DIFFUSION OF

INNOVATION

Diffusion of Innovation
It is the process by which
acceptance of an innovation (new
products or new service or new idea)
is spread by communication (mass
media,
sales
people,
informal
conversation) to members of the
target market over a period of time.

Elements Of Diffusion Process

Innovation
Channels of communication
Social system
Time

Innovation
Allen & Hamilton identified six categories of new
product in terms of their newness to the company
and to the market place. They are:

New to the World

New product lines
Additions to the existing product lines
Improvements or revision to existing products
Repositioning
Cost Reductions

Channels of Communication
Two types of communication:
Communication between marketers &
consumers
Communication among consumers

Consumer information source

categories

Commercial sources Sales people, advertising, sales

promotion techniques.
Personal sources Family, friends, neighbours,
acquaintances.
Experimental sources Demonstrations, handling
samples.
Public sources Mass media, Consumer rating
organizations

Social system

Time
Time is the important factor for
estimating the rate of diffusion.
Early
Late
Average

Consumers Adoption Process

Consumers Adoption Process

Awareness - the individual is exposed to the innovation
but lacks complete information about it
Interest - the individual becomes interested in the new
idea and seeks additional information about it
Evaluation - individual mentally applies the innovation to
his present and anticipated future situation, and then
decides whether or not to try it
Trial - the individual makes full use of the innovation
Adoption - the individual decides to continue the full use
of the innovation

Adopter Categories

Innovators
Early Adopters
Early Majority
Late Majority
Laggards