Hasbro

Pax is a warrior-fighting game played roughly like a GameLmy, except that the device has h radio transmit ler and receiver buitt inio if, One Ron player can play the game against another petsen or multipre people, including unknown jjeople who fust Happen lo ue within radio range. Hasbro launched me game by choos-mg a high potential area—Chicago—anil finding cool kids" to help with the marketing.The coot k;ifs were geographically distributed and idenlilied through sumeys. They were tTien supplied Willi iG Pox games to give to friends and paid $30 to help spread we word. The launcn was so successful lhar Hasbro's lay retailers demanded a ¡nil scale nntiDeal launch, forcing the company Io augment its vital marketing efforts with ■ mass marketing.51

Some products catch on immediately (rollerblades), whereas others take a long time to gain acceptance (diesel engine atitos). J;ive characteristics influence the rate of adoption of an innovation. We will consider them in relation to the adoption of personal video recorders (TVIts) for ht)me use, as exemplified WfTiVo.58

The Jirst is winiive rtdvnwage— the degree to which the innovation appears superior to exist ing products. The greater the perceived relative advantage of using a PVH, say, for easily recording favorite shows, pausing live TV or skipping commercials, the more quickly it will be adopted. The second is compatibility—degree 10 which the infiorarion matches ihe values and experiences of ihe individuals. PVHs, fcir example, are highly compatible with avid iclevi-sion watchers I'hird is complexity—the degree io which tlie innovation i^ relatively difficult tu understand or use. PVHsare somewhat complex and will therefore take a slightly longer time to penetrate into home use. fourth is ttltflsi^titj'—*the degree to which the innovation can be tried on a limited basis. This provides a sizable challenge for PVfts --.sampling can only occur in a retail store or perhaps a friend's house, l itili is coiittttttnicability -the decree to which the beneficial result s of use are observable or descrihable toothers. The fact that PVRs have some clear advantages can help create interest and curiosity.

il ther characteristics ill at Influence the rate of1 adoption tire cost, risk and uncertainty, scientific credibility, and social approval. The new-product marketer has to research all these factors and give the key ones maximum attention in designing the pew-product and marketing program.

ORGANIZATIONS' READINESS TO ADOPT INNOVATIONS Ihe creator of a new teaching method wquM want to identify innovative schools. The producer of a new piece of medical equipment won Id want to identify innovative hospital». Adoption is associated with variables in tlie organization's environment (community progrcsSlveness. comrpunity income}, the organization itself (size, profits, pressure to Change), and the administrators (education level, age, sophistication). Other forces cume into play in trying to get a product adopted into organizations that receive the bulk of their funding from the govern mom, such as public schools. A controversial or innovative product can be sqii etched by negative public opinion.

t. Once a com pan v has segment ed the market, chosen it*, target customer groups and identified their needs, and de te rm inert its desired market positioning, it is ready to develop and launch appropriate new products. Marketing should participate with other departments in every stage of n$w-product de velop nient,

2. Successful neu ■ product development rc<|tu&s the company to establish an effective organization fur managing the development process. Companies can choose to use product managers, new-product managers, new-prod net committees, new-product departments, or new-prod net vendue teams, increasingly, companies are adopting cross-futiaft-tioiiEil teams and developing m u it ¡pie product concepts.

3, Iriglit stages are involved in the new-prod net development process; idea generation, screening, concept development and testing. markeling-stfötegy development, business analysis, product development) market testing, and commercialisation. At each stage, the company must determine whether the irlea should be dropped or moved to the nest stage.

I, The consumer-ad opt ion process is the process by which customers learn about new products, try them, and adopt or reject them. Today many marketers arc targeting heavy users and early adopters of new products, because bnth groups can be reached by specific media and tend to be opinion leaders. The consumer-adoption process is influenced by many factors beyond the marketer's control, including consumers' and organizations' willingness to try new products, personal influences, and the characteristics of the new product or innovation.

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Marketing Debate Who Should You Target with New Products?

Many firms ini^et lead users or innovators with their new products, with the assumption that their adoption will trickle down to influence the broader market. Others disagree with this approach and contend that the most efficient and quickest rotate, is to target the broader or even mass market diusctly

Take 3 position: New products should always target new adopters versus New products should target the broadest market possible-

Marketing Discussion

Think about the last new product you bought. How do you think ils success will be affected by Ihe five characieristics of an Innovation* relative advantage, compatibility, complexity, divisibility, and comnmnicahility?

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