The Dynamic Marketing Environment 1. Every marketer faces continual shifts in competitive pressures, customer needs, and social and cultural influences. The products you now offer may not be appropriate for the firm's opportunities or threats. Many market leaders set goals for earning a significant portion of their revenue from sales of newer goods or services. B. Types of New Products 1.
Few products are truly new to the world, but there are products that create new categories.
Despite the higher risk in launching them, breakthrough products return higher profits than other types of new products. The category is already in existence, so you can learn from other marketers' mistakes. Your goal is to make a creative imitation so that you don't merely copy someone else's product, you perfect it for your target market. The majority of new products are line extensions. Line extensions are products bearing the marketer's brand that are added to the marketer's existing line of products in a category.