When is it Worthwhile Targeting the Majority Instead of the Innovators in a New Product Launch?

Abstract

Despite the relatively small number of Innovators in a potential market for a new product, they are often the main target of a firm's marketing efforts. Because the Innovators tend to influence the remaining potential adopters, that is, the Majority, firms tend to allocate more marketing efforts and resources toward the Innovators than toward the Majority. Using a two-stage game model with a diffusion effect, the authors analytically investigate whether this is always an optimal strategy. They identify several market and competitive conditions in which it might be optimal for firms to target the Majority rather than the Innovators. The managerial implications of these conditions for new product launch are discussed.