Final answer:
Cannibalization in marketing occurs when the sales of a new product negatively impact the sales of the company's own existing products. It differs from predatory pricing, trade secrets, and trademarks, which are other competitive strategies or intellectual property concerns in business.
Step-by-step explanation:
In the context of marketing, cannibalization refers to the phenomenon where sales of a new product harm the sales of a company's existing products. It is not about one company consuming another's market share, or the illegal use of copyrights and patents from another company. Instead, cannibalization happens when a new offering from a company competes with its existing products. This can sometimes be a strategic choice, as part of a product lifecycle or update strategy, but it can also be an unintended side effect of product portfolio expansion. However, if done without care, it can lead to diminished brand value and overall sales.
Predatory pricing is a separate concept where a firm might use price cuts to discourage new competition, and this action is typically deemed a violation of antitrust laws. Trade secrets are methods of production a company keeps confidential to maintain a competitive edge, while a trademark is an identifying symbol or name that can only be legally used by the firm that registered it. Cannibalization should not be confused with these concepts.