Marketing Planning Theories and Models

Diffusion
“Is the adoption of new products or services over time by consumers within social systems, as encouraged by marketing. Diffusion refers to the cumulative percentage of potential adopters of a new product or service over time” (McDonald, 1999:176)

Diffusion
Diffusion as a function of the product newness
Continuous innovation, e.g. new miracle ingredient
Dynamic continuous innovation, e.g. disposable lighter
Discontinuous, e.g. microwave
Adoption
Early adopters - status, opinion leaders, respectable
Early majority - more conservative, more deliberate
Late majority - sceptical, below average status
Laggards - low status, income

Conclusion
All models have strengths and weaknesses
Models do not provide all the answers to planning problems
Models do however assist a Marketing Planning assess the current situation and provides insight into the future – BUT be careful how you interpret the models
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