strategies for launching technological innovations

Strategies for Launching Technological Innovations

Developing Market Strategies

“Creativity and Innovation are essential to all organization’s growth and performance in the

global market place…”

INNOVATION takes many forms including new goods and services,

organizational processes and business model.

It is important to recognized which innovation opportunities to grab or

pursue.

Therefore, it is a MUST in every and all company to

create a culture of innovation.

(1) Explorer(2) Pioneers(3) Skeptics(4) Paranoids(5) Laggards

Based on the researched done by Parasuraman and Colby. The said research was based on the

attitudes toward optimism and innovations (which

drive adoption) and discomport and security (which inhibit adoption).

Kinds of ”Techno-ready consumers”

Explorers are extremely high on the drivers of technology readiness and

very low on inhibitors such as discomfort and security. They are

usually younger, upscale and male. They comprise the first wave of

adopters of innovation.

(1) EXPLORERKinds of ”Techno-ready

consumers”

Pioneers desire the benefits of the innovation but are more practical

about the difficulties. Pioneers tend to be young, middle class and success-

oriented.

(2) PioneersKinds of ”Techno-ready

consumers”

Skeptics are low in optimism and innovation but might buy eventually if

they are convinced of the benefits. They are the average age and upper

middle class.

(3) SkepticsKinds of ”Techno-ready

consumers”

Paranoids are optimistic about technology but do not tend to adopt

innovations. They exhibit a high degree of discomfort and insecurity. They tend to be the middle aged and

have lower incomes.

(4) ParanoidsKinds of ”Techno-ready

consumers”

Laggards are pessimistic and have little interest in innovations. They are

characterized by discomfort and insecurity. They tend to be the older

and have lower incomes.

(5) LaggardsKinds of ”Techno-ready

consumers”

PARASURAMAN AND COLBY RECOMMENDED STRATEGIES

TECHNOLOGY EVANGELISMFUTURE-READY DESIGN

PROVING BENEFITSMARKET-STAGE PRICING

Some additional practices to improve

ADOPTION PROCESS

Customer-Focused DesignResponsive Customer Care

Reassuring Communications

FIVE (5) ADOPTION GROUPS

InnovatorsEarly AdoptersEarly MajorityLate Majority

Laggards

Each of the five groups must be

approached with a different type of

marketing if the firm wants to move its

innovation through the full product life

cycle.

the consumer-adoption processHow do potential consumers learn

about new products, try them, and adopt or reject them?(Adoption is an individual’s decision to become

a regular user of a product)The consumer-adoption process is latter

followed by the consumer-loyalty process, which is be concern of the established producer.

Years ago, new-product marketers used a mass-market approach to launch products. This approach had two main drawbacks. (1) It called for heavy marketing expenditures, and (2) it involved many wasted exposures.

These drawbacks led to the second approach, heavy-user target marketing. This approach makes sense, provided that heavy users are identifiable and are early adopters. However, even within the heavy-user group, many heavy users are loyal to the existing brands. New-product marketers now aim at consumers who are early adopters.

stages in adoption process1.Awareness

2.Interest3.Evaluation

4.Trial5.Adoption

The new-product marketer should facilitate movement through these stages.

factors affecting adoption process

• READINESS TO TRY NEW PRODUCTS AND PERSONAL INFLUENCE

• CHARACTERISTICS OF INNOVATION

• ORGANIZATION’S READINESS TO ADOPT INNOVATIONS

Many firms target lead users or innovators with their new products,

with the assumption that their adoption will trickle down to

influence the broader market. Other disagree with this approach and

contend that the most efficient and quickiest route is to target the

broader or even mass-market directly.

TAKE A POSITION:

New products should always

target new adopters

versusNew products

should target the broadest market

possible

YESTERDAY is HISTORY.TOMORROW is a

MYSTERY.TODAY is a GIFT…

(that is why its called PRESENT)