Many companies introduce products that compete not only with their competitors’ brands but with their own internal brands.

Question

A. Under what conditions would you introduce a new product that you are sure will cannibalize one of your existing products?
B. Why would you consider doing this?
C. Develop an example / problem (i.e., numerical and written) including price and cost data to demonstrate your understanding of this concept. (

Answer 1

First, imagine that you are a small business owner with a very limited promotional budget. You cannot afford large-scale mass media advertising, such as expensive television or radio advertising.

Next, in your discussion post, identify and briefly describe at least five things you could do to promote your business.

Answer 2

First, imagine that you are a small business owner with a very limited promotional budget. You cannot afford large - scale mass media advertising, television or radio advertising. Briefly describe five things you could do to promote your business.