Hello Clarice…. Wait wrong type of cannibalism. Well, now that we have your attention let’s talk about the cannibalization effect in marketing. What is it? How does it work? Cannibalization is a loss in sales that is caused by an intro of a new product that in turn, displaces older ones. This can be done by one’s own company or a competitor. There are a few types of cannibalization: planned, through discounts, and through e-commerce.