Product development strategy
Product development strategy- provides the ability to:
- Develop new products for existing markets
- Develop new products for new markets
- Line extension- using a successful brand name to market other products
- Push strategy- promotions to gain or hold shelf space in retail outlets
- Pull strategy- advertising to “pull” products through the distribution channels
- Skim pricing- offers the opportunity to “skim the cream” from the top of the demand curve with a high price while the product is novel and competitors are few
- Penetration pricing- attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with low price and then dominate the industry