BD Group: Introducing the Chicka Phone 1
Part 1 - Influencing market acceptance in a consumer market3
1.1 Knowledge phase3
1.2 Persuasion phase4
1.3 Decision phase4
1.4 Implementation phase4
1.5 Confirmation phase4
Part 2 - Influencing market acceptance in a B2B market4
2.1 Influencing individual members of the DMU5
2.2 Influencing the customer firm5
2.3 Influencing a whole market segment5
2.4 Influencing several market segments6
Part 3 - Evaluating market acceptance6
3.1 Evaluate Market acceptance in an consumer market6
3.2 Evaluate Market acceptance in an B2B market7
In this case we will treat different aspects in the field of Business Development. The theme is developing for markets, where the processes of adoption and diffusion will be elaborated. To illustrate the theory behind these processes, a case will be presented about a new start-up company, which is named the BD Group.
The BD Group has been innovating their communication systems, and want to bring it to the market. For the consumer market, the BD Group wants to bring a new consumer phone: the Chicka Phone 1. This phone holds their new and innovative technology addressing in particular the needs of students who are much socially active. For the B2B the BD Group is interested in exploiting the technology to other companies.
This paper focuses on aspects a company should take into account before bringing a new product to a market and how it can evaluate the market acceptance when a product is actually launched. The former will be addressed in two parts in this paper. In the first part will be referred specific marketing tools that can be used when bringing a new product to the consumer market, and in the second part, this will be done for bringing a new product to a B2B market. The third part will show how to evaluate the market acceptance when the product is actually launched to one (or both) markets. Part 1 - Influencing market acceptance in a consumer market
Many proactive firms try to positively influence market acceptance of their newly introduced products. This means that this company has to deal with both (1) the adoption processes at the level of individual customers and (2) the diffusion processes at the market level. In order to do so, a company can use different tools. In this section these tools will be addressed. This will be done using the model of Rodgers (1995) of Stages in the innovation decision process, see also figure 1. The theory will be illustrated by using the case of BD Group.
Figure 1: A Model of Stages in the Innovation-Decision Process (Rodgers, 1995)
A new company, called the BD Group is going to bring the new Chicka Phone 1 to the market. Different actions have to be considered by BD Group in the adoption process, this to influence the adoption at the individual level. In each phase of the innovation-decision process; the knowledge, persuasion, decision, implementation and confirmation phase, different tools are needed.
1.1 Knowledge phase
“Knowledge occurs when an individual (or other decision making unit) learns of the innovation's existence and gains some understanding of how it functions” (Rogers, 1995, p.20). In the knowledge stage innovators and early adaptors become most engaged. In this stage, information from a different variety of sources and references (statistics etc.) will be most effective in increasing awareness and adoption of the Chicka Phone 1. Knowledge should be spread in different kind of forms, from commercials to face to face contact with potential customers for the Chicka Phone 1.
1.2 Persuasion phase
“Persuasion occurs when an individual (or other decision-making unit) forms a favorable or unfavorable attitude toward the innovation” (Rogers, 1995, p.20). The persuasion stage is about uncertainty reduction for the...