Companies will use it when launching a new product or service, adapting it or introducing an existing product into a new market. Diffusion of innovation is the acceptance of a valuable new idea by a market. As we know the diffusion of innovation process passes through five different categories namely – innovators, Early adopters, early majority, late majority and finally laggards. Your email address will not be published. Rogers’ draws on Ryan and Gross’s work to deliver a 5 stage process for the diffusion of innovation. The Adoption theory is most useful when looking at new product launches, but it can be useful when taking existing products or services into a new market. Many more innovations never make it too far outside their close circle of developers. The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a ….. In his Diffusion of Innovations theory, sociologist Everett Rogers examines this in greater detail and focuses on at what rate a new product or idea spreads through a certain group. There are many innovations being developed every day around the world. Diffusion of Innovation theory by Everett Rogers is a classic management framework and help understand how innovation adoption spreads through an S curve. Diffusion of innovation is a process of communication that spreads an idea with marketing … So the laggards now purchase a Smartphone. People do not travel to new places unless they have heard good reviews about the same. However, if there is a good marketing pitch and some good reviews are on board, then the early majority adopts the product willingly. Even technology averse people use smartphones nowadays. Diffusion of innovation is a theory which explains how innovation is adopted by the population, in how much time does the innovation spread, and finally whether the innovation actually succeeds in bringing a change or it fails in the process. Early adopters regularly follow innovators to get information on what is the latest happenings around them. How fast will the diffusion of the innovation take place? DIFFUSION OF INNOVATIONS. For a company, these innovators are the audience whom they should keep happy and whose feedback matters. So if a new product is launched, a passionate gamer might be the first one to adopt. This model helps a business to understand how a buyer adopts and engages with new products or technologies over time. All innovation strategy examples start off with product innovation examples. So some colleges came up with the brilliant idea of launching online courses which were sold at a very low cost. The following are illustrative examples. Get started today using a tried and tested step-by-step process, Recommended Guide: Essential Marketing Models, Explore our Marketing Campaign Planning Toolkit, Digital Marketing Strategy and Planning Toolkit, Digital Experience Management (Desktop/mobile website), Latest Gartner Digital Technology Hype Cycle, Smart Insights (Marketing Intelligence) Ltd. Once the innovation has reached the laggards, it is hardly known as an innovation anymore. Like these examples, there are 5 total Adopter Categories of who help in the diffusion of innovation by Adopting the products. They probably adopt this innovative product because it is now the norm and not considered innovation anymore. Like these examples, there are 5 total Adopter Categories of who help in the diffusion of innovation by Adopting the products. Some make it to the national and international stage becoming a ubiquitous part of everyday life. 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