Paper Example on Marketing: Diffusion of Innovation Curve, Product Life Cycle, and Product Flux

Date:  2021-03-24 12:58:28
7 pages  (1805 words)
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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Q.1: The Diffusion of Innovation Curve

The diffusion of innovation curve refers to a curve which is used to explain why, how and the rate at which technology and ideas spread from one region to another. The curve is defined by the diffusion of innovation theory. The idea of the diffusion of innovation was coined by Professor Everett Rogers who was teaching the communication studies in the year 1962. Professor through his book "The diffusion of innovations" explains that diffusion of innovation refers to the condition in which the innovations is passed from one community to the other and to the participants who are found in a social system (Rogers 57). Rogers used the curve to demonstrate that a new idea is influenced by four elements. The items that he proposed are the innovation, the communication channels, the time and the social system. However, the innovation must be adopted through the use of human efforts for it to become self-sustainable in the society. The rate of innovation adoption however varies, and as it continues being selected, it reaches a critical mass. Furthermore, the adoption of the innovation also influences the decision-making process and the adopters themselves.

Furthermore, the diffusion of innovation curve has also been used to explain the rate at which people adopt a new product, idea, practice and also a particular philosophy. Rogers through the curve explained that as a new technology or idea gets into the market, few people adopt it, but as time goes by, it becomes widely spread and thus many people start to realize the value of that technology or idea. The diffusion of innovations curve explains that as the idea, product, practice diffuses in the society, it will be a point when it is considered a saturated point. Rogers through the "diffusion innovation" theory categorized the idea or the technology adopters as the early adopters who becomes the first ones to adopt a new idea. They are few and fear that the idea might not work as expected. Another category of the adopters is the early majority. It refers to the second classes of adopters who have become many at this point and ready to adopt and use the idea or technology. Furthermore, the late majority follow the early majority. The number is also big but the idea has already become old in the society and is becoming saturated (Rogers 73). The other adopters are the laggards and at this point, the adopters are reluctant to adopt the idea since it has become old and some defects associated with the idea have been noticed at this point. Thus, at this point, the rate at which people adopt the idea declines.

The company which has adopted the diffusion innovation curve is the Nokia Company. Nokia is a technology company that has become a global leader in the technology industry. Historically, the company has grown from being the finish roots, to the situation of bringing expertise and technological change in the technology industry. The innovation technologies developed by the firm improve the connectivity of the people from different parts of the world. The products from the company are consumed worldwide. It deals with the production of mobile phones, iPad, computers and other technology products. The market is sensitive since it encounters stiff competition from competitors such as the Samsung, Techno and other mobile producing companies. The customers of the Nokia products are thus sensitive as they can shift from purchasing Nokia products and purchase those from the competitors. Furthermore, the customers are technology based because they majorly consumed technology based products.

Nokia while introducing its smartphones faced stiff competition from the smartphones developed by Samsung Company. Initially, the introduction of the smartphones by the company received few customers because they had understood the features of the product and how to use them. However, as time went by, the customers purchasing the smartphones increased and thus the sales of the company regarding the smartphones increased. In the year 2003, the company recorded a higher percentage of the sales and as time went by, the sales decline because many customers had associated the products with high prices. They thus shifted to purchasing the products from such other companies as Techno and Samsung. Currently, the company records low sales from the Nokia smartphones.

Q2: Product Life Cycle

The product life cycle is a concept that explains the stages a product or service undergoes from the time it was introduced into the market until the time when it fades from the market. The concept is used in marketing to explain how the product gains customers at a particular market until the time the customers reduce or stop consuming that product. The concept explains that there are several stages that the product goes through in the market. The stages are the introduction. At this stage, the product goes through the researching, the development before it is finally launched. The second stage is the growth stage. At this stage of the product life cycle, the sales of the product are increasing at a faster rate as the customers first realize the product and its importance (Kotler 34). The next stage is the maturity stage. Even though the rate of product growth is slowing down, the rate at which the product is purchased is at its highest. The slow growth of the product at this stage might be attributed to the competition or the product saturation rate. The final stage of the product lifecycle is the decline stage. It is at this stage that the company realizes sales decline.

Techno Company is a company that deals with the production and sale of mobile phones and other technology products such as accessories. When the company came into the technology market, other companies such as Nokia and Samsung were already established in the market. Therefore, the company had to use other marketing strategies such as lowering the prices of its products to gain customers and beat the competition in the technology industry. The customers consuming Techno products are found all over the world. Many of the customers associate Techno products with the lower prices. When Techno introduced its tablets into the market, many people were going for it. It is reported by the company that in the year 2010, it was selling many tablets because they were still new in the market and many companies had not started producing them. For example, customers had the perception that Techno Twit Solutions would solve the communication-based problems for them but with time, other companies such as Samsung developed slim iPads and tablets and thus overdo the Techno tablets in the company. Even though the company is still making some sales of its tablets, it is recording low sales than before. Because Techno Company has understood the trend of the product life cycle and that majority of the technology based products have short life cycle because of the introduction of new products into the market, it has to intensify the marketing of the products at their stages. The impact is thus seen when the company records high sales during the early stages of product development, growth, and introduction into the market.

Q3: Brand Flux Model

Through the brand flux model, the company is in the position to place its products in a unique position which allows it to gain more customers. The model enables the organization not to rest but keep on fighting to keep the product brands to reflect the true product characteristics. The company introduces the design and take care of the product until it beats its competitors in the market. Furthermore, the model allows the company to build simple, bold visuals for the translation of the powerful communication messages for the differentiation of the brand to make it move faster in the market.

The company that has adopted the refocusing strategy is the PepsiCo. In the year 2014, the chief executive officer, Indra Nooyi of the PepsiCo explained that the company was shifting from engaging in carbonated drinks alone and shifting its focus to other products such as the non-carbonated drinks and the snacks which it believed were healthy compared to the previously produced drinks. The refocusing strategy was significant to the company because it allowed it take into consideration the healthy concerned customers. Before, the introduction of refocusing strategy, PepsiCo was producing carbonated drinks which were facing stiff competition from Coca-Cola Company. After the introduction of snacks and non-carbonated drinks, the sales of the firm shoot up. Many customers were shifting to use the products from PepsiCo because it took care of their health status. The Brand Flux Model relates to the refocusing in that both increases the number of customers consuming the products of the organization. The decision of refocusing is significant when the company aspires to increase its sales.

Q4. Relationship between the Diffusion of Innovation Curve, Product life cycle, and Product Flux

When the product or idea is introduced into the market, it diffuses from one region to another. Diffusion allows the product to be consumed by various customers in different parts of the world. As the new product gets into the market, customers get to use it, and as time goes by, many customers will shift towards using that particular product. However, as competitors develop the same product, competition becomes stiff and thus the sales decline. The product life cycle can be adopted while introducing the product into the market but because the lifespan of the product is short, brand flux model can be adopted to ensure that the product lifespan increases and the customers continue to purchase it (Amstrong & Kotler 56). Thus, the diffusion of the innovation curve, the product life cycle, and the brand flux model are interrelated as far as marketing of the product is concerned. When they are adopted during commercialization of the products, the company will be in the position to gain more customers and thus increase its sales and enlarge its market share.

Q.5: Teams Market Plan.

The market plan is significant because it is used to increase the product sales of the company and thus increase the organization's profit. The total market size enables the firm to understand the number of potential customers, their buying characteristics and what expect from the company. Market segmentation is important because it provides the company with the opportunity to customize the uniqueness of marketing elements which include the product, place, price, and promotion (Amstrong & Kotler 89). The market has been segmented through geographic segmentation, demographic segmentation, psychographic and behavioral segmentation. The plans positioning involves adopting the refocusing strategies to ensure the product is unique and receives unique market as well. It will then enable the customers to get quality and durable products than those produced and supplied by the competitors.

Works Cited

Amstrong & Kotler. Marketing. Introduction. Pearson, 2012.

Kotler, Philip. Marketing Management. Prentice Hall, 2000.

Rogers, Everett M. Diffusion of Innovations. Free P, 2003.

 

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