New product development in demand shaping
Traditional demand shaping techniques of price discounts may increase sales volume and take business away from competitors but effectively they can also lead to decreased profitability. There are other techniques that can help manage demand as new product developments, extended warranty services, trade marketing, advertising and coupons/trials. These techniques have the potential to change demand and put it in line with the business strategy. Take new product development for example. Introducing a new product is often a source of sustained competitive advantage and for many companies it has worked turnaround. Apple’s ipod and iphone have created a trend where it always bring new products and sway the market to its side. We are yet to assess the impact ipad would make which is by the way held high in analyst’s forecasts. I am sure this technique has a huge impact and other industries outside the electronics/high tech products can also implement this as intelligently to manage the competition and succeed.
