8. product launch Flashcards
Launch strategy vs laucnh tactics
Strategy (what, when, where)
- Innovativeness (incremental vs radical
- Leadership (lead vs follow)
- Target market (niche vs mass)
Tactics (how)
- Promotion
- Distribution
- Pricing
- Product (branding, assortment, bunding
- Timing
Benefits of being first to market (leader)
- Building customer loyalty/switching costs
- Innovative image
- Define product standards
- Select best market position
_ preemption of scarce assets (distribution channels, resources, suppliers) - Benefit earlier from learning curve effects
Benefits of imitating
- Learn from the first enterer and improve your product
- Less market risk
- Lower R&D costs
- Less need to educate the market
- Opportunity to leapfrog first mover
- Directly focusing on mass market (rather than innovators)
What are the moderators of the effect of Order of entry on Performance?
- IP strengths ([atents)
- Innovativeness product
- Rate of technological change’
- Customer switching costs
- Degree of customer education
- Capabilities imitator/first mover
radical vs incremental innovations
- Incremental innovation
- Minor opportunities for competitive advantage
- low risks
- relatively low budget requirements - radical innovations
- Major opportunities for comp. advabtage
- High risks
- relatively high budget requirements
What are different type of innovations?
- incremental = new flavors + improvements
- Moderate = new features
- radical = New category
Where on the scale of innovations do you want to be?
Not in the middle, because moderate innovations costs quite some money and do not lead to high incomes, the other two have more benefits, incremental has low costs and radical has better opportunities
According to Sorescu et al, where do innovative products come from?
Dominant firms
What is the effect of innovativeness on performance (Sorescu)?
Radical innovations are valued the most. Than technological breakthroughs and lastly market breakthroughs. So radical innovations do pay off in this industry (pharmacy with big patents).
Does it matter who introduces the innovation? (Sorescu)?
Yes, dominant firms come up with more radical innovations, which are worth more. Innovations of dominant firms are valued higher
Small steps or giant leaps?
Small steps = incremental innovation
giant leaps = radical innovation
Both are needed, one is not better than another and they cannot replace each other. Both have their benefits and disadvantages.
What are 2 different types of learning?
- Exploration
Learning activities characterized by search, discovery, experimentation, risk taking.
Returns are variable and distant in time - Exploitation
Learning activities characterized by refinement, improvement, efficiency
Results are more certain and closer in time
What si the learning process>
Learning activities -> product innovativeness -> product performance
How to combine exploration with exploitation?
- Ambidexterity: seperate exploration and exploitation in different units
- Outsourcing/alliances
- Switch between long periods of exploitation and short periods of exploration
What is product preannouncement?
any anouncement or move from which it can be deducted that a specific new product is coming, preceding the actual introduction of that particular new product
