Page 304 - Foundations of Marketing

Product, Branding, and Packaging Concepts | Chapter 10 271

on incandescent bulbs—manufacturers are beginning to implement plans to phase them out
of their product mixes.
During a product’s decline, outlets with strong sales volumes are maintained, and unprofi t-
able outlets are eliminated. An entire marketing channel may be eliminated if it does not con-
tribute adequately to profi ts. An outlet not used previously, such as a factory outlet or Internet
retailer, sometimes will be used to liquidate remaining inventory of an obsolete product. As
sales decline, the product becomes more inaccessible, but loyal buyers seek out resellers who
still carry it. Spending on promotion efforts is usually reduced considerably. Advertising of
special offers may slow the rate of decline. Sales promotions, such as coupons and premiums,
may regain buyers’ attention temporarily. As the product continues to decline, the sales staff
shifts its emphasis to more profi table products.

PRODUCT ADOPTION PROCESS LO 5 . Describe the product
adoption process.

Acceptance of new products—especially new-to-the-world products—usually doesn’t happen
overnight. In fact, it can take a very long time. People are sometimes cautious or even skepti-
cal about adopting new products, as indicated by some of the remarks quoted in Table 10.1 .
Consumers sometimes wait until the “second generation” of a new product to ensure a more
reliable product experience. Customers who eventually accept a new product do so through an
adoption process. Figure 10.4 details the product adoption process. The stages of the product
adoption process are as follows:
Awareness. The buyer becomes aware of the product.
Interest. The buyer seeks information and is receptive to learning about the product. product adoption process The
Evaluation. The buyer considers the product’s benefits and decides whether to try it, stages buyers go through in
considering its value versus the competition. accepting a product

Table 10.1 Most New Ideas Have Their Skeptics

“I think there is a world market for maybe fi ve computers.”
—Thomas Watson, chairman of IBM, 1943
“This ‘telephone’ has too many shortcomings to be seriously considered as a means of
communication. The device is inherently of no value to us.”
—Western Union internal memo, 1876
“The wireless music box has no imaginable commercial value. Who would pay for a
message sent to nobody in particular?”
—David Sarnoff’s associates in response to his urgings
for investment in the radio in the 1920s

“The concept is interesting and well formed, but in order to earn better than a C, the idea
must be feasible.”
—A Yale University management professor in response to Fred Smith’s paper proposing
reliable overnight delivery service (Smith went on to found Federal Express Corp.)
“Who the hell wants to hear actors talk?”
—H. M. Warner, Warner Brothers, 1927
“A cookie store is a bad idea. Besides, the market research reports say America likes crispy
cookies, not soft and chewy cookies like you make.”
—Banker’s response to Debbie Fields’s idea of starting Mrs. Fields’ Cookies
“We don’t like their sound, and guitar music is on the way out.”
—Decca Recording Company rejecting the Beatles, 1962
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