MKT 100 Chapter Notes - Chapter 73: Root Mean Square, Starbucks

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Anthony Bonato

Document Summary

When early majority customers enter the market, the number of competitors in the marketplace usually also has reached its peak, so these buyers have many different price and quality choices. With this knowledge, the fi rm can develop effective promotion, pricing, and other marketing strategies to push acceptance among each customer group. However, because different products diffuse at different rates, marketers must understand what the diffusion curve for the new product looks like, as well as the characteristics of the target customers in each stage of the diffusion. The speed with which products diffuse depends on several product characteristics, illustrated in exhibit 11. 2. Relative advantage if a product is perceived to be better than substitutes, then the diffusion will be relatively quick. Many believe, for example, that starbucks" meteoric rise to success is because it is a superior substitute to doughnut or traditional coffee shops.