MKT 100 Chapter Notes - Chapter 8: Market Saturation, Voice Of The Customer, Observability

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Laila Rohani

Document Summary

Why do firms create new products: new market offerings provide value to both firms and consumers. Innovation is the process by which ideas are transformed into new products and services that will help firms grow. Market saturation: the longer a product is in the market, the more likely it is that the market will become saturated, without new products or services, the value of the firm will ultimately decline. Industries that rely on fashion trends and experience short product cycles, most sales come from new products. Late majority: this group buys when the product has reached its full market potential. Laggards: these consumers like to avoid change and rely on traditional products until they are no longer available. In some cases, laggards may never adopt a certain product or service. If a product is perceived to be better than substitutes, then the diffusion will be relatively quick.