How Does The Product Life Cycle Relate to Stages in The Diffusion of Innovation Model? Marketing

How Does The Product Life Cycle Relate to Stages in The Diffusion of Innovation Model? 

The product life cycle refers to the length of time a product is launched into the market until it's been removed. It is broken into introduction, growth, maturity, and decline stages called the four stages. It helps businesses with decision-making such as pricing or promotion to expansion. For instance, when an electric car like Tesla Model 3 is newly introduced into the market, demand increases, therefore increasing its popularity. Then, more and more competitors join the profitable market make it harder to increase its sale for companies who step into it earlier.

According to the Diffusion of Innovation Theory, developed by E.M. Rogers in 1962. It uses the five stages, Innovators, Early Adoptors, Early Majority, Late Majority, and Laggards to explain how, over time, an idea or product diffuses through a social system. People, as part of a social system, adopt a new idea, behavior, or product. For instance, recently, electric cars have become more and more adaptable by people. People must perceive the idea or products as new or innovative so that diffusion is possible. When Tesla planned to IPO and made more and more electric, most people thought Elon Musk was crazy. However, he is so successful today.

I would like to explain the model with five stages, awareness, interest, evaluation, trial, and adoption. And also, all use electric cars as examples. Awareness can be applied to all the five stages (Innovators, Early Adoptors, Early Majority, Late Majority, and Laggards) because they are aware of the new products or new ideas at different precedence. After they noticed, they probably get interested in it or not. So, here's the bifurcation point. Be an early adopter or a laggard depends on their choices. Then, people evaluate if the products really fit their needs. During the evaluation period, the early adopters and the majority will provide their experience of using the products. The late majority will now consider joining the game since they have seen the other people's successes. The third stage is trial. This is where most people are trying to accept new ideas after doing their homework. The final stage will be the adoption. Everyone now feels much freer to choose among new products since they already know the pros and cons. 

The Overlaps and Relationships

I think from the early adopters to the laggards, it represents some kind of growth already. The innovators are those who introduce the new ideas or products. The early and late adopters are also representing different levels of the majority. The laggards mean they are too late to jump on the ship, so it means the decline stage is coming soon.

Reference

Behavioral change models. (n.d.). Retrieved February 23, 2021, from https://sphweb.bumc.bu.edu/otlt/mph-modules/sb/behavioralchangetheories/behavioralchangetheories4.html

Chaffey, D., & Hanlon, A. (2019, October 25). What is the the diffusion of Innovation model? Retrieved February 24, 2021, from https://www.smartinsights.com/marketing-planning/marketing-models/diffusion-innovation-model/

Kopp, C. (2021, January 28). Understanding product life cycles. Retrieved February 23, 2021, from https://www.investopedia.com/terms/p/product-life-cycle.asp

Tanner, J. & Raymond, M.A. (2015). Principles of Marketing. University of Minnesota Open Textbook Library. Licensed under a Creative Commons by-nc-sa.