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Posted: August 26th, 2024

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

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