Friday, 28 September 2012

QUESTION: Discuss the AIETA model presented by Everett Rogers in “Diffusion of innovation”.



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Diffusion of Innovations is a theory propounded by Everett Rogers in his 1962 book Diffusions of Innovations. The theory seeks to explain how innovations, ideas, behaviors or objects are perceived or accepted by a new audience or the population in general.

However “An innovation is an idea, practice, or project that is perceived as new by an individual or other unit of adoption” (Rogers, 2003, p. 12). An innovation may have been invented a long time ago, but if individuals perceive it as new, then it may still be an innovation for them. The newness characteristic of an adoption is more related to the three steps (knowledge, persuasion, and decision) of the innovation – decision process that will be discussed later.

Rogers anticipated that a population can be divided into five distinct segments based on inclination to adopt a specific innovation namely; innovators, early adopters, early majority, late majority and laggards.

He added that there are four factors that influence adoption of an innovation. These include a) the innovation itself, b) the communication channels used to spread information about the innovation, c) time, and d) the nature of the society to whom it is introduced (Rogers, 1995).

Rogers (2003) described the innovation-decision process as “an information-seeking and information – processing activity, where an individual is motivated to reduce uncertainty about the advantages and disadvantages of an innovation. Rogers further proposed that consumers followed a hierarchical process of Awareness, Interest, Evaluation, Trial and Adoption (AIETA) in the adoption of innovations.

The Innovation-diffusion process starts with Awareness; an individual learns about the existence of a product and seeks information about the product. “What?” “how?,” and “why?” are the critical questions in the awareness phase(Rogers, 2003 p21). During this phase, the individual attempts to determine “what the innovation is and how and why it works.

The next stage in the Innovation – diffusion process is the Interest stage; the individual shapes his or her attitude after he or she knows about the product, so the persuasion stage follows the knowledge stage in the innovation-decision process. He becomes more interested, seeks information and begins to gather details about the product.eg.

The individual shapes his or her attitude after he or she knows about the product, so the Evaluation stage follows the Interest stage in the innovation – decision process. The individual imagines him – or herself using the product. At this point, the prospect asks the question, “Can I do it? Can I see myself as the owner of this product?” At the evaluation stage individuals are able to form their impressions about the product.

At the Trial stage, an innovation is put into practice. The prospect experiments with the product on a small scale in an effort to become intimate with it and learn how to use it to his or her best advantage.

Finally, is the Adoption Stage the prospect begins large – scale use, which hopefully leads to preference, satisfaction, and repeat purchases.


Criticisms of AEITA Model

Various authors have been critical of the models put forward to explain the process of advertising. All of the hierarchy models (which include the AEITA model) presume that those exposed to advertising respond to those messages in an ordered and sequential manner.

Weilbacher (2001) notes that the models are concerned with advertising but in the vast majority of scenarios, sales are as a result of a combination of marketing factors. Additionally the models are overly simplistic in their portrayal of human behavior and response. Such models are based on the now discredited theories of "behaviorist formulation' hierarchy models which make an assumption that all advertising works in the same way.

REFERENCES


Rogers, E.M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.

Weilbacher (2001). Point of View: Does Advertising Cause a "Hierarchy of Effects"? The University of Manchester

Friday, 21 September 2012

WHY SHOULD A COMPANY LIKE COCA-COLA CONTINUE TO ADVERTISE?



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  The America Marketing Association defines advertising “as any paid form of non-personal presentation and promotion of ideas, goods and services through the mass media by an identifiable sponsor”.

 However the definition suggests that advertising acts as a marketing vehicle and is useful for drawing the attention of customers and prospective customers towards a specific product, service and manufacturer.

 Coca cola Company which was founded in 1892 would continue to advertise its products in order to increase awareness of its products to the public. There was the need for a company like Coca cola to keep informing its customers about the existing products, hence the need for an advert.

Another reasons why coca cola should continue to advertise its products is to introduction a new products since advertising facilitates the introduction of new products. Due to advertising, information about new products is given to the customers which help creates demand and the manufacturer is able to sell new products along with the existing ones.
 
For instance according to the Ghana Broadcasting Corporation news ,The Coca- Cola Bottling Company of Ghana Limited, has introduced a new product “Schweppes Malt" on the Ghanaian Market. The new "Schweppes malt" is a non-alcoholic refreshing malt drink enriched with Vitamins B1, B2 and B3. The new product is made from natural ingredients and offers energy and vitality and comes in a stylish and attractive glass bottle with distinct and highly quality labeling.

The "Schweppes Malt" which has low sugar content was produced under the high quality of international standards of the Coca-Cola Company to meet the high taste standard of Ghanaian consumers.

  Coca cola would to continue to advertise in order to creates new demand. Advertising the products of Coca cola spreads information and encourages consumers to purchase new products. Such advertising leads to the creation of new demand. Various concessions are offered to consumers in the initial period to give positive response from the consumers. Thus, advertising creates new demand from non-users.

     Coca cola would also continue to advertise its products to educate customers. Sometimes coca cola products are designed to introduce new models, label and styles which serve as a way of educating its prospective and existing customers about the new changes. According to Ralp D.Wray his Book titled “Advertising Services” said advertising may inform the public of the new product, its location and its importance by educating the customers. This is because consumers must often be educated in the use of a new product before purchasing is done.

The reason why coca cola continues to advertise is to facilitate effective personal selling because advertising creates proper background for personal selling. Advertising coca cola products gives advance information to the customers and points out the hidden selling points about the products. For instance advertisement of coca cola products shows features such as ‘non alcohol’ and ‘refreshing drink’ which stimulates the customers demand leading to effective sales.  

A company like coca cola would continue to advertise its products not only for improve sales but more importantly builds the company brand image. Coca cola would introduce branding for making their products popular with distinct personality. The brands are made popular through advertising. As a result, consumers develop loyalty towards the brand. 

Coca cola would continue to do advert in order to persuade prospective customers. A manufacturing company like Coca cola can face market competition effectively and can make his products popular through advertising. He can remove misunderstanding among consumers about his products through appropriate advertising with effective information.

Sales promotion is also the reasons for a company like coca cola to continue to advertise its products through the media: Coca cola normally makes its sales promotion campaign successful by using advertising. It can prepare proper background for the success of such campaign as advertising facilitates direct communication with consumers.

Building goodwill for coca cola would urge management to continue to advertise its products. Coca cola builds up goodwill and good image in the business world and also among the consumers through advertising. This is done through social responsibility programmes and community service activities such as coca cola sponsored programmes like Olympic Games and FIFA World cup.

Coca cola would advertise its products to raise living standards of customers: Advertising raises the standard of living of people by supplying information about goods and services which can offer convenience and pleasure to them. A coca cola product guides consumers in the selection of most suitable goods like coke and Pepsi drink.

Also coca cola products are advertised to remove misunderstanding: Advertising helps consumers in removing their misunderstanding about certain products. They change their attitudes towards certain products and services due to advertising.

REFERENCES
Advertising Services, Second Edition by Ralph D.Wray.

Kalyan-city.Blogspot.com/5Ms of Advertising Management features and benefits.

Ghana Broadcasting Corporation headline ‘Coca cola Ghana introduces “Schweppes Malt”.