Why Firms Innovate
What is the process by which ideas are transformed into new offerings like products, services, or branding
What is Innovation
This small, adventurous group is the first to try new products, has a high tolerance for risk, and provides essential early feedback.
What are Innovators
This is the initial step where the company brainstorms and collects potential product ideas from internal sources like R&D or external sources.
What is Idea Generation
Introducing the product in a small geographic area, like McDonald's testing a new sandwich in one city, is a method of market testing called this.
What is Test marketing
This model outlines the stages a product goes through from launch to decline, helping companies plan pricing, promotion, and competitive strategy
What is The Product Life Cycle
This market condition, which Taco Bell constantly addresses with new menu items, occurs when a product exists in the marketplace for a long time.
What is Market saturation
This influential group is the next to adopt and acts as opinion leaders whom others look to for guidance on new products.
What is Early Adopters
This step focuses on how customers react to the product idea, usually done through focus groups, before wasting money on development.
What is Concept Testing
Using lab settings or online environments to gauge consumer reactions is a method of market testing called this.
What is Simulated test marketing
The stage exemplified by the first Apple Watch launch in 2015, where sales are slow and the focus is on building awareness.
Introduction Stage
Firms manage risk and withstand external shocks like shifts in consumer preferences by building broader portfolios through this
What is Product diversification
This large group is often skeptical and adopts only after seeing proof that the innovation works, signaling mainstream acceptance.
What is Early Majority
This step involves engineers and designers creating prototypes, finalizing features, and conducting R&D testing, causing costs to rise significantly.
What is Product Development
What kind of testing is done in-house by employees before external trials in the Product Development phase
What is Alpha testing
The stage where sales peak, the market is highly competitive, and companies focus on differentiation and loyalty programs, like the iPhone vs. Samsung.
What is Maturity Stage
These industries, such as apparel, arts, software, and books, rely on trends and experience short product life cycles.
What is Fashion cycle industries
This is the last group to adopt, is strongly tied to tradition, and only adopts out of necessity, cost reduction, or social obligation.
What are Laggards
This is the step where a company officially rolls out the product to the full market with large-scale production, distribution, and promotion.
What is Product Launch
The purpose of the Market Testing stage is to evaluate customer response and measure what potential before the full launch?
Sales potential
What is the strategic decision a company must make when a product enters the Decline Stage?
What is Whether to discontinue, reduce costs, or reinvent the product
Firms create new products to satisfy changing customer needs and also to improve these, referring to their relationships with suppliers and distributors.
What are Business relationships
This skeptical group is often influenced by social pressure or economic necessity and responds to marketing that emphasizes proven reliability and simplicity.
What is Late Majority
What is the final step in the product development process, where sales data, market share, and customer feedback are used to measure success against original goals?
What is Evaluation of Results
The goal is to perform market testing in a limited area before being rolled out either nationwide or this.
What is Globally
In this stage, sales increase rapidly, competitors notice success and enter the market, and the company focuses on improving features and expanding distribution.
What is the Growth Stage