Explain the importance of developing new products and describe the six categories of new products. New products are important to sustain growth and profits and to replace obsolete items. New products can be classified as new-to-the-world products (discontinuous innovations), new product lines, additions to existing product lines, improvements or revisions of existing products, repositioned products, or lower-priced products. To sustain or increase profits, a firm must innovate.
1. How many new products can you identify? Visit the supermarket and make a list of at least 15 items with the word "New"
2. New entertainment products aren't necessarily media products. Form a team of three or four students and brainstorm new nonmedia entertainment products. Try to identify one item for each of the categories of new products discussed in the chapter.