BUS 346 Chapter Notes - Chapter 12: Outsourcing, Takers, Marketing Mix
Document Summary
Lo 1: identify the reasons firms create new products. New market offerings provide value to both firms and consumers. Innovation refers to the process by which ideas are transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow. Without innovation and its resulting new products and services, firms would have only two choices: continue to make current products to current customers or take the same product to another market with similar customers. Even though a premium product costs more, the company can maintain its market share by appealing to the relatively loyal segment of the industry. The longer a product exists in the marketplace, the more likely it is that the market will become saturated. Without new products or services, the value of the firm will ultimately decline. Car companies add features and improve hardware to get consumers to.
