P&G tried to introduce a hair remover cream for men as a substitute for razors and shaving cream.

This formulation was similar to that used widely by women to remove hair from their legs.

The product failed because men were not interested in a product they perceived to be too feminine and
thus threatening to their masculine self-concepts.

The manufacturer failed to address which key factor for successful adoption of a product?

A) observability

B) relative advantage

C) compatibility

D) trialability

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Syllabus

▪ Concepts of Innovation in Businesses

▪ The innovation adoption of the life cycle

▪ Entrepreneurship and Start-ups

▪ The Entrepreneurial Development

▪ Stages of Starting a Venture

▪ Different Types of Start-ups

▪ Entrepreneurship & Government Policies

Do You (as an Innovator) ever wonder…

▪ How the market adopts a new product?

▪ Is there a process or a hierarchy of adoption?

▪ Who are your early and late adopters?

▪ Should you market your product differently to the early

adopters and late adopters?

These terms are really important for Innovators... And hence,

it is important for them to Understand the Innovation Adoption

Lifecycle
Innovation Adoption Lifecycle

▪ Knowledge of how an idea is adopted in the market and

how it spreads among the communication channels is

important to develop targeted marketing strategies for a

new product.

▪ Innovation spreads in a systematic way, and those who

understand it knows which route to take at every stage of

the innovation adoption life cycle.

Innovation Adoption Lifecycle

▪ Originated from a study on farmers behaviour, innovation

adoption lifecycle states how an idea diffuses/spreads

from the earliest adopters (innovators) to the laggards.

▪ It is a sociological model that describes the adoption of

innovation according to the demographic and psychological

characteristics of the target audience.

Innovation Adoption Lifecycle
▪ The concept was coined by Everett M
Rogers in his book Diffusion of
Innovations, where he classified
adopters into five categories:

o Innovators,

o Early adopters,

o Early majority,

o Late majority and

o Laggards.
Innovation Adoption Lifecycle

o Innovators,

o Early adopters,

o Early majority,

o Late majority and

o Laggards.
1. Innovators
▪ Innovators are your first customers (2.5%).
▪ They are the risk-takers who have big
pockets & high status in social network.
▪ These people love the possibilities of new
ideas.
▪ The product is usually expensive and not
perfect when presented to the innovators.
▪ But their risk tolerance and financial
resources allow them to adopt the new
technology that might fail and let them
absorb the losses.
1. Innovators
▪ Innovators are the influencers for both the
manufacturers and the other users
following them
▪ A business should focus on one-to-one
marketing when reaching out to
innovators. Personalized emails, product
listing, and meetings are a few techniques
used by marketers to market their new
innovation to the innovators.
2. Early Adopters
▪ Early adopters is the segment (13.5%) that
tries/uses/experiences the offering way
before most of the market try their hand
on it.
▪ They are the first ones to write reviews on
websites, post comments.
▪ Besides this, they are usually financially
stable, have a public figure
▪ The motivation can be anything from the
recommendation from innovators, building
social status, or just curiosity.
▪ Although their risk-taking abilities are not
as high as innovators they still seem to
leave their mark on the market.
The future of innovation depends on the early adopters as these users have good
influencing skills.

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3. Early Majority
▪ The early majority is the first sizeable
segment (34%) of the target market to
adopt the innovation.
▪ The people belonging to the early majority
are not the risk-takers but have an above-
average social status.
3. Early Majority
▪ The early majority is the first sizeable
segment (34%) of the target market to
adopt the innovation.
▪ The people belonging to the early majority
are not the risk-takers but have an above-
average social status.
▪ They only adopt the innovation after being
influenced by innovators and early
adopters whom they follow or know
personally.
▪ a variety of things and emotions motivate
them to try innovation. These include
social status, early adopters influence, love
for new (but trustable) experience, etc
4. Late Majority
▪ Late majority is the last sizeable segment
(34%) of the target market to adopt the
innovation.
▪ This segment is made up of risk-averse
adopters who only adopt the innovation
when it is validated and assimilated as a
part of daily life by a majority
▪ They are Not economically or Socially that
affluent or Slightly of higher age
5. Laggards
▪ Laggards is the final segment (16%) of the
target market to adopt the innovation.
▪ This segment is made up of seniors and
those with very low socio-economic status
who doesn’t like change and only accept
new things and experiences when forced
to.
▪ People belonging to this segment don’t
accept the innovation until all traditional
alternatives are no longer available.
Innovation Adoption Lifecycle

o Innovators,

o Early adopters,

o Early majority,

o Late majority and

o Laggards.
Innovation Adoption Lifecycle
Product Lifecycle
Q&A
Which of the following does NOT constitute an innovation?

A. A new variation on an existing product

B. A new way to phase out a product

C. A new way to package a product

D. A new way to deliver a product

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______________ refers to the process whereby a new product spreads through a population.

A. Diffusion of innovations

B. Product timeline

C. Product spread

D. Diffusion of adopters

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Diffusion
▪ diffusion is defined as “the process by
which an innovation is communicated
through certain channels over time among
the members of a social system”
▪ innovations that have these 5
characteristics – are likely to succeed over
innovations that do not.
▪ high relative advantage,
▪ trialability,
▪ observability, and
▪ compatibility, and
▪ low complexity-
A ______________ refers to the modification of an existing product.

A. dynamically continuous innovation

B. continuous innovation

C. dynamically discontinuous innovation

D. discontinuous innovation

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The introduction of the Internet, which has created widespread changes in the way we live, would be
considered a _____________..

A. discontinuous innovation

B. continuous innovation

C. Sustainable innovation

D. popular innovation

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The introduction of the Internet, which has created widespread changes in the way we live, would be
considered a _____________..

A. discontinuous innovation

B. continuous innovation

C. Sustainable innovation

D. popular innovation

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Relax…. Don’t get Confused!!

o ‘breakthrough’,

o ‘radical’,

o ‘discontinuous’,

o ‘disruptive’

Are almost same……..

The process by which individuals accept and use new propositions is referred to as:.

A. decision

B. adoption

C. acquisition

D. awareness

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In order to understand different elements and benefits, we refer to three different product levels. This
level consists of the physical good or delivered service that provides the expected benefit.

A) Core Product Level

B) Embodied Product Level

C) Augmented Product Level

D) Intangible Product Level

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____________ are products that consumers had not planned to buy but are persuaded at the very last
minute to pick up and put in their trolley or basket.

A. Staple products

B. Impulse products

C. Emergency products

D. Speciality products

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________ describes a stage in the new product development process, undertaken when a new product is
tested with a sample of customers or is launched in a specified geographical area to judge customers'
reactions prior to a national launch.

A. diffusion process

B. product lifecycle

C. adoption process

D. test marketing

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________ is a group of people in the process of diffusion who enjoy being at the leading edge of
innovation and buy into new products at an early stage:.

A. Late majority.

B. Early adopter.

C. Early majority.

D. Laggards.

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In _________ stage of the innovation-decision process of adoption, consumers become aware of the new
product. They have little information and have yet to develop any particular attitudes towards the
product.

A. Persuasion stage.

B. Knowledge stage.

C. Decision stage.

D. Implementation stage.

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At the highest end of innovation maturity, firms seek to integrate the services dimension as part of their
total offer. This is known as:

A. aftersales product support

B. a full line of services and products

C. aftersales services

D. servitization.

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Servitization

In its simplest terms, servitization refers to industries using their products to sell
“outcome as a service” rather than a one-off sale.

Netflix and Spotify are probably the most well-known example of this, delivering
media as a service, rather than customers buying the CDs, DVDs etc
The success rate of new products is consistently poor. No more than one in 10 new products succeeds.
The reasons for this high failure rate include:____________

A. the product's ability to meet the market need, although satisfactory, is not adequately communicated
to the target market.

B. there is no market for the product.

C. there is a market need but the product does not meet customer requirements.

D. All of the options given above.

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____________ are products that consumers had not planned to buy but are persuaded at the very last
minute to pick up and put in their trolley or basket.

A. product line

B. product item

C. product mix width

D. product mix

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The success rate of new products is consistently poor. No more than one in 10 new products succeeds.
The reasons for this high failure rate include:____________

A. the product's ability to meet the market need, although satisfactory, is not adequately communicated
to the target market.

B. there is no market for the product.

C. there is a market need but the product does not meet customer requirements.

D. All of the options given above.

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This is a group of closely related products. They are related through technical, marketing, or user
considerations, such as the three Galaxy S6 phones offered by Samsung.

A. Product line.

B. Product line depth.

C. Product mix.

D. Product item..

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______________ refers to the insertion of specific products and the use of brand names in movie and TV
scripts.

A. Product placement

B. Product focus

C. Product branding

D. Product advertising

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Which of the following is NOT a prerequisite for successful product adoption?

A. Trialability

B. Relatibility

C. Compatibility

D. Observability

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