1 / 27

Marketing Communications and New Product Adoption

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.

mahlah
Download Presentation

Marketing Communications and New Product Adoption

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Marketing Communications and New Product Adoption 6

  2. 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

  3. 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

  4. New Product Adoption:The Internet vs. TV 3

  5. New Product Adoption:The Internet vs. TV 4

  6. 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

  7. Adoption Process Trialability Relative Advantage Observability Innovation Related Characteristics Compatibility Complexity 6

  8. Relative Advantage • A product innovation is perceived as better than existing alternatives • Positively correlated with an innovation’s adoption rate 7

  9. Relative Advantage An illustration of relative advantage

  10. Relative Advantage Another illustration of relative advantage

  11. 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

  12. Compatibility A compatibility problem

  13. Complexity • An innovation’s degree of perceived difficulty • The more difficult, the slower the rate of adoption • Examples? 9

  14. Complexity Offsetting perceived product complexity

  15. 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

  16. Adoption Process An effort to promote vicarious trial

  17. 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

  18. Adoption Process Trialability Relative Advantage Observability Amazon Kindle 2.0? Compatibility Complexity 6

  19. Case 3: New Product AdoptionGo-Gurt How to get kids & teens to eat yogurt? 6

  20. Stimulating Word of Mouth Influence • Impersonal sources: • Personal sources: 9

  21. 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

  22. 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

  23. Opinion Leaders Characteristics 12

  24. Opinion Leaders Market Mavens 13

  25. 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

  26. Creating “BUZZ” • Law of the Few • StickinessFactor • Power of Context

  27. 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

More Related