Reference work entry

Product proliferation is a charge frequently leveled against some organizations that they are marketing so many new products that economic resources are wasted, or consumers are confused. The new products themselves are frequently minor modifications or extensions of existing products in the companies' product lines, and are based on insignificant or trivial differentiation from existing products. Examples include minor alterations to product packaging, new sizes; new colors or flavors of a product; and the addition of unimportant features to a product.

The dangers of such additions to a product line are, first, that they may require considerable incremental resources from the firm which may not be justified by the incremental increase in sales generated. In fact, they may take sales away from successful products already existing in the firm's product line. Secondly, consumer's may be unable to distinguish any real differences in the new products. If consumers fail to benefit from the...

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  1. Kotler, Philip (1997). Marketing Management: Analysis, Planning, Implementation, and Control (9th ed.). New Jersey: Prentice-Hall.Google Scholar

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