The Product Diffusion Curve

The Product Diffusion Curve is a useful model
that helps you think about who you should be targeting at different
stages of the life of your product or service.

With an understanding of the Product Diffusion Curve, you can target
your marketing efforts intelligently, getting the best returns from
your effort. More than this, you can maximize the chances of success
for your product, for example, by pinpointing the most influential
target clients right at the start of your marketing effort.
Understanding the Product Diffusion Curve
The Product Diffusion Curve model uses a bell-shaped curve or an
s-shaped curve to show the stages in which a successful product is
adopted by people within your market.
The curve is shown below:



People within the market are represented depending on how quickly
they accept and purchase new products. Some welcome novelty,
adopting new products as soon as they come to market. Others only
purchase new products only when it becomes the last resort.
According to the model, five different groups of people will
purchase your product at different stages of the product's life:

Innovators: Members of this group include in-the-know consumers who
are willing to take a risk on a new product. Innovators represent
the first 2.5% of people to adopt a new product.
Innovators either have a pressing need, or are wealthy enough not to
worry too much if the product doesn't work. They'll most likely be
knowledgeable and self-confident and (if they're to be influential)
may be people that others look up to.
Early Adopters: Members of this group gauge the response of the
Innovators before rushing in purchasing a new product. They'll
probably be educated and somewhat product savvy.
Early Adopters represent about 13.5% of the total consumer
population.
Early Majority: Members of this group are more cautious and prefer
to avoid the risk associated with purchasing an unproven product.
Generally, members of the Early Majority group accept a product only
after it has been approved by members of the Early Adopters group,
waiting for the recommendations or product endorsements from those
who have experience with the product. The Early Majority represents
34% of consumers.
Late Majority: Members of this group are more skeptical. They are
late to jump on board and do so only after a new product becomes
mainstream. The Late Majority represents about 34% of consumers.
Laggards: Members of this group are more than simply skeptical. In
fact, they generally do not accept a new product until more
traditional alternatives no longer are available. Laggards represent
about 16% of consumers.


Tip:
You'll need to approach different groups with different
marketing messages if you're to sell effectively to them. In
fact, your whole marketing approach (including pricing) may need
to change if you're going to get the next group to adopt your
product.


Using the Tool
To use the tool, think about where your product is in its lifecycle.
Is it new, and about to be introduced? Or is it well-established in
the market and understood by the majority of people?

Then think about the marketing message that you're using. Is it
appropriate to the group of people the Product Diffusion Curve tells
you you're likely to be selling to?

For example, if you're introducing a radically new product, you may
want to create a buzz among journalists and readers of specialist
magazines, promoting it as the latest piece of exciting, expensive,
hi-tech equipment. These are the Innovators that you need to win
over if you're then to sell to other groups.

However if you're using the same pitch to people in the Late
Majority, you'll probably scare off more people than you attract.
Late Majority buyers are more likely to welcome simplicity and
reliability rather than hi-tech gadgetry.

Key Points
Regardless of the perceived value of a new product, it is a
challenging process to "push" any new product into a competitive
marketplace, and even more challenging to persuade consumers to
purchase the product.
In helping you group people together as Innovators, Early Adopters,
Early Majority, Late Majority and Laggards, the Product Diffusion
Curve helps you think about the different marketing approaches
you'll need as your product increasingly penetrates the market.