Innovation
Innovation
Innovation
individual or other unit of adoption. It may be new variety/ breed of fish, new chemicals or
medicines, new techniques of doing things etc. Sometimes farmers also develop new
practice which is also consider as an innovation.
“The practical implementation of ideas that lead to the introduction of new goods or
services, or improvements to existing ones. Innovation can also involve redesigning
workflows, technologies, and systems to improve the delivery of products or services.”
Adoption: “Adoption is the decision-making process” to make full use of an innovation as the
best course of action available.
Here are some definitions for innovation: firm-oriented, product-oriented, market-oriented,
and consumer-oriented:
Firm-oriented - Product is “new” to the company
An approach that considers the newness of a product from a firm's perspective.
Product-oriented -- Continuous -- Dynamically continuous -- Discontinuous
A management philosophy that focuses on the quality of a product rather than the
needs of the target market. Product-oriented companies create unique and
innovative products or services, but don't focus as much on market size or potential
demand.
Market-oriented - Based on consumer exposure
A focus on creating products that meet customer needs and demands, based on
market research and findings. Market-oriented companies focus on potential
demand for their products.
Consumer-oriented - Consumer judges it as “new”
A focus on the needs, wants, and satisfaction of customers, and understanding and
empathizing with each individual.
Types of Innovations : The definition of what is a “new product” varies among product
developers and marketing strategists. From a consumer perspective, an innovation
represents any item that the consumer perceives as new.
Many marketers maintain that new products should be classified into three categories
reflecting the extent to which they require consumers to change existing consumption
behavior or buying patterns.
1. A continuous innovation has the least disruptive influence on established behavior. It
involves the introduction of a modified product rather than a totally new product.
Examples include the newly redesigned Apple MacBook, the latest version of Microsoft
Office, reduced-fat Oreo cookies, Hershey Cacao (i.e., a form of dark) chocolate bars,
American Express gift cards, Band-Aid Tough-Strips, and the Oral-B® Advantage Glide.
2. A dynamically continuous innovation is somewhat more disruptive than a continuous
innovation but still does not alter established behavior. It may involve the creation of a new
product or the modification of an existing product. Examples include digital cameras, digital
video recorders, MP3 players, DVRs, USB flash drives, and disposable diapers.
3. A discontinuous innovation requires consumers to adopt new behavior. Examples include
airplanes, radios, TVs, automobiles, fax machines, PCs, videocassette recorders, medical
self-test kits, and the Internet.
2. Early Adopters: (Respectable) Early adopters are actually the best target market for
new innovations. These people tend to be well-educated “opinion leaders” with
neighbors and friends, and their product advice is generally accepted more readily
than product advice provided by innovators.
Initially, the innovation is adopted by a small group of people known as early
adopters. These individuals are often risk-takers and are eager to try new things.
While innovators are cosmopolite, early adopters are localite. They are more
integrated in the local social system than the innovators
3. Early Majority: (Deliberate) The early majority typically look to the innovators and
early adopters to determine if the new product meets expectations because they don’t
want to take the risk of being the first to adopt the new product, but they do accept
innovation before the “average person.” This group of consumers is typically above
average in terms of education and income but also tend to be “followers” in their
social group.
As the early adopters embrace the innovation, it begins to gain traction among the
early majority. This group comprises a larger segment of the population and tends to
adopt new products after they have been proven successful by the early adopters.
Strategies to appeal to this population include success stories and evidence of the
innovation's effectiveness.
4. Late Majority: (Skeptical, Doubtful, Suspicious) Following the early majority, the late
majority starts to adopt the innovation. This group tends to be more skeptical and
adopts new products only after they have become mainstream.
About 34 percent of the population will buy a new product only after about half of the
population does. They’re not interested in the “bells and whistles” (i.e., functionality
and benefits) of the “latest model” and want simple, cost-effective products that focus
on specific uses. As a general rule, their income and education are limited, and
they’re typically unwilling to take a chance with a new product unless the majority of
consumers has already adopted the innovation.
5. Laggards: (Traditional) Finally, the laggards are the last group to adopt the innovation.
They are typically resistant to change and may continue using older products or
methods for an extended period.
Throughout this process, various factors influence the diffusion of the innovation, including
marketing efforts, word-of-mouth recommendations, perceived benefits, price, and
accessibility. Marketers often employ strategies to facilitate the diffusion process, such as
targeted advertising campaigns, product demonstrations, and incentivized referrals to
accelerate adoption rates among different consumer segments. Understanding the diffusion
process is crucial for businesses to effectively launch and promote new products or services
in the market.
Adopter Categories
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mini netbook netbook shortly 1st ½ of the the “mass purchase the mini
after its “mass market” market” who netbook, if at all
introduction who would would purchase
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New Product Adopter Categories
The Adoption Process The innovation adoption process consists of five stages through which
potential consumers pass in attempting to arrive at a decision to try or not to try a new or
innovative product.
The five stages are:
1. Awareness: The consumer becomes aware that an innovation exists.
2. Interest: The consumer becomes interested in the innovative product or service.
3. Evaluation: The consumer undertakes a “mental trial” of the innovation.
4. Trial: The consumer tries the innovation.
5. Adoption: If satisfied, the consumer decides to use the innovation repeatedly.
2. Interest: After becoming aware of the product, the consumer develops an interest in
learning more about it. They may seek out additional information, read reviews, or
compare it to similar offerings in the market.
such as a website, blog posts, tutorials, or instructional videos.
Let’s go back to our mouthwash example. You’re intrigued with
the concept that a mouthwash can whiten your teeth, so you call
your brother who’s a dentist to ask if he’s familiar with the
product and what he has to say about it. That’s product interest.
3. Evaluation: In this stage, the consumer evaluates the new product or innovation
based on its perceived benefits, features, and value proposition. They consider how
well it meets their needs and whether it represents an improvement over existing
alternatives.
In our example of the mouthwash, you might do an Internet
search to read reviews of the product before you actually
purchase it. That’s product evaluation.
4. Trial: If the consumer is sufficiently convinced of the product's merits during the
evaluation stage, they may choose to try it out for themselves. This could involve
purchasing the product or service, using a free trial or sample, or participating in a
demonstration.
It might be a free sample in a retail store or a “100 percent money-back
guarantee” trial purchase of an online product. This is also the stage in
which marketers are hoping that the product will deliver on consumer
expectations.
5. Adoption: The individual actually applies the new idea on a small scale in order to
determine its utility in own situation. The final stage of the adoption process occurs
when the consumer decides to fully integrate the new product or innovation into their
regular consumption patterns. They become regular users or consumers of the
product and incorporate it into their daily routines.
As a marketer, hopefully you’ve made the acquisition and
payment process as seamless as possible so that your customers
can easily obtain your product.
Throughout the adoption process, various factors can influence the consumer's decision-
making, including perceived benefits, ease of use, compatibility with existing habits and
preferences, social influences, and personal experiences. Marketers often tailor their
strategies to address consumers' needs and concerns at each stage of the adoption
process, with the goal of facilitating a smooth transition from awareness to adoption.
Understanding the adoption process is essential for businesses seeking to effectively
introduce and promote new offerings in the market.
The Consumer Innovator
• The earliest purchasers of a new product
• Tend to have higher level of:
– Education
– Social interaction
– Opinion leadership
– Venturesomeness
– Social Status
• Personality traits
– Perceived risk and venturesomeness
– Purchase and consumption characteristics
– Media habits
• Social characteristics
• Demographic characteristics