ADM 2320 Study Guide - Final Guide: Walkman, Observability, Direct Marketing

• School: University of Ottawa
• Department: Administration
• Course: ADM 2320
• Professor: James Bowen

Document Summary

E. d smith: uses fcus groups and surveys to generate new product ideas. In-store taste test provide new insights: generates dialogue in jam aisles, new products used less sugar, free samples generate loads of feedback. New products add to the firms value. Diversify the firms risk (don"t put all your eggs in one basket) Diffusion of innovation chart: must address the risk perceived by consumers. Impact of innovation continuum: swing around from the walkman to the ipod. Relative advantage and compatability: transition from one to the next, new products must be. Wayyy better, old and new structure not compatible with each other. Observability: the easier the benefits are to communicate, the faster the product will diffuse, if benefits are not easily attained the product will not be purchased. Complexity and trialability: the more complex it is, the longer it takes to diffuse, sampled products diffuse faster. New product development process: prices at each stage increase incrementally.