MKT 305 Chapter 9.1: MKT Chapter 9.1 Textbook Notes
Document Summary
5 step process: idea generation, screening, idea evaluation, development, commercialization. Describes the stages a new product idea goes through from beginning to end. Concerned with new types/categories of products in the market: market introduction, market growth, market maturity, sales decline. *sales and profits do not move together over time. *industry profits decline while industry sales are still rising. Sales are low as a new idea is first introduced. Many companies experience losses during the introduction stage. But industry profits rise and then start falling. Occurs when industry sales level off and competition gets tougher. Aggressive competitors have entered the race for profits. Old products still may be sold to loyal customers or those who are slow to change their minds. The sales and profits of an individual brand often do not follow the life cycle pattern. The first to the market with a new product idea. Quickly follows the pioneer and usually becomes more profitable.
