L8: Commercialization (communication)

Question 1

New product signal in communication examples

Answer 1

• Unofficial rumour before official pre-announcements
• Trade shows
• CEO speech to analysts
• Inform suppliers / manufacturers about complementary products.
• Comments by sales people, or appointment of sales people with certain industry experience

Question 2

Define the communication objectives in NPL

Answer 2

• Create awareness.
• Stimulate trial
• Positioning products
• Correct misconceptions
• Remind customers of special
• Provide support for the sales force.

Question 3

3 Benefits of social media for NPL

Answer 3

1) To reach mass markets by releasing info particularly through online communities.
2) To prompt customers search for new products and evoke viral effects.
3) To get post-launch feedback that strengthens the sense of community and customer engagement with the brand.

Question 4

4 Disadvantages of social media for NPL

Answer 4

1) Lack of control over empowered customers
2) Must develop new routines and capabilities to manage online customer interactions at launch.
3) Too much information and data.
4) Must commit resources / invest in web-based or mobile app.

Question 5

3 activities of social media innovation (Roberts and Piller, 2016)

Answer 5

• Explore: Identify market trends and generate customers insights; Sharpen the business acumen and teach them how to communicate the findings.
• Cocreate: Develop cooperative skills and facilitate interaction with users to involve them in the NPD.
• Communicate: Introduce new products in compelling ways; Generate awareness and publicize the launch of new products.

Question 6

Understanding the user’s motivation to comprehend how firms can leverage SNS for NPL (Roberts et al., 2017)

Answer 6

• Hedonic motives: Experience stimulating challenges, and Opportunities for escape. => Attention to advertisement
• Utilitarian motives: Seeking for information, and Seek for new connections. => WOM advocacy

Question 7

Attention to advertisement as a way to leverage the use of SNS (Roberts et al., 2017)

Answer 7

• The firm’s ability to create a desirable image of the product and position it in the mind of the customer.
• People use media to satisfy the psychological and social needs. So, SNS encourages greater participation with conversations facilitating entertainment, escapism and diversion.

Question 8

WOM advocacy as a way to leverage the use of SNS (Roberts et al., 2017)

Answer 8

• WOM has a persuasive and diffusive effect.
• SNS influences the impact on product judgement, attitude information and purchase decision-making; and signals the authenticity of the individual’s social identity to a group of other users.

Question 9

Social media definition (Kaplan and Haelein, 2010)

Answer 9

• A group of Internet-based applications that are built on technological foundations of Web 2.0, that allows the creation and exchange of user-generated content.
• Blogs, social networking sites, online review/rating sites, virtual game worlds, video sharing sites and online communities.

Question 10

The role of social media in NPD and NPL

Roberts et al., 2016; Roberts and and Candi, 2014

Answer 10

1) Open innovation
2) Market research: need and solution information => Complementarity effects (2014)
3) Formalization
4) Customer collaboration (2014)
5) Communication for NPL (2014)

Question 11

1) The use of SNS for Open innovation (Roberts et al., 2016)

Answer 11

• OI as a source of knowledge transfer: help to manage the knowledge flows into the firm. It will be successful if increasing the breadth and depth of search.
• Search strategy enables firm to learn and develop knowledge base. Firms that overcome localized search tendency and engage in more distant (open) search will have higher innovative performance.
• Over-searching risk: some ideas don’t receive full attention, or they come at the wrong time and place to be exploited.

Question 12

2) The use of SNS for Market research (5) (Roberts and Candi, 2014)

Answer 12

1) Unstructured and open fora for research, enabling dialogue and debate between C2C and B2C.
2) Listen and learn about problem areas and opportunities for NPD.
3) Selection of large samples of respondents who are not constrained by geography, distance, or time.
4) Track communication, use predictive analysis and act on emerging consumer trends in real time.
5) Test new ideas / product concepts quickly.
Ex: Beiersdorf used SNS and “netnography” to develop the new Nivea range of products.

Question 13

2a) The use of SNS for Needs information (Roberts et al., 2016)

Answer 13

• May not be representative of the firm’s current target market, but exhibit lead user characteristics - driven by the motivation to solve an open problem of their own, and hence engage in the active development of new concepts.
• They often freely reveal their solutions to community and so to any observer.

Question 14

2b) The use of SNS for Solution information (Roberts et al., 2016)

Answer 14

• Technical knowledge embodies the “solution”, which is info about how to apply a technology to transform customer needs into new products or services.
• Better solution info enables developers to engage in more direct problem-solving activities, enabling project to meet cost and time-to-market objectives.

Question 15

a)+b) The use of SNS for complementary effects (Roberts et al., 2016)

Answer 15

• The ability to benefit from external search depends on complementary internal process of how information is gathered.
• Need info and solution info can provide guidance and filter vast information about customers problems / needs.

Question 16

3) The use of SNS for “Formalization” (5) (Roberts et al., 2016)

Answer 16

• Definition: the roles, operating procedures, and ways of communication are defined and used to govern the interaction between people.
  1) Facilitate better decision-making when processing info acquired from SNS.
  2) Support the diffusion and transformation of knowledge, making knowledge easier to apply.
  3) Establish guidelines for communication and exchange.
  4) Increase cooperation between employees.
  5) Build a sense of structure and ↓ ambiguity for the flow of activities - what info is required and how to acquire.

Question 17

4) The use of SNS for Customer collaboration (Roberts and Candi, 2014)

Answer 17

• Definition: The need to collaborate, learn and involve customers throughout the entire MKT process. Ex: Lego
  1) Reduce the product rejection risk
  2) More favorable behavioural intention
  3) Stronger bonds between company and customers
  4) Improve the idea generation process and product development (products highly match customers’ needs).

Question 18

5) The use of SNS for Communicating new innovation (Roberts and Candi, 2014)

Answer 18

• SNS can provide innovative and interactive means of communicating with customers, which creates awareness, generates interest and trial among TA.
• SNS be consistent with traditional methods of comm.
• Use of WOM to create “buzz” around a NPL, which stimulate demand and early product acceptance.
  Ex: Evian’s roller skating babies.

Question 19

The role of SNS (according to stages) (Muniger et al., 2019)

Answer 19

[1] Ideation stage: to ↑ input from consumers with less cost. 2 ways: Text and data mining, or Online contest and crowdsourcing (ex: YourBuzz - consolidate feedback).
[2] Development stage: to encourage concepts, prototypes and evaluation because they facilitate interactions and info sharing across teams. (ex: Linux software development)
[3] Commercialization stage: to release info to online community to reach mass market (ex: Sim4).

Question 20

Key resources and capabilities that allow companies to leverage SNS throughout innovation process (Muniger et al., 2019)

Answer 20

1) Resource combination
2) Skills and competencies
3) Processes

Question 21

Resource combination for social media use in the innovation process (Muniger et al., 2019)

Answer 21

[1] Operational and strategic social media teams.
[2] Social media manager with skills to orchestrate social media activities.
[3] Digital infrastructure, time and budget allocation.

Question 22

Skills and competencies for social media use in the innovation process (Muniger et al., 2019)

Answer 22

[1] Knowledge management: Firms fail to use SNS in innovation process due to the inability to filter and share the relevant information internally.
[2] Top management understanding: encourage connectivity and knowledge integration, and pursue digitization in company.
[3] Networking and collaboration: internal (top management and other departments) and external (users, suppliers, co-creators, cross-functional team)

Question 23

Processes for social media use in the innovation process (Muniger et al., 2019)

Answer 23

[1] Flexible process: Act quickly; and anticipate and respond to market opportunities.
[2] Structured process: Collaborations with external counterparts and Synergistic effects between innovation process and their social media initiatives.

Question 24

Three levels of maturity in using SNS for innovation (Muniger et al., 2019)

Answer 24

Explorers > Gold diggers > Trailblazers

Question 25

WOMM definition (Word of Mouth Marketing Association, 2007).

Answer 25

• Giving people a reason to talk about your products and services, and making it easier for that conversation to take place. It is the art and science of building active, mutually beneficial C2C and C2M communications.
• 2 types: refer-a-friend program and seeding program

Question 26

WOMM campaign over Advertising (Lopez and Sicilia, 2013)

Answer 26

• More awareness, as consumers actively avoid advertising due to an overwhelm number of ad.
• More WOM comm, as consumers try to build social relations (for reputation).
• More information, as motivating consumers more in searching for products after hearing through WOM.
• Greater impact on product adoption as WOM generates strong and trustworthy impression on new product.

Question 27

How to generate awareness with WOMM before NPL (Lopez and Sicilia, 2013)

Answer 27

1) Encourage consumers to join in NPD by asking them opinions about new product.
2) Give consumers unique info via email, video or blog.
3) Seeding campaign with the help of KOL or consumers.