Marketing exam 3 - Innovators – first to buy high...

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Marketing exam Ch 10 Innovation – process by which ideas are transformed into new products the will help firms grow. => more efficiently deliver value by satisfying changing needs of customers, longer time on market =>market becomes saturated, big portfolio of products helps firm reduce risk, in some industries most sales come from new products. New to the market – 10 % = pioneers/break-throughs established completely new market or changes current market. Often less sophisticated design and over priced. Majority are failures – 95 % First movers – first to create market or product category Diffusion of innovation – process by which the use of an innovation spreads throughout market. Helps marketers understand adoption rate of consumers. Predict which types of customers will buy product at what time. The speed depend on: - relative advantage: better than substitutes => quick diffusion - compatibility: starbucks good in coffee countries. - Observability: ads - Complexity & trialability: easy to try => quick diffusion
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Unformatted text preview: Innovators – first to buy, high knowledge 2,5% Early adopters – don’t like taking risks, opinion leaders 13,5%. EA small=rest small Early majority – 34%, waits until no more bugs and they have many different price and quality choices. Late majority – 34% sales tend to level off. Laggards New products: Idea generation : R&D, collaboration w/ other firms, brainstorm, research competition and consumers. Pioneers – R&D/ followers – market research. -Internal research & development: -R&D consortia: group together to develop new ideas and products. -Licensing: saves high cost for inhouse R&D-Brainstorming: -Competitors products: reverse engineering – take apart competitors product and remaking better version.-Customer input: 85%, analyze lead users – innovation users that modify products according to own ideas. Concept testing: concept – context of brief written description of product....
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