In his book “Diffusion of Innovations”, rural sociology professor Everett Rogers popularized the theory Diffusion of Innovation in 1962. It was a theory that seeks to explain how, why, and what rate new ideas and technologies spread through cultures. He said “diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system.
In this theory Rogers came up with a communication model which is hierarchical in nature as it assumes the hierarchy of effects called the AIETA model. According to Everett, this model is supposed to be followed to affect the consumer in order to make a purchase.
The AIETA model begins with awareness. Awareness is very essential to any advertising campaign or the life span of any product. For a product to achieve its long term goal of being sold or having an impact on a consumer, there has to an awareness campaign for it. This sort of campaign introduces the product to prospective consumers or continues to hammer the presence of an existing product.
For instance if Guinness Ghana comes up with a new product say Alvaro Lite, they have to embark on an awareness campaign in order to create some sort of consciousness among prospective consumers. This goes a long way in affecting the consumer to make a purchase which is the essence of the model
Second on the model is interest. Interest is key in order for the consumer to be persuaded. After the awareness has been created, the consumer’s interest in the product has to be whipped. This can be done with advertising models like information adverts and image adverts. Furthermore sales promotion, personal selling and publicity can be used.
Adverts which provide detailed information on the benefits a consumer stand to benefit from a product increase the interest in that particular product. Also associating the brand or product with certain personalities or certain images creates some sort of interest in a particular product which goes a long way in fulfilling the underlying motive of the AIETA model.
After the interest stage is evaluation in the model. This is the stage where consumers get to assess the product or service and weighs the advantages or disadvantages. This stage is very important in the purchasing decision. As a favourable evaluation or vice versa will go a long way in the eventual purchase of the product or service.
Advertising processes like persuasion adverts, image adverts as well as testimonials help the evaluation process. Also a publicity vehicle like consumer welfare reports as well as personal selling methods can be used in the evaluation stage in AIETA model.
The trial stage in the AIETA model is stage where a consumer goes ahead to purchase or patronize a product after he or she has gone through the awareness, interest and evaluation stages.
This stage is very vital in the model as whether a customer or consumer will go ahead to finally adopt the product rests here. Advertising, personal selling and sales promotions can be used in helping influence a consumer to frequently purchase the product in the trial period.
Finally Everett Rogers listed adoption as the last stage in the AIETA model which he developed in his book “Diffusion of Innovation” in 1962. The adoption stage is where a consumer or a customer after going through the process of being aware of a particular product or a service, gathers interest in it and then go ahead to evaluate the product. He or she moves on to try it and finally adopt it as a permanent brand or service.
In conclusion, there is a likelihood that a consumer will make a purchase or a product or service if this hierarchical model by Everett Rogers is followed.
Wednesday, September 26, 2012
Thursday, September 20, 2012
WHY SHOULD A COMPANY LIKE COCA COLA CONTINUE TO ADVERTISE?
In his book titled: Marketing Management and Administrative Action, Steuart Henderson Britt aptly said “Doing business without advertising is winking at a girl in the dark. You know what you are doing but nobody else does”. With this he meant advertising is essential for every company or organization irrespective of their size or market share.
Therefore in as much Coca Cola as a company have the presence and market share in the beverage industry in a lot of countries doesn’t stop it from continuous advertisements.
One of the important reasons why companies like Coca Cola or betterstill companies who are very popular needs to continue advertising is to create awareness. Awareness creation is very vital in achieving the long term goal of advertising which is to tell as many people as possible about a product, in the hope that they will buy it.
Also brands like Coca Cola which is a commodity can be easily be replaced by a competitor brand hence the need for its constant awareness creation.
Secondly persuasion is one the factors why a brand like Coca Cola still advertise.
It’s imperative for a company to continue to convince its consumers of the benefits they derive by patronizing its products regardless of its popularity or market share and Coca Cola is no exception. Lack of constant reminders about the importance or benefits of a product can lead to a switch to other similar products hence the need for persuasion which advertising does so well.
Competition is very keen in the current market dispensation. There are a lot of similar products on the market therefore for a company to maintain its market share or increase its consumer base it needs to compete. Interestingly switching between similar products is not that a difficult decision to take. For example decisions like a consumer switching from Apple to Samsung, Lenovo to HP or Coke to Pepsi is not that difficult.
As a result beverage giants like Coca Cola needs to advertise in other to fend off competition from similar products like Pepsi, AfriCola, and VirginCola etc. For instance as Pepsi, being Coca Cola’s major competitor, uses soccer stars like Lionel Messi, Didier Drogba and others for advertisements; it becomes vital on Coca Cola to constantly advertise to maintain its market share which goes a long way in increasing profits.
Furthermore companies like Coca Cola use advertisement to announce a change be it in a product or in a price. On many occasions that the Coca Cola Company have introduced other cola drinks under the Coke brand like the Diet Coke, Coke Lite, Coca-Cola Cherry and the others; they did it through advertising. Advertising is needed to trumpet the benefits of such new products.
Recently Coca Cola Ghana used advertising to announce its new price change on the market. Advertisements on television, radio and the print media were used to announce the change in the price of Coke from 80p to 1GHC.
It widely assumed that Coca Cola which was adjudged the world’s most valuable brand by Interband’s best global brands in 2011 is very popular. That’s truism. However not everyone is aware of the Coca Cola brand hence the need for continuous advertisements embedded with slogans like “Life begins here” and “Open happiness”.
In addition advertising is very important to a company when it wants to appeal to a new market which includes the Coca Coal Company. Advertising will be used to create the necessary awareness needed for the new market. Also advertisement can be used to spell out the benefits of the product to these new markets which can go a long way in triggering a purchase.
Finally a company like Coca Cola needs to continue advertising because it can help build brand equity. Though brands are not tangible in nature, its real value on paper cannot be underemphasized. Because a company’s value is calculated with its number of consumers or clients therefore in case of any takeover or merger, there will have been a consumer base which won’t be the case for start-up companies and those who lack brand presence. Thus advertising goes a long way in increasing the stock of a company.
As part of the marketing tool, advertising is very important in any organizational structure, with popularity or market share notwithstanding; therefore companies like Coca Cola need to continue and advertising in order to consolidate their market share and possibly expand it.
Therefore in as much Coca Cola as a company have the presence and market share in the beverage industry in a lot of countries doesn’t stop it from continuous advertisements.
One of the important reasons why companies like Coca Cola or betterstill companies who are very popular needs to continue advertising is to create awareness. Awareness creation is very vital in achieving the long term goal of advertising which is to tell as many people as possible about a product, in the hope that they will buy it.
Also brands like Coca Cola which is a commodity can be easily be replaced by a competitor brand hence the need for its constant awareness creation.
Secondly persuasion is one the factors why a brand like Coca Cola still advertise.
It’s imperative for a company to continue to convince its consumers of the benefits they derive by patronizing its products regardless of its popularity or market share and Coca Cola is no exception. Lack of constant reminders about the importance or benefits of a product can lead to a switch to other similar products hence the need for persuasion which advertising does so well.
Competition is very keen in the current market dispensation. There are a lot of similar products on the market therefore for a company to maintain its market share or increase its consumer base it needs to compete. Interestingly switching between similar products is not that a difficult decision to take. For example decisions like a consumer switching from Apple to Samsung, Lenovo to HP or Coke to Pepsi is not that difficult.
As a result beverage giants like Coca Cola needs to advertise in other to fend off competition from similar products like Pepsi, AfriCola, and VirginCola etc. For instance as Pepsi, being Coca Cola’s major competitor, uses soccer stars like Lionel Messi, Didier Drogba and others for advertisements; it becomes vital on Coca Cola to constantly advertise to maintain its market share which goes a long way in increasing profits.
Furthermore companies like Coca Cola use advertisement to announce a change be it in a product or in a price. On many occasions that the Coca Cola Company have introduced other cola drinks under the Coke brand like the Diet Coke, Coke Lite, Coca-Cola Cherry and the others; they did it through advertising. Advertising is needed to trumpet the benefits of such new products.
Recently Coca Cola Ghana used advertising to announce its new price change on the market. Advertisements on television, radio and the print media were used to announce the change in the price of Coke from 80p to 1GHC.
It widely assumed that Coca Cola which was adjudged the world’s most valuable brand by Interband’s best global brands in 2011 is very popular. That’s truism. However not everyone is aware of the Coca Cola brand hence the need for continuous advertisements embedded with slogans like “Life begins here” and “Open happiness”.
In addition advertising is very important to a company when it wants to appeal to a new market which includes the Coca Coal Company. Advertising will be used to create the necessary awareness needed for the new market. Also advertisement can be used to spell out the benefits of the product to these new markets which can go a long way in triggering a purchase.
Finally a company like Coca Cola needs to continue advertising because it can help build brand equity. Though brands are not tangible in nature, its real value on paper cannot be underemphasized. Because a company’s value is calculated with its number of consumers or clients therefore in case of any takeover or merger, there will have been a consumer base which won’t be the case for start-up companies and those who lack brand presence. Thus advertising goes a long way in increasing the stock of a company.
As part of the marketing tool, advertising is very important in any organizational structure, with popularity or market share notwithstanding; therefore companies like Coca Cola need to continue and advertising in order to consolidate their market share and possibly expand it.
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