MKTG1203 Lecture Notes - Lecture 8: New Product Development, Arch Deluxe, Test Market
Document Summary
Developing new products: describe the different groups of adopters articulated by the diffusion of innovation theory, explain the product life cycle. Diffusion of innovation: when a new product comes to market, not everyone comes to get it. Innovators are the first adopters of new products. People in this group are usually adventurous, interested in new technology and ideas, and willing to take risks: early adopters are the next group to adopt. They are often wary of new products and ideas, and generally prefer products that are familiar. Product life cycle: new product development involves developing an idea into a product, alongside market research. Introduction is when the product first appears in the marketplace, supported by extensive promotion efforts to raise awareness: growth should follow as sales increase and costs decrease. Competitors may enter the market: maturity sees sales and profitability peak, decline sees sales and profitability fall, and the product may be withdrawn.
