The slides tells about the diffusion of innovation in marketing.The stages of innovation along with plc. How the innovation of product impact the consumer awareness about the product and what are the strategies the companies should adopt to spread the awareness about the product.Stages in adopters

1. What is diffusion?
Diffusion is the process by which a
new idea or new product is accepted
by the market. The rate of diffusion is
the speed that the new idea spreads
from one consumer to the next.

2. Innovation
 Innovation can be viewed as the application of better solutions
that meet new requirements, in articulated needs, or existing
market need’s. This is accomplished through more
effective products, processes, services, technologies,
or ideas that are readily available to markets, governments
 The process of translating an idea or invention into a
good or service that creates value or for
which customers will pay.

3. Diffusion Of Innovation
The concept of diffusion of innovation refers to the
spreading of consumption of an innovation,
through communication channels in a social
system.
An innovation is a product, service, idea, process,
behavior, or any other object which is considered
new by consumers.
Innovations require acceptance from consumers to
be successful, but they also require them to
change their existing behavioral pattern and
habits.

4. Theory Of Diffusion Of Innovations
 Diffusion is the process by which an innovation is
communicated through certain channels over time
among the members of a social system. Diffusion is a
special type of communication concerned with the
spread of messages that are perceived as new ideas. An
innovation, simply put, is “an idea perceived as new by
the individual.” An innovation is an idea, practice, or
object that is perceived as new by an individual or
other unit of adoption. The characteristics of an
innovation, as perceived by the members of a social
system, determine its rate of adoption.

6. Stages in adopters
 Innovators: Innovators comprise 2.5 percent of the
target market(s) adopters; they are those consumers’
who are the first to go and purchase a new product or
service offering. They purchase the new product and
service offering not because they possess a need, but
because they desire new ideas and concepts, and seek
product and service innovations.

7.  Early adopters: The next 13.5 percent of the target
market(s) adopters are called early adopters. These are
those consumers’ who purchase the new product and
service offering not because they are fascinated
towards the “new”, but because they possess a need.
 Early majority: The early majority is similar to the early
adopter in the sense that they buy the product/service
offering because they possess a need and want to fulfill
it; however, they are not as quick as the early adopters
and take longer to enter into purchase.

8.  Late majority: The next 34 percent of the adopters are
referred to as the late majority. They are referred to as
“late,” because i) members of their social class, reference
group and peer group have already made the purchase; and
the social influence is strong, and .They themselves have
evaluated the new product and or service and are ready to
buy it.
 Laggards: The laggards are the last to adopt a new product
or service offering, and as such make up the last 16 percent
of the target market. They are slow in buying the
innovative offering because.They are uninvolved with the
product and service they do not possess much
information.They remain uninfluenced by social pressure,
and social ties are not very strong.They believe in making
routine purchases and prefer to buy the “familiar”, than
the“unfamiliar”.

9. Elements OF Diffusion OF Innovations
Innovtaions
Comm
Chnnaels
Time
Social
System

10.  Innovations-An innovation, simply put, is “an idea perceived as new
by the individual.”
 Commun Channels-Communication is the process by which
participants create and share information with one another in order to
reach a mutual understanding. A communication channel is the
means by which messages get from one individual to another
 Time- The rate at which an innovations is adopted by the
society
 Social Circle-The fourth main element in the diffusion of
new ideas is the social system. A social system is defined
as a set of interrelated units that are engaged in joint
problem-solving to accomplish a common goal. The
members or units of a social system may be individuals,
informal groups, organizations, and/or subsystems

11. Types OF Innovtions
Firm
Oriented
Product
Oriented
Market
Oriented
Consumer
Oriented

12.  Firm Oriented-a product or service offering is
regarded as “new,” if the company starts
manufacturing or marketing it for the first time.
 Product Oriented-A product and service offering is
regarded as an “innovation”.If the product changes in
terms of form, attributes, features, and overall benefits
 Market Oriented-The market-oriented approach views
“innovation” purely from a marketers’ perspective, in
the sense that a product is regarded as “new”,
depending on how much exposure the consumers’
have about the new product or service offering, and
the total sales penetration that has occurred in the
specified short period of time.

13.  Consumer Oriented-The consumer-oriented approach
to defining “innovation”, is a favored approach over
others, especially in consumer behavior research, and
more specifically in research related to diffusion of
innovation, and adoption; the reason is that the
concept of “newness”

14. Stages In Innovation

15.  Knowledge-The individual is first exposed to an
innovation, but lacks information about the innovation.
During this stage the individual has not yet been inspired
to find out more information about the innovation.
 Persuasion-The individual is interested in the innovation
and actively seeks related information/details.
 Decision-The individual takes the concept of the change
and weighs the advantages/disadvantages of using the
innovation and decides whether to adopt or reject the
innovation. Due to the individualistic nature of this stage,
Rogers notes that it is the most difficult stage on which to
acquire empirical evidence

16.  Implementation-The individual employs the
innovation to a varying degree depending on the
situation. During this stage the individual also
determines the usefulness of the innovation and may
search for further information about it.
 Confirmation-The individual finalizes his/her decision
to continue using the innovation. This stage is both
and interpersonal, confirmation intrapersonal may
cause the group has made the right decision.