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The consumer adoption process

Innovation Diffusion Process

The spread of new idea from its source of invention or creation to its ultimate users or adopters.

Awareness- The consumer becomes aware of the innovation but lacks information about it. Interest-The consumer is stimulated to seek information about innovation. Evaluation-The consumer considers whether to try innovation Trial-The consumer tries the innovation to improve his or her estimate of its value. Adoption-The consumer decides to make full and regular use of the innovation.

Factors Influencing the adoption process

Readiness to try new products and personal influence. Characteristic of the innovation Organisations readiness to adopt innovations

Readiness to try new products and personal influence.

InnovatorsThese are technology enthusiast; they are venturesome and enjoy tinkering with new products and mastering their intricacies. In return for low prices they are happy to conduct alpha and beta testing and report on early weaknesses.

Readiness to try new products and personal influence.

Early adopters They are opinion leaders who carefully search for new technologies that might give them dramatic competitive advantage. They are less price sensitive and willing to adopt the product if given personalised solutions and good service support.

Readiness to try new products and personal influence.

Early majority They are deliberate pragmatists who adopt the new technology when its benefit are proven and a lot of adoption has already taken place. They make up the main stream market.

Readiness to try new products and personal influence.

Late majority They are skeptical conservatives who are risk averse, technology shy , and price sensitive. Laggards They are tradition bound and resist the innovation until they find that the status quo is no longer defensible.

Characteristic of the innovation

Relative advantage- The degree to which it appears superior to existing products. Compatibility-The degree to which the innovation matches the values and experiences of individuals. Complexity- The degree to which the innovation is relatively difficult to understand or use. Divisibility-The degree to which innovation can be tried on a limited basis Communicability- The degree to which the financial results of use are observable and describable to others. Other factors are cost, risk and uncertainty, scientific credibility, and social approval.

Organisations readiness to adopt innovations

Organisations environment- Community progressiveness, community income. Organisation Size, profits, pressure to change. Administration- Education level, age,sophistication.

Why Launch a new Brand

A new brand may introduce a new market. A new brand may herald a dramatic improvement in a well defined product market. A new band may represent a completely new approach to a market. A new brand may engage an untapped consumer segment.

Why Launch a new Brand

A new brand may be launched as part of a rationalisation of an overall portfolio. A new brand may block a threat from competitors.

Essential Questions
Why does the world need this brand? Who are the competitors near and far? How does this brand differ from competitors? Who are the customers for this brand? Who are NOT customers for this brand? What exactly is the product/service this brand will offer? What is the know-how of this brand? What is this brand NOT? Are the companys processes aligned behind the brand? Can employees articulate the answer to question one?

Selecting Name for Brand

What is the product and/or service? Is it innovative new product, part of range,etc? Who is the customer? What are their specific needs and interests which this brand will satisfy? What is the brands position? How will a customer think of this brand , in relation to competitors? What is the long term vision of the brand? Does the brand hope to expand into other business areas?

Selecting Name for Brand

Descriptive names-Most straight forward type of brand name. Associative names-The name can be suggestive of the brand position. Appropriated names-Brand names can be plundered from anywhere. Invented names-These are made up words, empty of meaning , and brand communication must work harder to give them meaning.

What Next
Dont overlook the role of Publicity. Dont overlook the role of word of mouth. Identify opinion leaders. Develop a seeding campaign.