MARK 3000 Chapter Notes - Chapter 12: Johnson & Johnson, Test Market, Tampon

• School: University of Georgia
• Department: Marketing
• Course: MARK 3000
• Professor: Grantham

Document Summary

Innovation: process by which ideas are transformed into new products/services that will help firms grow. Why do firms create new products: changing consumer needs, market saturation, managing risk through diversity, fashion cycles. Products remain viable for different periods of time. Diffusion of innovation: process by which the use of an innovation spreads throughout a market group over time and over various categories of adopters. Pioneers/breakthroughs new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market. First movers- product pioneers that are the first to create a market or product category making them readily recognizable to consumers and thus establishing a commanding and early market share lead. Innovators (2. 5%: obsessed with trying new (venturesome) wants to be the first to try, someone always asking a well-informed friend about the latest trends and products to try.