Breaking into markets (new products)

In the assessment of marketing mix surrounding new products each component of the theory is observed according to expected market response (Luan, & Sudihr, 2010). The assessment raises concerns of slope endogeneity a term used to describe explanatory variables associated with an error (Luan, & Sudihr, 2010). The error arise from heterogeneous market- mix variables present at the time of the data collection that is used to make the current predictions of market response to the new market mix (Luan, & Sudihr, 2010). All the presented assumptions is considering researchers of new products determining the response of the market-mix will use historical data over current data. Market researchers forecast predicts consumer behavior in response to the marketing- mix. Researchers with the task of observing existent products in existing markets are challenged with ways of observing potential market disruptions. Managers of homogeneous products look for ways to preserve current market share through environmental analysis of external risk factors. Meanwhile analysis of new products are looking for ways to disrupt new markets with new products through converging theories. Reference Luan, Y. J., & Sudihr, K. (2010). Forecasting marketing-mix responsiveness for new products. Journal of Marketing Research (JMR), 444-457. doi:10.105974.2.444