BNAD 303 Lecture Notes - Lecture 12: Market Saturation, Test Market, Observability

• School: University of Arizona
• Department: Business Administration
• Course: BNAD 303
• Professor: Hardesty

Document Summary

Describe the different groups of adopters articulated by the diffusion of innovation theory. Describe the various stages involved in developing a new product or service. A new product can be anything from a slight redesign to new-to-the-world offerings. Innovation: the process by which ideas are transformed into new products and services that will help firms grow. Without new products or services, the value of the firm will ultimately decline. The longer it exists- the more likely it is that the market will become saturated. Diffusion of innovation: the process by which the use of an innovation spreads throughout a market group, over time and over various categories of adopters. How firms develop new products: idea generation: development of viable new product ideas. Firms must constantly look at the environment for new ideas. Customer input: concept testing: testing the new product idea among a set of potential customers. A brief written description of the product.