MKT-3010 Lecture Notes - Lecture 12: Observability, Revamp, Outsourcing
Document Summary
Sustain a business: you need to develop new products or your going to perish, innovation- taking new ideas and developing products and services around that. Risky due to the failure rate: 90%-95% of new products fail. New-to-the-world products: 10, most products are a comibination of products that already exist an update on a product that already exists. Diffusion innovation curve: don"t need to know percentages, innvators. A lot of risk to worry about time to buy new products or services: early adopters. Want opinion leaders to tell them if they should buy the: early majority. Most new products are not profitable until you hit this product group: late majority, laggards last large group to adopt a product. Once this group adopts the product the market is saturated- full market potential. Hang onto old products once new products are in existence. Using the diffusion innovation theory: relative advantage. How good that product is vs. substitutes.
