MARK 3000 chapter 12 | Questions with 100%
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Terms in this set (49)
innovation - innovation - the process by which ideas are
transformed into new offerings.
- Without innovation, firms have two options:
1) Continue to market current products to current
consumers
2) Take the same product to a new market
why do companies need to innovate - changing customer needs- healthier greener
consumers
- market saturation- everyone that wanted the
product got it, so no more growth
- managaing risk through diversity- multiple
products can better withstand shocks like changes
in consumer preferences
- fashion cycles- products that rely on fashion
trends (apparel, arts, books, videogames) have a
short lifecycle
- improving business relationships- walkmart asks
suppliers for info about all their products
improving business relationships - weight watchers + wonder natural foods = co
branded innovation
,Changing customer needs -Product Development - Coca-Cola -> Diet Coke -
> Coke Zero -> Coca-Cola life
- consumers wanted "diet" options, so Diet Coke
was created.
• Men don't do "diets"... Coke Zero.
• Calorie counts and resistance to high-fructose
corn syrup... Coca-Cola Life (lower cal, with Stevia
market saturation - Jeni's Splendid Ice Cream is a strong case study
for how a premium brand continues to grow even
as the ice cream category becomes crowded and
mature.
- In a saturated market, companies must expand
distribution, differentiate heavily, and find new
customer touchpoints— exactly what Jeni's has
done.
• Premium Pricing
• Exclusive Varieties
• 90 shops + grocery distribution
• Franchise model focuses on community, creativity
and
partnerships... not just transactions
managing risk through diversity - General Mills is diversifying its product portfolio
across
flavors, nutritional formats, and consumer
segments.
- This strategy protects the brand from shifting
consumer
preferences, category stagnation, and competitive
pressure.
, innovation pioneer - PIONEERS radically change competition and
consumer preferences by introducing new-to-the-
world product.
- Pioneers are the first to create the market or
product category and they become readily
recognizable to consumers and thus establish a
commanding and early
market share lead
- studies also have found that market pioneers can
command a greater market share over a longer
period than later entrants can
- Coke freestyle, Tesla, Nest, Apple Watch
Diffusion of Innovation - the process by which the USE OF AN
INNOVATION - whether a product, a service, or a
process - SPREADS THROUGHOUT A MARKET
GROUP, OVER TIME AND ACROSS VARIOUS
CATEGORIES OF ADOPTERS, is referred to as
diffusion of innovatioN
failed pioneers - Not all pioneers succeed. In many cases, imitators
capitalize on the weaknesses of pioneers and
subsequently gain advantage in the market.
• Google Glass
• Sony Betamax - JVC launched VHS a year later
• Apple Newton - ahead of it's time ( jumped over
by Blackberry
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (49)
innovation - innovation - the process by which ideas are
transformed into new offerings.
- Without innovation, firms have two options:
1) Continue to market current products to current
consumers
2) Take the same product to a new market
why do companies need to innovate - changing customer needs- healthier greener
consumers
- market saturation- everyone that wanted the
product got it, so no more growth
- managaing risk through diversity- multiple
products can better withstand shocks like changes
in consumer preferences
- fashion cycles- products that rely on fashion
trends (apparel, arts, books, videogames) have a
short lifecycle
- improving business relationships- walkmart asks
suppliers for info about all their products
improving business relationships - weight watchers + wonder natural foods = co
branded innovation
,Changing customer needs -Product Development - Coca-Cola -> Diet Coke -
> Coke Zero -> Coca-Cola life
- consumers wanted "diet" options, so Diet Coke
was created.
• Men don't do "diets"... Coke Zero.
• Calorie counts and resistance to high-fructose
corn syrup... Coca-Cola Life (lower cal, with Stevia
market saturation - Jeni's Splendid Ice Cream is a strong case study
for how a premium brand continues to grow even
as the ice cream category becomes crowded and
mature.
- In a saturated market, companies must expand
distribution, differentiate heavily, and find new
customer touchpoints— exactly what Jeni's has
done.
• Premium Pricing
• Exclusive Varieties
• 90 shops + grocery distribution
• Franchise model focuses on community, creativity
and
partnerships... not just transactions
managing risk through diversity - General Mills is diversifying its product portfolio
across
flavors, nutritional formats, and consumer
segments.
- This strategy protects the brand from shifting
consumer
preferences, category stagnation, and competitive
pressure.
, innovation pioneer - PIONEERS radically change competition and
consumer preferences by introducing new-to-the-
world product.
- Pioneers are the first to create the market or
product category and they become readily
recognizable to consumers and thus establish a
commanding and early
market share lead
- studies also have found that market pioneers can
command a greater market share over a longer
period than later entrants can
- Coke freestyle, Tesla, Nest, Apple Watch
Diffusion of Innovation - the process by which the USE OF AN
INNOVATION - whether a product, a service, or a
process - SPREADS THROUGHOUT A MARKET
GROUP, OVER TIME AND ACROSS VARIOUS
CATEGORIES OF ADOPTERS, is referred to as
diffusion of innovatioN
failed pioneers - Not all pioneers succeed. In many cases, imitators
capitalize on the weaknesses of pioneers and
subsequently gain advantage in the market.
• Google Glass
• Sony Betamax - JVC launched VHS a year later
• Apple Newton - ahead of it's time ( jumped over
by Blackberry
