Marketing Management, 16th Edition

Creating New Markets

Companies that plan to introduce a new product must decide when to do so. To be first in a market can be rewarding, but it can also be risky and expensive. To come in later makes sense if the firm can bring superior technology, quality, and/or brand strength to create a market advantage.

Gaining a Pioneering Advantage

Studies show that a market pioneer can gain great advantage. Campbell’s, Coca-Cola, Hallmark, and Amazon.com have enjoyed sustained market dominance. Nineteen of 25 market leaders in 1923 were still the market leaders 60 years later!20 In a sample of industrial-goods businesses, 66 percent of pioneers survived at least 10 years, compared with 48 percent of early followers.21

What are the sources of the pioneer’s ...