Product development strategy- provides the ability to:

• Develop new products for existing markets
• Develop new products for new markets
• Line extension- using a successful brand name to market other products
• Push strategy- promotions to gain or hold shelf space in retail outlets
• Pull strategy- advertising to “pull” products through the distribution channels
• Skim pricing- offers the opportunity to “skim the cream” from the top of the demand curve with a high price while the product is novel and competitors are few
• Penetration pricing- attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with low price and then dominate the industry