ADM 2320 Lecture Notes - Lecture 14: Market Saturation, Observability, Test Market
16 Mar 2016
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Document Summary
Chapter 8: is the process by which ideas are transformed into new products and services that will help irms grow. When irms add new products to their oferings, irms can create and deliver more efecively by saisfying the changing needs of their current and new customers by keeping customers from geing bored. Companies can idenify problems and develop products that customers never knew they needed. The longer a product exists in the marketplace, the more likely it is that the market will become saturated. Through innovaion, irms oten create a broader porfolio of products, which helps them diversify their risk and enhance irm value beter than single product can. Firms with muliple products are beter able to withstand external shocks, including changes in consumer preferences or intensive compeiive acivity. In industries that rely on fashion trends and experience short product life cycles including apparel, arts, books, and sotware- more sales come from new products.
