COMMERCE 2MA3 Chapter Notes - Chapter 8: Panel Data, Marketing Mix, Retail
31 Oct 2016
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Document Summary
New market offerings provide value to both firms and customers. Completely new to the market products represent fewer than 10% of all new product introductions each year. Only 3% of new products actually succeed. Firms can develop products that customers never knew they needed. Firms can take a well-known product and innovate it to make it more interesting. The longer a product exists in the marketplace the more likely it is that the market will become saturated; without new products the value of the firm will ultimately decline. Firms can sustain their growth by getting consumers excited by the new looks and new features. Saturated markets can offer opportunities for a company that is willing to adopt a new process or mentality. Through innovation, firms create a broader portfolio of products, which helps them diversify their risk and enhance firm value better than a single product. Firms with more products are better able to withstand external shocks.
