Buyers' Product Adoption Process

1.   Awareness
Buyers become aware of the product

2.   Interest
Buyers seek information and is receptive to learning about product

3.   Evaluation
Buyers consider product benefits and determines whether to try it

4.   Trial
Buyers examine, test or try the product to determine usefulness relative to needs

5.   Adoption
Buyers purchase the product and can be expected to use it when the need for the general type of product arises.

Rate of adoption depends on consumer traits as well as the product and the firm's marketing efforts.

Diffusion Process

The manner in which different members of the target market often accept and purchase a product (go through the adoption process)

1.   Innovators
Techno-savvies first customers to buy a product, 2.5 % of consumers

2.   Early Adopters
Tend to be opinion leaders. Adopt new products but use discretion, 13.5%

3.   Early Majority
34% of consumers, first part of the mass market to buy the product

4.   Late Majority
Less cosmopolitan and responsive to change, 34%

5.   Laggards
Price conscious, suspicious of change, 16%, do not adopt until the product has reached maturity.

Implications to marketers, company must promote product to create widespread awareness of existence and benefits.
Product and physical distribution must be linked to patterns of adoption and repeat purchase.

Discussion topic: Discuss the differences in the new product development process for digital goods versus tangible goods, consider intellectual property issues, standards issues etc?

Relevant Knowledge@Wharton Articles

Corporate Sponsorships of Stadiums and Other Institutions Don’t Always Pay Off
Switching names, effect of brand. Value to stadiums, value to customers?
How to Keep Others From Ripping Off Your Ideas
Poachers Are Out to Plunder Your Intellectual Property Can you Do Anything?

Intellectual Property: WIPO
Intellectual Property and the National Information Infrastructure
Link to discussion board
Return to Syllabus

 

 

Marketing Strategy: Key Concepts 6

Market Focus: Domestic versus International
Protectionism versus open markets?
Who's Standards to adopt, home country or host country?
Should company play by host rules or try to change them?
Unions, Environmentalists
GWB: Free Trade area EU to impose tariffs to protect steel market
Some risks include:

• changing borders
• unstable governments
• foreign exchange issues (devaluations etc?)
• technology pirating
• adaption costs for product and communication strategy

Steps to consider:

• determine the international market environment (economic, political, legal and cultural); international trade system
• few versus many countries, percentage of sales
• determine which market to enter, risk versus rate of return
• how to enter the market? exporting, licensing, joint ventures and direct investment
• adaption of 4 Ps?: Text Books!
• organizational structure for international business?

Economist: March 2nd, 2002 :The Short Arm of the Law

Discussion Topic: Discuss the complications of removing bribery from international transactions. What are the outcomes for economies?
International marketing is not always about going overseas?
Las Vegas?
General International Links:
Babel Fish
US Depts. of Commerce International Trade Administration, Export-Import Bank of the United States, The Bureau of Export Administration
Links to Trade Alliances:
WTO / GATT, NAFTA, EU for the US, European Union Online
Links for Bribery Discussion:
OECD: Organisation for Economic Co-Operation and Development, Foreign Corrupt Practices Act, Transparency International, Shell: Management Primers

Services

All products include a service component.

• Intangible (associate w/ tangible representation)
• Inseparable (influence providers)
• Perishable (influence demand)
• Variable (standardization issues)

General Marketing Issues:

• External Marketing
• Internal Marketing
• Interactive Marketing

3 additional Ps

• People
• Physical Evidence
• Processes

Focus:

• Search Qualities: Goods (clothing, jewelery)
• Experience Qualities
• Credence Qualities: Services (medical, auto repair, legal services)

Relevant Knowledge@Wharton Articles

Prescription Drug Coverage for Seniors Faces Uncertain Future
A Live Baby or Your Money Back
Poachers Are Out to Plunder Your Intellectual Property – Can You Do Anything?
Ethical Standards for Global Corporations?
Ethical Inspiration for Marketing Managers
A Search for Google’s Success Turns Up Two Words: Trust and Technology

Link to discussion board
Return to Syllabus

Marketing Strategy: Key Concepts 7

What is price?

Price is the value exchanged for the product.

• Economic (inc. barter)
• Freedom of Choice (lock-in, opportunity cost)
• Privacy

Evolution of pricing mechanisms: Fixed versus variable:

• Chapt. 2 Digital Darwinism.
• Pioneer of fixed pricing: Aaron Montgomery Ward

Only element of the MM that is given in return