BU352 Chapter Notes - Chapter 8: Marketing Mix, Reverse Engineering, Voice Of The Customer
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Product: anything that is of value to a consumer and can be ofered through a marketing exchange. Goods, services, places, ideas, organizations, people or communities. Innovation: the process by which ideas are transformed into new products and services that will help irms grow. Changing customer needs: when new products are added, irms can create and deliver value more efectively by satisfying the changing needs of their current and new customers or by keeping customers from getting bored with current products. Market saturation: without new products, the value of the irm will ultimately decline (if nike made the same shoes every year, customers would not need new shoes) Managing risk through diversity: if some products in a portfolio are doing poorly, others may be doing well, firms with multiple products are better able to withstand external shocks. Fashion cycles: in industries that rely on fashion trends and experience short product life cycles, most sales come from new products.
