Product Launch

1266 WordsJan 24, 20136 Pages
Chapter Sixteen; Strategic Launch Planning The firm should think of product commercialization in two sets of decisions: 1. Strategic Launch Decisions a. Strategic platform decisions (overall tones and directions) b. Strategic action decisions (define to whom we are going to sell and how) 2. Tactical Launch Decisions a. Marketing mix decisions such as communication, promotion, distribution, pricing, etc. b. Strategic givens (already established; difficult or costly to change at this point) For examples check page 374 Strategic Platform Decisions Different levels of product newness require different kinds of impact the launch activities must have on demand: • New to the world: entry strategy with the…show more content…
(Like the shoes from Nike who can be customized) Virtual product testing: Customers build the desired product, get an assessment of the resulting price, and then state their likelihood of making a purchase. Diffusion of innovation: Spreading of the usage of innovations. Factors that affect the speed of the product adoption process: • Relative advantage • Compatibility o Continuous (little change required) o Discontinuous (much change required) • Complexity • Divisibility or trialability (How easy can it be trialed by the customer) • Communicability or observability (How easy can it be seen in public) Types of adopters: • Innovators (first 5%-10%) • Early adopters (Next 10%-15%) • Early majority (Perhaps the next 30%) • Late majority (Perhaps another 30%) • Laggards (Remaining percentage (~20%)) Target market decision essentially measures: 1. How much potential is in each target market option. 2. How well our new product meets the needs of people in each of those markets. 3. How prepared we are to compete in each – that is, our capacity to compete there. Product positioning A product positioning statement is created by completing the following sentence: “Buyers in the target market should buy our product rather
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