Marketing competition on a new product introduction - a structural analysis using systems thinking

Abstract

Launching a new product on the market is a strategic activity that needs specific investments and a specific organisation. There are multiple factors that determine the success of a new product on the market but their direct effects are not often very well observable (marketing for example). With this study, we analysed the systemic structure underlying the dynamics related to the introduction of a new product on the market. In particular, we built a qualitative model based on the systems thinking methodology of causal-loop diagrams (CLDs), starting from the main structure and assumptions of the well-known Bass model. The model provides a systemic perspective on the interdependencies among various aspects that interact in important organisational areas. The presented causal-loop diagram tries to describe the systems structure which is intrinsic to the introduction and diffusion of a new product on the market, and how ultimately the related dynamics could be managed.