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Marketing Communications and New Product Adoption. 6. Case 1: New Product Adoption The Internet. 2001: 63% U.S. HH own computer 57% HH connected to Internet How long will it take for Internet to reach 100% penetration?. 1. Case 2: New Product Adoption Television.

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Presentation Transcript
case 1 new product adoption the internet
Case 1: New Product AdoptionThe Internet
  • 2001: 63% U.S. HH own computer

57% HH connected to Internet

How long will it take for Internet to reach 100% penetration?

1

case 2 new product adoption television
Case 2: New Product AdoptionTelevision
  • 1947-1955: Took 8 years to reach 63% penetration
  • Took another 30 years to reach current penetration of 98%
  • Would you expect Internet to reach same 98% level? How long would it take? Faster or slower than for TV?
  • What are some considerations that shed light on these questions?

2

new products innovation
New Products & Innovation

New flavors, sizes, packages

Annual new models in cars;

New fashions

First introduction of compact cars;

Color television

Invention of computer;

Jet aircraft

5

adoption process
Adoption Process

Trialability

Relative

Advantage

Observability

Innovation

Related

Characteristics

Compatibility

Complexity

6

relative advantage
Relative Advantage
  • A product innovation is perceived as better than existing alternatives
  • Positively correlated with an innovation’s adoption rate

7

relative advantage1
Relative Advantage

An illustration of

relative advantage

relative advantage2
Relative Advantage

Another illustration

of relative advantage

compatibility
Compatibility
  • An innovation is perceived to fit into a person’s way of doing things
  • The greater compatibility, the more rapid a product’s rate of adoption
  • Overcome perception of incompatibility through:

8

compatibility1
Compatibility

A compatibility

problem

complexity
Complexity
  • An innovation’s degree of perceived difficulty
  • The more difficult, the slower the rate of adoption
  • Examples?

9

complexity1
Complexity

Offsetting perceived

product complexity

trialability
Trialability
  • An innovation can be used on a limited basis prior to making a full blown commitment
  • The trial experience serves to reduce the risk of a consumer’s being dissatisfied with a product after having permanently committed to it through outright purchase

10

adoption process1
Adoption Process

An effort to

promote

vicarious trial

observability
Observability
  • The product user or other people can observe the positive effects of new product usage
  • Higher the visibility, more rapid the adoption rate

11

adoption process2
Adoption Process

Trialability

Relative

Advantage

Observability

Amazon

Kindle 2.0?

Compatibility

Complexity

6

case 3 new product adoption go gurt
Case 3: New Product AdoptionGo-Gurt

How to get kids & teens to eat yogurt?

6

stimulating word of mouth influence
Stimulating Word of Mouth Influence
  • Impersonal sources:
  • Personal sources:

9

stimulating word of mouth influence1
Stimulating Word of Mouth Influence
  • Positive word-of-mouth communication is critical in the success of a new product or service
  • Unfavorable WOM have devastating effects because consumers seem to place more weight on negative information in making evaluations

10

opinion leader
Opinion Leader
  • A person who frequently influences other individuals’ attitudes or overt behavior
  • An informer, persuader, and confirmer
  • Influence is typically limited to one or several consumption topics
  • Influence moves horizontally through a social class (not across)

11

opinion leaders
Opinion Leaders

Characteristics

12

opinion leaders1
Opinion Leaders

Market Mavens

13

tactics seeding the market
Tactics: “Seeding the Market”
  • Supplying advance samples in key markets to people who are likely to be influential.
  • Finding cheerleaders who will get the talk started.

14

creating buzz
Creating “BUZZ”
  • Law of the Few
  • StickinessFactor
  • Power of Context
igniting explosive demand
Igniting Explosive Demand

1.Design the product to be unique, visible

  • Select and seed the vanguard
  • Ration supply
  • Use celebrity icons
  • Tap the power of lists

6. Nurture the grass roots

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