Diffusion Theory: - Adoption Process - Characteristics of Innovations - Adopter Categories
Diffusion Theory: - Adoption Process - Characteristics of Innovations - Adopter Categories
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 – Toyota’s
significant gain in
American market in 1980s
• Hyundai
• Samsung/Sony (computer
monitor market)
Global Buyers
• When the company’s
perceived value is high, it
can charge more than the
competition for the same
product.
• To succeed in a market the
product’s perceived value
should be equal to or more
than the competitors.