COMM 296 Chapter Notes - Chapter 11: Market Saturation, Botulinum Toxin, Observability
Document Summary
Developing new products (1) identify the reasons firms innovate. New market offerings provide value to both firms and customers. Without innovation, firms can only 1) continue to market to current customers or 2) Innovation: the process by which ideas are transformed into new products and services that will help firms grow target another market with similar customers but with everyone else innovating, Pioneers/breakthroughs: new product introductions that establish a completely new market or radically change both the rules of completion and consumer preferences in a market (ie ipod and iphone) Five groups of purchasers for the diffusion of innovation curve: innovators: those buyers who want to be the first to have the new product. Developing new products: early majority: a group of consumers in the diffusion of innovation model. Firms can predict which types of customer will buy product immediately after introduction, and who will buy later help develop effective promotion, pricing, and strategies to bring acceptance amongst other groups.
