Download Marketing New Industrial Products by Michael J. Baker (auth.) PDF

By Michael J. Baker (auth.)

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Extra resources for Marketing New Industrial Products

Sample text

On the other hand, continuous vinyl was a direct substitute for linoleum, in which Congoleum and Armstrong had a considerable investment, so that adoption by them would not only have required new investment in plant and equipment, but would also have resulted in a reduction in sales of linoleum almost directly proportionate to any sales of vinyl they might make. Further, the linoleum manufacturers could hardly stress the superior qualities of vinyl in introducing it into the market. Collectively, these factors constituted a state of inertia which the innovation was unable to overcome.

C: :::> Elapsed time from introduction Graphical representation of long-run impact of halving time to secure first adoption of an innovation Curve A indicates exponential growth of sales if the first adoption is secured twice as quickly as the first sale in case B. I I: determination of which segment has the strongest demand for the innovation, and what are the most suitable policies for converting this demand into actual purchases. It is difficult to assess just how effective such market segmentation strategies are but, as the incidence of new product failure cited in Chapter 1 clearly indicates, they meet with mixed success.

Hence, if one could identify in advance those potential users so predisposed one could concentrate one's marketing efforts on this most receptive sub-segment, thereby achieving initial sales more rapidly than would be the case if a random approach were followed which presumes that all prospective users are equally likely to adopt first. In reality, of course, the assumption that all prospective users are equally likely to adopt is rarely applicable and most marketing plans are based upon some form of market subdivision or 'segmentation'.

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