MARK 3000 chapter 12
Questions and Answers Verified
Solutions Latest Update
(2026/2027)
Question:
- innovation - the process by which ideas are
innovation
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
- changing customer needs- healthier greener
why do companies need to innovate
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
- weight watchers + wonder natural foods = co
improving business relationships
branded innovation
-Product Development - Coca-Cola -> Diet Coke -
Changing customer needs
,> 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
- Jeni's Splendid Ice Cream is a strong case study
market saturation
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
- General Mills is diversifying its product portfolio
managing risk through diversity
across
flavors, nutritional formats, and consumer
segments.
- This strategy protects the brand from shifting
consumer
preferences, category stagnation, and competitive
pressure.
- PIONEERS radically change competition and
innovation pioneer
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
- the process by which the USE OF AN
Diffusion of Innovation
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
- Not all pioneers succeed. In many cases, imitators
failed pioneers
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
- As the diffusion of innovation curve shows, THE
diffusion of innovation curve
NUMBER OF USERS OF AN INNOVATIVE
PRODUCT OR SERVICE SPREADS THORUGH THE
POPULATION OVER A PERIOD OF TIME and
generally follows a bell-shaped curve.
- A few people buy the product or service at first,
then more buy, and finally fewer people buy as the
degree of the diffusion slows. THESE
PURCHASERS CAN BE DIVIDED INTO FIVE
GROUPS ACCORIDNG TO HOW SOON THEY BUY
THE PRODUCT AFTER IT HAS BEEN
INTRODUCED; INNOVATORS, EARLY ADOPTERS,
EARLY MAJORITY, LATE MAJORITY, AND
Questions and Answers Verified
Solutions Latest Update
(2026/2027)
Question:
- innovation - the process by which ideas are
innovation
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
- changing customer needs- healthier greener
why do companies need to innovate
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
- weight watchers + wonder natural foods = co
improving business relationships
branded innovation
-Product Development - Coca-Cola -> Diet Coke -
Changing customer needs
,> 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
- Jeni's Splendid Ice Cream is a strong case study
market saturation
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
- General Mills is diversifying its product portfolio
managing risk through diversity
across
flavors, nutritional formats, and consumer
segments.
- This strategy protects the brand from shifting
consumer
preferences, category stagnation, and competitive
pressure.
- PIONEERS radically change competition and
innovation pioneer
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
- the process by which the USE OF AN
Diffusion of Innovation
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
- Not all pioneers succeed. In many cases, imitators
failed pioneers
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
- As the diffusion of innovation curve shows, THE
diffusion of innovation curve
NUMBER OF USERS OF AN INNOVATIVE
PRODUCT OR SERVICE SPREADS THORUGH THE
POPULATION OVER A PERIOD OF TIME and
generally follows a bell-shaped curve.
- A few people buy the product or service at first,
then more buy, and finally fewer people buy as the
degree of the diffusion slows. THESE
PURCHASERS CAN BE DIVIDED INTO FIVE
GROUPS ACCORIDNG TO HOW SOON THEY BUY
THE PRODUCT AFTER IT HAS BEEN
INTRODUCED; INNOVATORS, EARLY ADOPTERS,
EARLY MAJORITY, LATE MAJORITY, AND
