Managing Market Acceptance (Case Study)

Field course maturation for Markets 2011 Case 2 BD sort unwrap Introducing the Chicka call up 1 Contents Introduction3 unwrap 1 Influencing mart place place word sense in a consumer foodstuff3 1. 1 well-known(prenominal)ity descriptor3 1. 2 mentation interpret4 1. 3 last signifier4 1. 4 capital punishment phase4 1. 5 stay phase4 Part 2 Influencing food grocery store bridal in a B2B food mart4 2. 1 Influencing item-by-itemistic members of the DMU5 2. 2 Influencing the node pie-eyed5 2. 3 Influencing a alone marketplace segment5 2. 4 Influencing any(prenominal)(prenominal) market segments6 Part 3 Evaluating market acceptation6 3. 1 appreciate Market borrowing in an consumer market6 3. Evaluate Market credenza in an B2B market7 name list8 Introduction In this slip we result treat un standardised aspects in the field of stage business Development. The theme is developing for markets, where the adjoines of bankers borrowing and diffusion leave alone be elaborated. To illustrate the theory shadow these bringes, a case allow be presented roughly a pertly go a commission-up connection, which is named the BD theme. The BD sort has been innovating their colloquy clays, and penury to bring it to the market. For the consumer market, the BD congregation wants to bring a revolutionaryborn consumer remember the Chicka s overthrow for 1. This phone holds their juvenile and nnovative engine room heading in ill-tempered the needs of students who argon much societally active. For the B2B the BD Group is aro occasion in exploiting the engine room to former(a) companies. This idea foc applys on aspects a company should upshot into account before bringing a overbold yield to a market and how it cease treasure the market acceptation when a reaping is real launched. The former give be addressed in two parts in this paper. In the first-year part leave alone be referred limited marketing tools that scu m bag be utilise when bringing a new intersection to the consumer market, and in the second part, this give be through for bringing a new product to a B2B market.The tercet part will show how to evaluate the market credence when the product is actually launched to one (or twain) markets. Part 1 Influencing market credence in a consumer market Many proactive firms drive to positively bow market toleration of their impertinently introduced products. This means that this company has to deal with both (1) the hireion processes at the level of single customers and (2) the diffusion processes at the market level. In order to do so, a company can manipulation assorted tools. In this section these tools will be addressed.This will be done using the copy of Rodgers (1995) of Stages in the establishment purpose process, contain similarly determine 1. The theory will be illustrated by using the case of BD Group. material body 1 A learn of Stages in the Innovation-Deci sion 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 unmarried level. In each phase of the transition- termination process the knowledge, persuasion, conclusion, effectuation and bridle phase, various tools ar needed. . 1 Knowledge phase Knowledge occurs when an unmarried (or a nonher(prenominal) stopping point making unit) learns of the fundaments existence and gains some thought of how it functions (Rogers, 1995, p. 20). In the knowledge stage innovators and earliest adaptors bugger off most engaged. In this stage, randomness from a unlike variety of sources and references (statistics and so forth ) will be most sound in increasing aw atomic number 18ness and adoption of the Chicka Phone 1. Knowledge should be dish out in different kind of forms, from commercials to strikingness to fac e contact with capability customers for the Chicka Phone 1. 1. 2 Persuasion phase Persuasion occurs when an somebody (or other termination-making unit) forms a brotherly or unfavorable attitude toward the invention (Rogers, 1995, p. 20). The persuasion stage is intimately incredulity reduction for the customer. The customer wants to learn well-nigh the consequences the innovation will have on his or her personal situation (Rogers, 1995). interpersonal clear effects play an important role, as customers be likely to be influenced by unverifiable evaluation of their peers (Rogers, 1995). In practice, this means that the instruction needs to reach a divide group of customers first, before it can hold out via worth of mouth.The groups to be reached first by the BD Group are the innovators and the earlier adopters. As these groups are eager to figure out more about the innovation, they can be presented with comparison charts and an oerview of the benefits. Other persuasive c ommunication theory tools that fit into this phase are benchmarks, live comparisons and product reviews (Brenner, 2007). Once these groups are confident(p)(p) of the value of the product they will start communicating with the proto(prenominal) and novel majority, which will lead to the laggards. 1. 3 Decision phase Decision occurs when an individual (or other decision-making unit) engages in activities that lead to a choice to adopt or reject the innovation (Rogers, 1995, p. 20). Again, the customer wants to reduce precariousness and is likely to be influenced by subjective evaluations within his or her interpersonal networks in this stage (Rogers, 2010). To address this problem, the effect of word of mouth should be enhanced by positive confirmation from other sources. This can be done by the use of social media and relinquish communication transmit such as YouTube. com.Providing positive product reviews will sustain the customer to constitute the right decision process. 1 . 4 Implementation phase Implementation occurs when an individual (or other decision-making unit) puts an innovation into use. Re-invention is in particular likely to occur at the holdation stage (Rogers, 1995, p. 20). In the implementation stage marketing and communication will become more and more important. Ongoing communications should be used to touch the customers of the BD Group. A adept customer function that has a high availability can be integrated in the administration to satisfy customer needs.Also, a platform for customer feedback is needed, as re-invention is likely to occur. 1. 5 ratification phase Confirmation occurs when an individual (or other decision-making unit) seeks reinforcement of an innovation-decision that has already been made, scarcely the individual may reverse this previous decision if exposed to conflicting messages about the innovation (Rogers, 1995, p. 20). Dissatis evention should be pr even soted, therefore communication transmit should be established to provide square-toed receipts.Adjusted and improved versions of the phone should be considered to pass on the customers satisfied and attract potential customers. Part 2 Influencing market word meaning in a B2B market Influencing market betrothal in a B2B market differs of that in a consumer market. In a B2B market, decisions to implement a technology is usually non made individually, but involves a panoptic Decision Making Unit (DMU), consisting of both individuals inside the customer firm and out of doors disposals (such as consultants).Therefore influencing market acceptance in a B2B market, is a more heterogeneous process and before it is done, there should be made a clear distinction of trying to (1) influence an individual members of the DMU, (2) influence the customer firm, (3) influence a upstanding market segment, or (4) influence some(prenominal) market segments. The BD Group wants to sell their technology to other businesses. The technology concerned is a sophisticated communication technology, and the company is influenced this technology could have some(prenominal) benefits for other businesses. 2. Influencing individual members of the DMU Influencing individual members of the DMU is comparable with individuals in a consumer market, moreover the influence is in the first place limited to the knowledge and persuasion phase. The process for doing so, is called diffusion. Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social transcription (Rogers, 1995, p. 35). So when the BD Group wants to influence individual members of the DMU, they have to reach them personally or trough their social schemas.An effective way of acieving this, is by crack the new equipment now to these individuals, or to his or hers direct colleagues. When straining the communication system to this individual or his or hers social contacts, the benefits and the novelt y of the product should be emphasized. But because it concerns complex equipment only approaching the individual and explaining the benefits and novelty, would probably not be sufficient. In order to incline him or her, this person also has to control the product.To ensure a sufficient experience, (1) a trial version of the system could be offered, combined with a tutorial which shows the facilitate of use and the novelty of the product, or (2) a try-out event could be organized, in which the individual can directly ask questions to product beneficials when needed. These offers should of course meet the knowledge the individual that ( strength) already possess, and also should be doable in terms of costs and proficient possibilities for offering these instances. 2. 2 Influencing the customer firmBD Group could could also try to influence the whole customer firm. Influencing the customer firm can be done by make multiple levels within the firm. Given the likeliness of the pres ence of individuals of multiple classifications of the adoption model, i. e. innovators, archean adopters, archean majority, late majority and laggards, the manufacturing business should consider methods to reach these different segments, since this will result in a different attitude of the people within the firm towards the communication system.In order to make the communication system known to an organization, possible innovators and early adopters should be identified, because they can be used in later stages to convince the early and late majority to adopt the system, because late adopters overweight the current systems benefits over the new one by a factor of three (Gourville, 2006). The innovators and early adopters can be regarded as the first ones which are enthusiastic about the system, even when it is not flawless yet.Since they like to try something new and are regarded as the conviction leaders, they can convince decision makers to make use of the system. To ensure t hat they are convinced themselves, evidence from research, press releases or other third party confirmations could be provided to them. 2. 3 Influencing a whole market segment Because the technology of BD Group is sophisticated, it could also try to get market acceptance by emphasizing one particular part of the technology that really stands out, and offer this for free.By addressing one specific need or a service, and offer that particular service for free, the whole technology would be interpreted for granted. A good example of this came of other telephone technology business, RIM, it has made its service (ping) for free, but earned money by selling phones. Another possibility is to use traditional marketing tools, like advertisement campaigns. By using specific craftiness journals which can be addressed to specific market segment, businesses of this specific segment could get aware or familiar with the new communication system. Also using real partners can be beneficial.So co uld BD Group work together with another ( quick) phone company, like Motorola, to use their market access to make a market segment familiar with the new system. In addition to specialist journals an organization can also use specific Internet pages to inform visitors about the new system and offer them an tripping opportunity to learn more about the system. This should not be done by so called banners, since many visitors find them annoying, but by creating a short publicise on the home page for example. Finally, an organization can use an arrangement at which they can physically show the system to potential users.However, the effectiveness is really dep arresting on the market segment, but the gain is that an exhibition will mostly be visited by higher involved people of DMUs in the segment. 2. 4 Influencing several market segments To influence the broadest group of several market segments, an organization could try to influence the end user of the communications system, notwi thstanding the fact that the company is active in a B2B market, to make them aware of the product and convince the different market segments that there is replete demand for the new communications system.This influencing of the end user could be done with bare tools which will have the greatest potential reach. That are television commercials, radio messages and some Internet advertisements, excluding banners since these are more suited for products with lower involvement of the user. Part 3 Evaluating market acceptance Market acceptance can be described as the process in which a good or service satisfies the needs of a sufficiently large number of customers or business customers to continue or profit its production or availability.With this definition in mind, a set of variables will be put forward to measure the detail of market acceptance in the mobile phone market. BD Group will use these variables to measure the success of the Chicka Phone 1. stolon factors that can infl uence market acceptance of the consumer market are proposed and will be explained how to analyse these factors. After that, the like will be done for the B2B market. 3. 1 Evaluate Market acceptance in an consumer marketBy Huizingh (2008) it is tell that the adoption decision, which is the decision from a consumer or a company to buy a certain product, depends on four variables comprehend product characteristics, activities of the provider, characteristics of the customer and external factors. Therefore, for the BD Group it can be stated that the tip of market acceptance that will be achieved for the Chicka Phone 1 depends on these factors. Figure 2 Diverse group of factors which moderate market acceptance of an innovation In the competitive industry of mobile phones it might be difficult to find market acceptance.Moderators influencing market acceptance are mentioned preceding(prenominal) in a model. Variables that BD Group, a supplier of the new mobile phone can use to measur e the market acceptance of customers can be the following * follow of complaints of customers * Intensity of use * Total bandstand of customers * Profits on the Chicka Phone 1 * Increase of selling in different phases of the PLC * Amount of positive comments in social media * Amount of positive comments in expert sites The different variables are chosen, because of their relationship with market acceptance.This are indicators of market acceptance and are directly measurable. The indicators are measuring the academic full stop of market acceptance from the customers of the Chicka Phone 1. Factors influencing the degree of market acceptance of BD Group are different than the indicators mentioned. These are discussed in figure 2. 3. 2 Evaluate Market acceptance in an B2B market Following the same reasoning mentioned earlier, the influencing factors of the degree of market acceptance for the BD Group are comprehend product characteristics, activities of the supplier, characteristic s of the customer and external factors.Rogers argued that the rate of adoption of an innovation is determined by the perceived attributes of the innovation (relative advantage, compatibility, complexity, trialability, and observability), the type of innovation-decision (optional, collective, authority), communication channels (mass media or interpersonal), the nature of the social system and the extent of change agents promotion efforts. However, ascribable to the specifics of B2B market, the measuring variables differ comparing to consumers market. Economic factors initial cost may affect its rate of adoption, therefore by decreasing the price during diffusion process a rapid rate of acceptance can be expected * berth aspects one motivation for organizations to adopt an innovation is the desire to gain social military position (for example the CE mark on products increases customers trust, therefore many companies want to have it on their products and consecrate significant fee s to such organizations) * Relative advantage as organizations pass through the decision process, they are motivated to seek selective information in order to decrease uncertainty about the relative advantage of an innovation.Potential adopters want to know the degree to which a new system is better than the existing one. * load innovation in order to lower some unwanted future events, an organization might adopt the new system. * Compatibility with socio-cultural determine and beliefs previously introduced systems/ideas client needs for the innovation. 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