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A Conceptual Approach for Cannibalism Between Goods
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A Conceptual Approach for Cannibalism Between Goods
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China today has what are called open cities, special economic zones, and open zones. It is estimated that these cities or areas generate three or more times the income of other places, and they also possess better conditions and facilities than elsewhere in China. For example they are well developed industrial bases, better communication and transportation facilities, and various preferential policies. Four of these special economic zones were established in 1979, in Shenzhen, Zhuhai, Shanton and Xiamen. A further 14 open coastal cities were established in 1984. These include Dahlian, Qingdao, and Qinhuondgao. In 1985 the Chiangjiang and. | 1 A Conceptual Approach for Cannibalism Between Goods Mauro Laruccia Universidade Braz Cubas Brasil mauro.laruccia@gmail.com Sandra Maria Correia Loureiro University of Aveiro Portugal sandra.loureiro@ua.pt Rui Lopes University of Aveiro Portugal rui.s.lopes@ua.pt Abstract The launching of a new product is an essential strategy for the survival and success of a company. However in certain cases it can reduce the results obtained by another product of the same company. This fact is named cannibalism. Following a review of the literature on cannibalism between goods this paper outlines a conceptual approach showing the way it happens its impacts and the possibility of its uses as a marketing tool. A new product should wherever possible be carefully designed to avoid cannibalizing old products unless this process is carefully planned. Keywords cannibalism new products marketing. Introduction Among the business strategies of competitive organizations can highlight the continued development and launch of new products which occurs by the need to replace a product that no longer provides important benefits to your target audience and the company. Organizations therefore need a continuous flow of development and introduction of new products in markets where they choose to act. According Clancy and Shulman 1993 in the area of consumer packaged goods the failure rate of new products is estimated at about 80 and most of these are composed of line extensions. Kotler 1998 Semenik and Bamossy 1995 Ries and Trout 2000 and Boone and Kurtz 2009 when claiming the extension of product line or introducing new products warn about the risks of cannibalism. Although they believe that cannibalism is an occurrence that can divert business from achieving its goals therefore considered a problem that must be controlled few discuss the causes consequences or your dealings with marketing variables. Thus this study proposes to meet cannibalism among products. Cannibalism in Marketing A product
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