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1、DiffusionofInnovationProductstendtogothrougha lifecycle. Initially,aproductisintroduced.Sincetheproductisnotwellknownandisusuallyexpensive(e.g.,asmicrowaveovenswereinthelate1970s),salesareusuallylimited.Eventually,however,manyproductsreacha growth phase—sales
2、increasedramatically.Morefirmsenterwiththeirmodelsoftheproduct.Frequently,unfortunately,theproductwillreacha maturity stagewherelittlegrowthwillbeseen.Forexample,intheUnitedStates,almosteveryhouseholdhasatleastonecolorTVset.Someproductsmayalsoreacha decline s
3、tage,usuallybecausetheproductcategoryisbeingreplacedbysomethingbetter.Forexample,typewritersexperienceddecliningsalesasmoreconsumersswitchedtocomputersorotherwordprocessingequipment.Theproductlifecycleistiedtothephenomenonofdiffusionofinnovation.Whenanewprodu
4、ctcomesout,itislikelytofirstbeadoptedbyconsumerswhoaremoreinnovativethanothers—theyarewillingtopayapremiumpriceforthenewproductandtakeariskonunproventechnology.Itisimportanttobeonthegoodsideofinnovatorssincemanyotherlateradopterswilltendtorelyforadviceonthein
5、novatorswhoarethoughttobemoreknowledgeableaboutnewproductsforadvice.AtlaterphasesofthePLC,thefirmmayneedtomodifyitsmarketstrategy.Forexample,facingasaturatedmarketforbakingsodainitstraditionaluse,ArmüHammerlaunchedamajorcampaigntogetconsumerstousetheproductto
6、deodorizerefrigerators.Deodorizingpowderstobeusedbeforevacuumingwerealsocreated.Itissometimesusefultothinkofproductsasbeingeither new or existing.Manyfirmstodayrelyincreasinglyonnewproductsforalargepartoftheirsales.Newproductscanbenewinseveralways.Theycanbe n
7、ewtothemarket—nooneelseevermadeaproductlikethisbefore.Forexample,Chryslerinventedtheminivan.Productscanalsobenewtothe firm—anotherfirminventedtheproduct,butthefirmisnowmakingitsownversion.Forexample,IBMdidnotinventthepersonalcomputer,butenteredafterotherfirms
8、showedthemarkettohaveahighpotential.Productscanbe newtothesegment—e.g., cellularphonesandpagerswerefirstaimedatphysiciansandotherprice-insensitivesegments.Later,firmsdecidedtotargetthemor
