Marketing communications and new product adoption
This presentation is the property of its rightful owner.
Sponsored Links
1 / 27

Marketing Communications and New Product Adoption PowerPoint PPT Presentation


  • 47 Views
  • Uploaded on
  • Presentation posted in: General

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.

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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Marketing communications and new product adoption

Marketing Communications and New Product Adoption

6


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 product adoption the internet vs tv

New Product Adoption:The Internet vs. TV

3


New product adoption the internet vs tv1

New Product Adoption:The Internet vs. TV

4


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


  • Login