Why is product differentiation an important method of gaining market share? It can help stabilize industry relationships. Strategic commitments become less important. It signals a hostile response to new entrants. Competition is based on features, not price: What is the goal of new product development? to refocus marketing efforts to prevent non-price competition to create new sources of revenue to force a price war Why would firms in a mature industry use strategies such as limited pricing and economies of scale? to create barriers to entry to create competitive advantage to create product proliferation to create niche markets How would a firm in a mature industry use a product proliferation strategy to create a barrier to entry? charge a price lower than that which would maximize profits be sure all consumer needs are weil served create price signaling mssoges create economic of scale