Diffusion Theory

Rogers Diffusion of innovations

Adoption process Characteristics of Innovations Adopter categories

The Adoption Process

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

Rate of Adoption can be explained by these characteristics

Relative Advantage Compatibility Complexity Divisibility Communicability

Adopter Categories
Classification of individuals in a market on the basis of their innovativeness. Adoption as a result of human interaction in a social system. Persuading innovators is crucial for marketing purpose.

 Adoptions proceed more quickly in markets where innovations were introduced late. Difference in Asian adopter behavior and Western behavior few Asian innovators why?? Faster rates of diffusion found in Asia compared with the US Why???

Adopter Categories

Marketing in transitional economies and less developed countries.

Shortage of goods and services. Marketing needed and much desired by consumers.

Marketing in transitional economies and less developed countries.

Low per capita income High inflation Wide income distribution gap High levels of taxation, import duties,, and other bureaucratic hurdles. Lack of marketing awareness Fragmented communications and distribution channels Inadequate distribution and logistics infrastructure.

Marketing in transitional economies and less developed countries.

Suggestions to enter an LDC Look beyond per capita income Consider LDCs collectively Cost/benefit analysis of being the firt one to enter Set realistic deadlines.

Marketing in transitional economies and less developed countries.

Role of marketing Creating and delivering products that best serve the needs of the people Design products according to needs and income Appropriate marketing communications

Global Buyers
Customer value How to increase value? Example Toyotas significant gain in American market in 1980s Hyundai Samsung/Sony (computer monitor market)

Global Buyers
When the companys perceived value is high, it can charge more than the competition for the same product. To succeed in a market the products perceived value should be equal to or more than the competitors.