A small regional publishing company publishes a newsletter targeted to all executives in the Dallas-Forth Worth area. Now it has introduced another newsletter targeted to female executives that has much the same content as its first publication. It is likely female subscribers to its executive newsletter will drop their subscription to the company's original newsletter and find the newer one more personally relevant. If this occurs, then _____ will have occurred.

Question

Quizplus · Accepted Answer

Cannibalization occurs when a company's new product eats into the sales of one of its existing products. In this scenario, the introduction of a new newsletter targeted to female executives, which shares much of the same content as the original newsletter, is likely to lead to existing subscribers (female executives) switching to the new product, thereby reducing the subscription numbers for the original newsletter.

A Small Regional Publishing Company Publishes a Newsletter Targeted to All