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Chapter 10 - Coggle Diagram
Chapter 10
Types of new products
New-to-the-world products are the inventions or discoveries most strongly associated with new product development.
A company may also create a product for an existing product category. These are new category products
Another form of new product is an addition to the product line. Additions are made to protect a lead brand in the product category from competitors or to fill a gap in the product line.
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The final type of new product development, repositioning, refers to finding a new use or application for an existing product
In some cases, an established product in the home market will be viewed as a new product in the country being entered
Increasingly, new products become popular in developing countries and are then introduced into developed countries
Laws and Adaptation
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A product rarely enters a new, foreign market without changes being made to packaging
Green marketing and labels - governments are now starting to regulate green marketing claims on labels
Laws often govern marketing activities. Adaptations can be adjusting the information about the product to meet local labeling requirements
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Cultural convergence
Increased standardization may be the result of cultural convergence, or the growing similarities between global consumers
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In the case of renewable energy, sustainable sources of energy are sought by countries and companies around the World. Convergence in demand for these resources has risen
Service standardization
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Standardization, and the efficiencies associated with it, can be a powerful marketing force
Adaptation
Changing of any component of the marketing mix to better meet the needs of a local market is adaptation. Changes or adaptations can be as minor as adjusting the information about the product to meet local labeling requirements, or as significant as adding new ingredients or creating unique new brand names.
Responding to local needs as closely as possible constitutes the primary goal of adaptation. Adaptation can lead to more satisfied consumers, build brand image, and increase sales. Adaptation also incurs costs. Changing the marketing mix may require designing an entirely new advertising campaign or developing an expensive new ingredient.
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Global innovation
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A key component of innovation and marketing, new product development is the process of creating a new product.
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Economies of scale
Economies of scale refer to a reduction in the cost per unit as the total volume produced increases. A range of efficiencies emerge as a company produces more of a single product.
Standardization
Standardization is the process of applying the same marketing mix to all markets. A single production process, brand, and appeal are used
Economies of scope
Economies of scope emerge from producing a variety of similar products, which allows for at least parts of the production process and management activities to apply across the product line.
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