Assignment: Create the Value
3.1: Diffusion of Innovation and Product Concepts
Assessment: This part of the assignment will be assessed using the following criteria:
• Understanding of the factors that influence the adoption and diffusion of innovation.
• Identification and description of the marketing mix implications of each factor in this context.
As a member of Microsoft's a new product team you participated in the development and marketing of "Surface" the company's entry into the tablet world.
Go to Microsoft's website at https://www.microsoft.com/Surface/en-CA. Review the product information about their tablet, the Surface.
1. Consider the product factors that influence the rate of adoption and diffusion of innovation. For each of the five factors, explain how that factor might affect the speed of the adoption of the new tablet, the Surface. Will each factor increase or decrease the rate of adoption?
2. Identify five other non-product-related factors that might influence the rate of diffusion of innovation. Draw from your own experience on what influenced you to buy or not to buy a new product.
3. Then make five marketing recommendations to the Microsoft's team manager that will speed the adoption of the new product now that it has been introduced. These might relate to personal factors, sociocultural factors, organizational factors, or other factors outside of the control of marketers.
3.2: Product Management Concepts
Assessment: This part of the assignment will be assessed using the following criteria:
• Comprehensiveness
• Depth of insight and analysis
• Rationale/support for the conclusions drawn
Go to the Internet and log onto Starbucks' website at https://www.starbucks.ca. At the bottom of the home page under "About Us" read about the company's heritage, company, and investor relations (overview). Go back to the top of the home page and review the products, menu offerings, and the responsibilities of the company. If you have an opportunity visit a Starbucks store. (This is not necessary to successfully complete this part of the assignment.)
Now answer the following five questions:
1. In spite of heavy competition from other coffee retailers in the marketplace, Starbucks secured the largest market share. What five factors do you think accounted for Starbucks' success in securing its market share?
2. Using marketing concepts, terms, and information from this module, describe Starbucks' product strategy of in terms of:
o Product concept: core, actual, augmented, and potential product.
o Product line: width, length, depth, and product line strategy.
3. Describe and evaluate the branding strategy for Starbucks. What are the main advantages and disadvantages of this strategy?
4. Given Starbucks' growth all over the world, how would you recommend they organize their marketing effort (the structure of the people) for managing existing products and developing new products?
5. In your opinion, what stage of the product life cycle are Starbucks' products? What makes you think so? What are the marketing mix implications of being in this stage? Discuss product strategy, pricing strategy, distribution strategy, and communication strategy implications.
3.3: Pricing Strategy
Assessment: This part of the assignment will be assessed using the following criteria:
• Comprehensiveness
• Depth of insight and analysis
• Rationale/support for the conclusions drawn
When pricing a new product, a marketer will select a strategy from several different price strategy options. The most common strategies used are skimming price and penetration price.
1. What are the advantages and disadvantages of each of these two price strategies for the organization?
2. What are the advantages and disadvantages of each of these two price strategies for the customer?
3.4: Report Structure and Presentation
Remember, you will be judged by the structure, clarity, presentation, and quality of your work. Prepare and present your assignment in a formal manner suitable for business.
To ensure the quality of your written work, refer to the Assignment and Final Project Structure under the Course Overview on the course home page in Blackboard.