BU352 Chapter Notes - Chapter 10: Test Market, Marketing Mix, Observability
Document Summary
Innovation the process by which ideas are transformed into new products and services that will help firms grow. Innovation may not work in the short-run, however overriding log-term reasons compel firms to introduce new products. As they add new product offerings, firms can create and deliver value more effectively by satisfying 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 portfolios of products that innovations can help create helps the firm diversity its risk and therefore enhances the firm"s value better than a single product. Pioneers (breakthroughs) new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market. Generally require higher level of learning from consumers and offer much more benefits then predecessor product.
