Learning objective
Explain benefits and risks of developing new products.
Read the explanation, check the common trap, then practise with flashcards and questions.
At a glance
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Flashcards
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Questions
Topic
The elements of the marketing mix: price, product, promotion and place
Subtopic
Product
Study support
Understand this objective
Quick explanation
Explain benefits and risks of developing new products
- This point belongs to The elements of the marketing mix: price, product, promotion and place, especially Product.
- You need to be able to explain benefits and risks of developing new products.
- The key ideas to know are product.
- Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.
Key concepts
Why it matters
This objective helps connect Product to exam-style questions, flashcards, and revision notes for The elements of the marketing mix: price, product, promotion and place.
Quick student answer
Explain one benefit and one risk of developing a new product for an online service business.
Direct answer
Benefit: A new service can attract a wider customer base and increase revenue streams. Risk: The development may require significant investment in technology and marketing, and if the service fails to meet user expectations, it could damage the brand’s reputation.
How it works
The answer identifies a clear benefit (customer base expansion) and a specific risk (investment and reputation). It links the risk to potential negative outcomes, showing cause-and-effect.
Key terms
- Innovation: Innovation is the process of creating new or improved products, services or processes that add value for customers and the business.
Common trap
Treating risk as a purely negative factor: Risks can also uncover new opportunities if managed correctly; they should be evaluated alongside potential benefits.
Related questions
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Flashcard prompts
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Revision tools
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Practice Questions0 linked questions
Revision notestopic notes
Open the full topic revision notes when you are ready to review this objective in context.
Open revision notesRelated learning objectives
- Explain features and impacts of price skimming, price penetration, competitive pricing, loss leader and cost-plus pricing.
Price
- Explain factors influencing pricing decisions, including costs, market nature, competition and product life cycle.
Price
- Evaluate factors and assess suitable pricing methods for a given business.
Price
- Explain the basic relationship between price and demand.
Price
- Explain the importance of product design, image and target-market needs.
Product