INDIVIDUAL ASSIGNMENT

COURSE: MARKETING

INTAKE: JANUARY 2019

SUBJECT: PRINCIPLE OF MARKETING

SUBJECT CODE: EIB 11303

SECTION: IF 10

LECTURER: NURUL NADIA BINTI ABDUL HALIM

NAME STUDENT ID
MAZHAR MUHAMMAD TAIMOOR 62214118521
QUESTION 1

Briefly explain the category of adopters and their characteristics.

Figure 1: Category of Adopters

ANSWER:

ADOPTER CATEGORIES

The five types of adopters include:

 Innovators
 Early Adopters
 Early Majority
 Late Majority
 Laggards
1. INNOVATORS (TECHNOLOGY ENTHUSIASTS)

Characteristic:

 Venturesome
 Interested new ideas

Explanation:

Of the five adopter categories, individuals in the innovators category represent only about
2.5% of users.

Innovators are technology enthusiasts that are willing to take risks on a new offering.
Generally, they have a high social status and are often considered mavens in their space or
industry.

Of the five adopter categories, Innovators have a high degree of financial liquidity to absorb
failures and a high-risk tolerance that allows them to adopt new technologies that may
ultimately fail.

They are connected socially to engineers and technology and they often interact with other
innovators.

Example:

People who are and will be thronging apple stores for Apple watch.

2. EARLY ADOPTERS (VISIONARIES)

Characteristic:

 Convey ideas of innovation to others

Explanation:

Of the five adopter categories, individuals in the early adopters category represent about
13.5% of users.

They are visionaries and opinion leaders in their space or industry.

Early adopters have a high degree of social status that allows them to influence others
based on their opinions. They are more likely to spread the word than innovators with their
followers. Early adopters are a bit more discerning in their adoption choices than innovators
as a way to help them maintain the central communication position they enjoy.

Example:

People in India who are now exploring e-commerce.

3. EARLY MAJORITY

Characteristic:

 Deliberate
 Adopt new innovation just before the average member of innovation

Explanation:

Of the five adopter categories, individuals in the early majority category represent about 34%
of users.

The early majority adopt an innovation long after innovators and early adopters. The early
majority are more focused is on solutions and convenience over of technology and
performance and therefore wait for the technology to mature.

While the early majority has above average social status and contact with early adopters,
they seldom are opinion leaders.

Example:

People using cloud services

4. LATE MAJORITY

Characteristic:

 Skeptical
 Adopt new ideas just after the average member of a system

Explanation:

Of the five adopter categories, individuals in the late majority represent about 34% of users.
The late majority adopt an innovation much later in a technologies maturity cycle.

Late majority individuals approach an innovation with a high degree of skepticism and adopt
the innovation only after the majority of society has already accepted it.
The late majority often has little financial liquidity so their risk tolerance is low and they are
not in a position to influence others.

Example:

People who have just started using debit/credit cards

5. LAGGARDS

Characteristic:

 Traditional
 Suspicious of innovation
 Last to adopt an in innovation
 Not opinion leader

Explanation:

Of the five adopter categories, individuals in the laggard’s category represent the final 16%
of users

Laggards are dead last to adopt an innovation. Laggards typically have an aversion to
change, tend to focus on “traditions,” and generally are only persuaded to adopt a
technology by close friends and family.

Example:

Those who are buying Apple iPhone 6(with respect iPhone, these people are laggards)

Adoption curve (Rogers E.M)

Briefly explain the stages in product life cycle. Select a Brand and give example of
products from the Brand for each Product Life Cycle Stages.

Figure 2: Product Life Cycle Stages

ANSWER:

Brand: Nike

Products: Shoes: Running, basketball, training, tennis, lifestyle, football, walking,

When new Nike air Jordan 4 “Bred” shoes are being released, there are a lot of television
advertisements, posters, billboards and more. They build up awareness to create a desire
and demand for the shoes that is at the highest just as the shoes are being released.

 Product branding and quality level is established and intellectual property protection
such as patents and trademarks are obtained.
 Pricing may be low penetration pricing to build market share rapidly, or high skim
pricing to recover development costs. The price now is 3000-3100 Rm.
 Distribution is selective until customer show acceptance of the product.
 Promotion is aimed at innovators and early adopters. Marketing communication
seeks to build product awareness and to educate potential consumer about the
product.

2. Growth

Nike off-white X air presto currently the best shoes in the market. At this stage sales start to
increase as the market has accepted this shoe. As more and more customers buy this shoe
the price increases. However, the customers are still willing to pay the price because of the
brand they are getting.
  Product quality is maintained and additional features and support services may be
added.
 Pricing is maintained as the firm enjoys increasing demand with little competition.
The price of this shoe is 3699-3799 Rm.
 Distribution channels are added as demand increase and customer accept the
product.
 Promotion is aimed at a broader audience.

3. Maturity

In the maturity stage sales reach their peak. The Nike 3 mercurial is still considered a good
shoes but the sale is not much as before because new shoes model is being released. The
shoes then begin to stay on shelves or in stock for long periods of time as the demand are
not as high as it was when they were first introduced.

 Product features may be enhanced to differentiate the product from that of

The Nike blazer low is old shoes and people does not consider buying this shoe. It was
released in 2011 and not as popular as before. As the shoe remain on the shelves they
become ‘old news’ because new shoes are now being released, removing all the hype from
this shoe and placing it on the newest shoe that is being released. At this stage the shoe has
reached its capacity. The price of this shoe is 150-199 Rm.

 Maintain the product- possibly rejuvenating it by adding new features and finding
new users.
 Harvest the product- reduce cost and continue to offer it, possibly to a loyal niche
segment.
 Discontinue the product- liquidating remaining inventory or selling it to another firm
that is willing to continue the product.