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    Diffusion of Innovations

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    ArnabBhattacharjee
    The document discusses the concept of diffusion of innovations, which is the process by which new products and services are adopted by consumers. It describes the diffusion and adoption process, in which consumer innovators are the first to purchase new products. The document also defines different types of innovations based on the amount of change required, such as continuous, dynamically continuous, and discontinuous innovations. It then discusses factors that affect the spread of innovations, including the type of group, marketing efforts, compatibility, relative advantage and more. Finally, it outlines the categories of adopters and discusses marketing strategies for different adoption stages.

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    Diffusion of Innovations

    Uploaded by

    ArnabBhattacharjee
    105 views15 pages
    The document discusses the concept of diffusion of innovations, which is the process by which new products and services are adopted by consumers. It describes the diffusion and adoption process, in which consumer innovators are the first to purchase new products. The document also defines different types of innovations based on the amount of change required, such as continuous, dynamically continuous, and discontinuous innovations. It then discusses factors that affect the spread of innovations, including the type of group, marketing efforts, compatibility, relative advantage and more. Finally, it outlines the categories of adopters and discusses marketing strategies for different adoption stages.

    Original Description:

    How innovation flows in the market

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    The document discusses the concept of diffusion of innovations, which is the process by which new products and services are adopted by consumers. It describes the diffusion and adoption process, in which consumer innovators are the first to purchase new products. The document also defines different types of innovations based on the amount of change required, such as continuous, dynamically continuous, and discontinuous innovations. It then discusses factors that affect the spread of innovations, including the type of group, marketing efforts, compatibility, relative advantage and more. Finally, it outlines the categories of adopters and discusses marketing strategies for different adoption stages.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    105 views15 pages

    Diffusion of Innovations

    Uploaded by

    ArnabBhattacharjee
    The document discusses the concept of diffusion of innovations, which is the process by which new products and services are adopted by consumers. It describes the diffusion and adoption process, in which consumer innovators are the first to purchase new products. The document also defines different types of innovations based on the amount of change required, such as continuous, dynamically continuous, and discontinuous innovations. It then discusses factors that affect the spread of innovations, including the type of group, marketing efforts, compatibility, relative advantage and more. Finally, it outlines the categories of adopters and discusses marketing strategies for different adoption stages.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    The Concept

    Acceptance of new products and services is


    a major issue for companies
    The framework of exploring consumers
    acceptance of new products is known as
    diffusion of innovations
    Diffusion process is the manner in which
    innovations spread throughout a market
    The market size can vary depending upon
    the product e.g. Launch of a new soft drink
    or a new automated snack outlet

    The Concept
    The Diffusion and Adoption Process are
    closely related
    Adoption is the micro process for an
    individual consumer while deciding to
    buy or reject a new product
    Consumer innovators are those who are
    the first to purchase new products
    It is important for marketers to identify
    this group

    Innovation Product oriented


    Definition
    Continuous Innovation - Introduction of
    modified product rather than totally new
    product. Requires minor change in behaviour
    or changes in behaviour that are unimportant
    to the customer
    Dynamically Continuous Innovation - This
    requires a moderate change in an important
    behaviour or a major change in a behaviour of
    low or moderate importance to the individual
    e.g. Digital cameras, Digital video recorders ,
    diapers etc

    Innovation Product oriented


    Definition
    Discontinuous Innovation This
    requires major changes in behaviour
    of significant importance to the
    individual or group. New behaviour
    pattern are adopted.
    Examples are airplanes, radios, TV ,
    the Internet

    Firm oriented
    When the product is new to the
    company- Micromax smart TV

    Market oriented definition


    New if purchased by very small % of
    customers
    New if it has been inexistence for
    short period of time

    Stages in the adoption


    process
    Awareness

    Interest

    Evaluation

    Trial

    Adoption

    Factors Affecting the Spread of


    Innovation
    1. Type of Group
    2.Type of Decision
    3. Marketing Effort
    4. Fulfilment of felt need
    5. Compatibility
    6.Relative Advantage
    7. Complexity

    Factors Affecting the Spread of


    Innovation
    8.Observability
    9.Trialability
    10. Perceived Risk the probability that the
    innovation will not perform as desired, the
    consequences of its not performing as
    desired, the ability to reverse, and the cost
    of reversing, any negative consequences
    11. Culture shelf stable milk, resistance to
    innovations also vary from country to
    country

    Adopter Categories

    Innovators first 2.5 % to adopt


    Early Adopters next 13.5 %
    Early majority next 34 %
    Late majority next 34 %
    Laggards last 16 %

    Marketing Strategies
    Market Segmentation:
    Focus on individuals within the target
    market more likely to be innovators and
    early
    innovators.
    Marketing
    Communications should focus on the new
    technical features
    As innovation gains acceptance the focus of
    attention should shift to the other segments
    Diffusion Enhancement Strategies- Analyse
    from target markets perspective

    Receptive innovations- use


    traditional methods
    Resistant innovations i) if industry
    wide goal -> horizontal co-operation
    ii) if purely competitive advantage
    for company -> consider vertical
    cooperation

    Channels of communication - New


    media like podcast, social networking
    Social system- Orientation of social
    system i.e the segment likely to
    influence acceptance or rejections
    Time- purchase timings, adoption
    categories
    Rate of adoption also depends on
    penetration policy

    Profile of consumer
    innovator
    Defining the innovativeness of the
    innovator
    Interest in product category
    Personality traits dogmatism, inner
    directedness, OSL, variety seeking
    Perceived risk social, financial,
    physical, psychological, performance,
    network externality
    Domain specific Vs global innovators

    The Indian Context


    Value, Convenience and Cultural association
    are important
    Good Nights mosquito coils drive away
    insects
    Vatica hair oil with combination of lime and
    coconut ingredients
    Nokia mobile phone model had FM and torch
    useful in rural india
    Sachets brought a big change in Indian
    market e.g. shampoo

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