovate to respond to changing customer needs, prevent decline in sales , avoid market saturaion, diversify their risk, and respond to short product life cycles. New products and services keep current customers coming back for more and induce new customers into the market. Risky, new-to-the-world products have tremendous potenial because they are the irst in the market to ofer something that has never before been available. Explain the stages involved in developing new products and services. When irms develop new products, they go through several steps. First, they generate ideas for the product or service by using several alternaive techniques, such as internal research and development, licensing, brainstorming, tracking compeitors" products or services, or working with customers. Second, irms test their concepts by either describing the idea of the new product or service to potenial customers of showing them images of what the product would look like.