MKT 201 Chapter Notes - Chapter chapter 12: Netflix, Brainstorming, Outsourcing
21 Mar 2017
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Chapter 12: market saturation, the longer a product is in a market, the more likely it is to become saturated, without new products, value of firm will eventually decline. Risk management through diversity: firms create broad portfolio of products so that if so(cid:373)e produ(cid:272)ts do(cid:374)"t (cid:373)ake profit, they have others to make up for it. Innovators: first buyers; stood in line overnight for first showing of movie; crucial to success of any new product because help product gain market acceptance. Early adopters: regarded as opinion leaders for particular product categories, not as risky as innovators, but waits to review carefully. Early majority: few products are profitable until this group comes in, rent hunger games; less risk because bugs are worked out and low cost b/c renting, usually when they come in, # of competitors has also peaked. Late majority: at this time, product has reached full market potential; netflix, sales tend to level off or be in decline.
