Module 4 - Activity/Assessment

1. Describe the adoption and diffusion process for new products. Explain the
importance of buyer decision process in developing new market strategy.

To develop an efficient marketing plan, the marketer must understand the

consumer adoption process first. The adoption process is a series of decisions that a
person makes before accepting a new innovation.
There are five (5) stages in the Adoption process, these stages may happen before or
even after the actual adoption.

I. Awareness - When potential customers are aware of the product but don't have a
clear understanding of it.
II. Interest - When a product captures the attention of the customer and s/he wants
to learn more about it.
III. Evaluation - The consumer has sufficient understanding about the product at this
point, and s/he weighs its relative benefits and analyzes it in terms of numerous
aspects such as cost, aesthetics, rivals' offerings, and so on.
IV. Trial - This is the stage in which the customer interacts with the product and
determines whether or not the claims are true. Trials can be created through
sampling or by the user purchasing the product herself. Many new brands strive
to get to this point as quickly as feasible.
V. Adoption - This is the point at which the customer has decided whether to stick
with the product or return to her previous one.

The rate at which new ideas and technologies spread is explained by the
diffusion of innovation. Marketers frequently employ the diffusion of innovation
theory to determine the rate at which consumers are likely to accept a new product or
service.

In the diffusion of innovation theory, there are five adopter categories:

I. Innovators - Those who desire to be the first to try an innovation fall into this
category
II. Early Adopters - Those that are comfortable with change and new ideas make
up this group.
III. Early Majority - Those that adopt new ideas before the rest of the population.
However, proof that the innovation works is required before this category will
accept it.
IV. Late Majority - Those who are afraid of change and will only adopt a new
technology if it has been widely accepted and adopted by the most of the public.
V. Laggards - They are the last to adopt new technologies since they are quite
traditional and conservative. This is the most difficult group to impress.

The buyer decision process is essential in the development of new market

strategies because it identifies how customers complete the journey from learning
about a product to making a purchase decision. For marketing and sales,
understanding the buyer's buying process is important. The customer or buyer
decision process will help them to create a marketing strategy that persuades them to
acquire the product or service in order to solve their problem. Additionally, when a
company plans to develop its market strategy, it always considers its customers
because they are the ones who will buy the product. The company should see if the
customers will adopt the changes or developments.