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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.
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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 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 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
Case 3: New Product AdoptionGo-Gurt How to get kids & teens to eat yogurt? Spoon is a bother, so traditional packaging restricted sales General Mills’s Yoplait division: Yogurt in a tube (Yogurt for kids on the Go) Flavors: Strawberry splash, Berry blue blast, Watermelon meltdown Instantaneous hit: 1st year sales $100 mill. Nearly doubled proportion of yogurt users < age 19 (to 1 in 6) 6
Case 3: New Product AdoptionGo-Gurt How to get kids & teens to eat Go-Gurt? 7
Case 3: New Product AdoptionGo-Gurt How to get kids & teens to eat Go-Gurt? 8
Stimulating Word of Mouth Influence • Impersonal sources: • Personal sources: 9
Stimulating Word of Mouth Influence • Positive word-of-mouth communication is critical in the success of a new product of service • Unfavorable WOM have devastating effects because consumers seem to place more weight on negative information in making evaluations 10
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 Characteristics: 12
Opinion Leaders Market Mavens Individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to requests from customers for market information 13
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