Developing and Managing Pdts.pptVIP

* Chapter 10 Developing and Managing Products Notes: Exhibit 10.3 shows the rate of adoption of numerous audiovisual products introduced in the last 25 years. Satellite radio has been adopted more quickly than any other innovative audio product. * Chapter 10 Developing and Managing Products Notes: A person who buys a new product never before tried may become an adopter, a consumer who was happy enough with his/her product trial experience to use it again. The diffusion process is the process by which the adoption of an innovation spreads. Five categories of adopters participate in the diffusion process: Innovators: the first 2.5 percent who adopt the product. Many are obsessive about trying new ideas and products. Venturesome. Early adopters: the next 13.5 percent who adopt early in the product’s life cycle. They are oriented to the community and rely on group norms and values. Respect of others is important. Opinion leaders. Early majority: the next 34 percent weigh the pros and cons before adopting a new product, often collecting information and evaluating more brands than early adopters. Characterized as deliberate Late majority: the next 34 percent to adopt. This group adopts a new product because most of their friends have already adopted it. Characterized by skepticism. Laggards: the final 16 percent to adopt. Tied to tradition with heavy influence from the past. By the time laggards adopt an innovation, it has probably been outmoded. Marketers typically ignore laggards, who do not seem to be motivated by promotion and personal selling. Dominant value is tradition. * Chapter 10 Developing and Managing Products * * Chapter 10 Developing and Managing Products * Chapter 10 Developing and Managing Products Notes: The product life cycle (PLC) is a widely familiar concept in marketing and is considered a useful marketing management tool. However, some critics have challenged the theoretical basis and managerial value of the PLC. The produ