Takeoff
DESCRIPTION
The transitional point in the life cycle of a new product or service where it moves from introduction to growth to achieve its viability.
The transitional point in the life cycle of a new product or service where it moves from introduction to growth to achieve its viability.
KEY INSIGHTS
Takeoff is a concept in diffusion models of new products or services that represents an important stage in the product’s market development. It is usually represented by a dramatic increase in sales. It requires an increase in support of the offering, through investing more resources where marketers make decisions on issues including investing in research on the product/process, spending more on promotion, and enhancing distribution (Golder and Tellis 1997).
Takeoff is a concept in diffusion models of new products or services that represents an important stage in the product’s market development. It is usually represented by a dramatic increase in sales. It requires an increase in support of the offering, through investing more resources where marketers make decisions on issues including investing in research on the product/process, spending more on promotion, and enhancing distribution (Golder and Tellis 1997).
KEYWORDS New product introductions, growth, product viability
IMPLICATIONS
The concept of takeoff is in opposition to the assumption of constant and linear growth pattern of new products. Hence, takeoff and its implications have to be foreseen and accounted for from early planning stages. A better understanding of its nature, drivers, systematic patterns, and when it takes place can provide the marketer with highly beneficial insights for marketing planning and strategy development.
The concept of takeoff is in opposition to the assumption of constant and linear growth pattern of new products. Hence, takeoff and its implications have to be foreseen and accounted for from early planning stages. A better understanding of its nature, drivers, systematic patterns, and when it takes place can provide the marketer with highly beneficial insights for marketing planning and strategy development.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Agarwal, Rajshree, and Bayus, Barry L. (2002). ‘The Market Evolution and Sales Take-off of Product Innovations,’ Management Science, 48, August, 1024–1041.
Agarwal, Rajshree, and Bayus, Barry L. (2002). ‘The Market Evolution and Sales Take-off of Product Innovations,’ Management Science, 48, August, 1024–1041.
International Marketing
Tellis, G. J., Stremersch, S., and Yin, E. (2002). ‘The International Takeoff of New Products: The Role of Economics, Culture, and Country Innovativeness,’ Report of the Marketing Science Institute Cambridge Massachusetts, ISSU 121.
Tellis, G. J., Stremersch, S., and Yin, E. (2002). ‘The International Takeoff of New Products: The Role of Economics, Culture, and Country Innovativeness,’ Report of the Marketing Science Institute Cambridge Massachusetts, ISSU 121.
Marketing Research
Tellis, Gerard J., Golder, Peter N., and Foster, Joseph A. (2004). ‘Predicting Sales Takeoff for Whirlpool’s New Personal Valet,’ Marketing Science, 23(2), 180–191.
Tellis, Gerard J., Golder, Peter N., and Foster, Joseph A. (2004). ‘Predicting Sales Takeoff for Whirlpool’s New Personal Valet,’ Marketing Science, 23(2), 180–191.
BIBLIOGRAPHY
Golder, Peter N., and Tellis, Gerard J. (1997). ‘Will It Ever Fly? Modeling the Takeoff of Really New Consumer Durables,’ Marketing Science, 16(3), 256–270.
Golder, Peter N., and Tellis, Gerard J. (1997). ‘Will It Ever Fly? Modeling the Takeoff of Really New Consumer Durables,’ Marketing Science, 16(3), 256–270.
target costing see pricing strategies