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Takeoff

Part 5. Product Innovation and Management

  1. Christophe Van den Bulte

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem05043

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Van den Bulte, C. 2010. Takeoff. Wiley International Encyclopedia of Marketing. 5.

Author Information

  1. University of Pennsylvania, Philadelphia, PA, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

Takeoff is the first marked increase in sales of a new product. This corresponds to the transition between the introduction and growth stages of the product life cycle, and to the kink in the hockey-stick pattern of new product or market sales. Takeoff is important to managers and investors as it greatly affects the timing of cash inflows and of necessary investments in manufacturing, logistics, marketing communications, and customer support. Having some consensus within the company about when the product is likely to take off also prevents management from prematurely “pulling the plug” on a slow-selling new product. Research indicates that, on average, new-product categories experience takeoff 5–15 years after launch. Recent research indicates that the entry of new firms rather than price declines is the main trigger of takeoff. There is no strong evidence that economic conditions or national culture greatly affect the time to takeoff.

Keywords:

  • diffusion of innovations;
  • innovation diffusion;
  • new products;
  • product life cycle;
  • stages of market development