What does the "first market" mean?

"First on the market" is a term used to describe companies that gain early market share for a new product or product category. When the product is introduced, there is usually an absence of known competition. Companies that want to establish themselves as market leaders, gain brand recognition and maintain a long -term market share, can monitor this type of strategy. Large, established companies sometimes develop and represent new products to remain competitive and address consumers who value innovation. For example, a leader in the global consumer drink market was the first company to introduce non -alcoholic beverages with Cola flavor. Some companies have become the leaders of the introduction of products before some product categories existed a high level of competitive activities such as refreshments. Although the company could Hanebyl the first to produce and sell potato chips, its specific brand could get the biggest beginning.

For some companies, the advantage of the "first market" is the ability to determine brand recognition and loyalty. By placing a new product on the market before there are a large number of competitors, companies can maximize the number of potential consumers who try, use and receive the product. In some cases, the category of products will become associated with the market leader. When consumers think or refer to the product, they call it a market leader, regardless of whether they buy their brand.

The "first market" strategy can help companies maintain a long -term market share. Several developers of the new products have long -term market shares that exceed the shares of their competitors. Although this is not guaranteed that this will happen, most consumers tend to stick to one or two brands to meet. By being the only available option during the product introduction phase, consumersThey are more likely to develop a preference for a brand with which they have more experience.

The disadvantages associated with the "first market" strategy include high development costs and the risk of imitating competitors that can bring more value. In some respects, companies that introduce new products open up opportunities for other organizations to steal the market share by creating cheaper prices. The market leaders also carry the burden and costs associated with creating awareness of their new products and persuading consumers to try them.