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  • 1. Diffusion of Innovation Prasad Dalvi (04) Kamal Rajpurohit (15) Manas Prabhudesai (20) Siddhesh Parab (45)
  • 2. Diffusion of Innovation Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system 10-11-2014 Diffusion Of Innovation 2
  • 3. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 3
  • 4. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 4
  • 5. COMPLEXITY COMPATIBILITY OBSERVABILITY TRIALIBILITY INFRASTRUCTURE COMMUNICATION CHANNELS NORMS/ROLES/SOCIAL NETWORKS PACE OF INNOVATION/ REINVENTION RELATIVE ADVANTAGE OPINION LEADERS 10-11-2014 Diffusion Of Innovation 5
  • 6. COMPLEXITY COMPATIBILITY OBSERVABILITY TRIALIBILITY INFRASTRUCTURE COMMUNICATION CHANNELS NORMS/ROLES/SOCIAL NETWORKS PACE OF INNOVATION/ REINVENTION RELATIVE ADVANTAGE OPINION LEADERS 10-11-2014 Diffusion Of Innovation 6
  • 7. Relative advantage Degree to which an innovation is perceived as being better than the idea it supersedes Factors Economic Factors and Rate of Adoption Status aspects of innovation Effects of Incentives Adopter vs diffuser Individual versus system Positive versus negative Cholecystectomy vs. laparascopic Monetary vs nonmonetary cholecystectomy 10-11-2014 Diffusion Of Innovation 7
  • 8. Trialability Degree to which an innovation may be experimented with on a limited basis Distribution of samples by pharma companies Professional association conferences and trade shows 10-11-2014 Diffusion Of Innovation 8
  • 9. Observability Degree to which the results of an innovation are visible to others Clinical Trial data to doctors Post marketing surveillance data Youtube reviews for technological innovations 10-11-2014 Diffusion Of Innovation 9
  • 10. Compatibility Degree to which an innovation is perceived as consistent with the existing values, past experiences, and needs of potential adopters • Compatibility with values and beliefs – Eg.Miracle rice crop • Compatibility with previously introduced ideas • Compatibility with needs CT scan – X ray Thyronorm - Eltroxin 10-11-2014 Diffusion Of Innovation 10
  • 11. Complexity Degree to which an innovation is perceived as relatively difficult to understand and use • The complexity of an innovation, as perceived by members of a social system, is negatively related to its rate of adoption Command prompt to Windows Windows 7 to Windows 8 Insulin injections to Insulin pen 10-11-2014 Diffusion Of Innovation 11
  • 12. Over adoption Over adoption is the adoption of an innovation by an individual when experts feel that he or she should reject 10-11-2014 Diffusion Of Innovation 12
  • 13. Naming of innovation In rural areas condoms had a very negative perception as a contraceptive method The word "Nirodh" was carefully chosen in India in 1970 as the most appropriate term for condoms A U.S based major soap company introduced its trademark product named CUE in French speaking nations, where the word has an obscene connotation 10-11-2014 Diffusion Of Innovation 13
  • 14. Positioning an innovation Positioning research can help to identify an ideal niche for an innovation to fill relative to existing ideas in the same field 10-11-2014 Diffusion Of Innovation 14
  • 15. Positioning an innovation Positioning research can help to identify an ideal niche for an innovation to fill relative to existing ideas in the same field 10-11-2014 Diffusion Of Innovation 15
  • 16. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 16
  • 17. ADOPTERS Not all individuals in a social system adopt an innovation at the same time. Rather, they adopt in a time sequence, and they may be classified into adopter categories on the basis of when they first begin using a new idea INNOVATORS ADOPTER CATEGORIES EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS 10-11-2014 Diffusion Of Innovation 17
  • 18. INNOVATORS (venturesome) First to adopt & display that they likely to want to be ahead They are often not taken seriously by their peers To be the first to own new products, well before the average consumer They often buy products that do not make it through the early stages of the Product Life Cycle (PLC). 10-11-2014 Diffusion Of Innovation 18
  • 19. EARLY ADOPTERS(respectable) Are also quick to buy new products and services So are key opinion leaders (KOLs) with their neighbors and friends as they tend to be amongst the first to get hold of items or services. 10-11-2014 Diffusion Of Innovation 19
  • 20. EARLY MAJORITY(deliberate) Look to the innovators and early majority to see if a new product or idea works and begins to stand the test of time They stand back and watch the experiences of others Then there is a surge of mass purchases 10-11-2014 Diffusion Of Innovation 20
  • 21. LATE MAJORITY(Skeptical) Tends to purchase the product later than the average person. They are slower to catch on to the popularity of new products, services, ideas, or solutions There is still mass consumption, but it begins to end. 10-11-2014 Diffusion Of Innovation 21
  • 22. LAGGARDS(traditional) These tend to very late to take on board new products and include those that never actually adopt at all Here there is little to be made from these consumers 10-11-2014 Diffusion Of Innovation 22
  • 23. INNOVATORS EARLY MAJORITY LATE MAJORITY LAGGARDS EARLY 2.5% ADOPTERS 13.5% 34% 34% 16% Bell shaped Diffusion Curve 10-11-2014 Diffusion Of Innovation 23
  • 24. Diffusion effect Cumulative degree of increasing influence upon an individual to adopt or reject an innovation resulting from activation of peer networks about the innovation in the social system 100% Percentage of adopters 0% Time Cumulative No. of adopters New adopters Diffusion starts to take off 10-11-2014 Diffusion Of Innovation 24
  • 25. Sales INTRODUCTION GROWTH MATURITY DECLINE Product life cycle Time Diffusion curve Product life cycle Vs. Diffusion curve 10-11-2014 Diffusion Of Innovation 25
  • 26. Cancian Dip Dr. Cancian also makes quite a point of the necessity to measure local socioeconomic status rather than societal stratification; i.e socioeconomic status is measured as an individual's status relative to other members of his or her social system, not in comparison to everyone else in the nation 10-11-2014 Diffusion Of Innovation 26
  • 27. Low class Low middle class High middle class High class Degree of innovativeness Linear relationship Social economic status Of adopters High Low Cancian Dip Cancian Dip 10-11-2014 Diffusion Of Innovation 27
  • 28. CHARACTERISTICS OF ADOPTERS SOCIO-ECONOMIC STATUS PERSONALITY VARIABLES COMMUNICATION BEHAVIOUR 10-11-2014 Diffusion Of Innovation 28
  • 29. SOCIO-ECONOMIC STATUS Earlier adopters have more years of education than later adopters have. Earlier adopters have more specialized operations than later adopters. Earlier adopters are more likely to be literate than are later adopters. Earlier adopters have higher social status than later adopters. Earlier adopters have a greater degree of upward social mobility than later adopters Earlier adopters have larger-sized units than later adopters Earlier adopters are more likely to have a commercial (rather than a subsistence) economic orientation than are later adopters. Earlier adopters have a more favorable attitude toward credit (borrowing money) than later adopters 10-11-2014 Diffusion Of Innovation 29
  • 30. PERSONALITY VARIABLES Earlier adopters have a more favourable attitude toward science than later adopters Earlier adopters may be less dogmatic than later adopters. Earlier adopters are less fatalistic than Earlier adopters have a greater ability to deal with abstractions than later Earlier adopters have a more favorable attitude toward education than later adopters Earlier adopters have greater rationality than later adopters Earlier adopters are more able to cope with uncertainty and risk than later adopters Earlier adopters have a more favourable attitude toward change than later adopters Earlier adopters have greater empathy than later adopters. Earlier adopters have greater intelligence than later adopters adopters. later adopters. Earlier adopters have higher levels of achievement motivation than later adopters. Earlier adopters have higher aspirations than later adopters. 10-11-2014 Diffusion Of Innovation 30
  • 31. COMMUNICATION BEHAVIOUR Earlier adopters have more social participation than later adopters. Earlier adopters are more cosmopolite than Earlier adopters have more change agent contact than later adopters Earlier adopters have greater exposure to mass media communication channels than later adopters. Earlier adopters are more highly interconnected in the social system than later adopters Earlier adopters are more likely to belong to highly interconnected systems than are later adopters Earlier adopters seek information about innovations more actively than later adopters Earlier adopters have a higher degree of opinion leadership than later adopters Earlier adopters have greater exposure to interpersonal communication channels than later adopters later adopters. Earlier adopters have greater knowledge of innovations than later adopters. 10-11-2014 Diffusion Of Innovation 31
  • 32. OPINION LEADERSHIP & DIFFUSION NETWORKS ‘ Every heard of wild cattle has its leaders, its influential heads ‘ - Gabriel Tarde (1903), The Laws of Imitation 10-11-2014 Diffusion Of Innovation 32
  • 33. Opinion Leadership The degree to which an individual is able to informally influence other individuals' attitudes or overt behaviour in desired way with relative frequency External communication Characteristics of opinion leader Accessibility Socio-economic Status Innovativeness “Invention can start from the lowest ranks of the people, but its extension depends upon the existence of some lofty social elevation” -Tarde(1903) 10-11-2014 Diffusion Of Innovation 33
  • 34. Diffusion network These subjective evaluations of an innovation mainly flow through interpersonal networks. For this reason, we must understand the nature of networks if we are to comprehend the diffusion of innovations fully Communication proximity Degree to which two individuals in a network have personal communication networks that overlap By Granovette (1973) 10-11-2014 Diffusion Of Innovation 34
  • 35. A B Low communication proximity C D High communication proximity 10-11-2014 Diffusion Of Innovation 35
  • 36. Communication flow Model of mass communication flow Hypodermic Needle Model The Two-Step Flow Model Homophily-Heterophily and the Flow of Communication 10-11-2014 Diffusion Of Innovation 36
  • 37. Homophily-Heterophily A fundamental principle of human communication is that the transfer of ideas occurs most frequently between individuals who are alike, or homophilous. Homophily is the degree to which pairs of individuals who interact are similar in certain attributes, such as beliefs, education, social status, and the like. 10-11-2014 Diffusion Of Innovation 37
  • 38. A B D C E X Y Strong ties Weak ties V U W The communication link plays a crucial function in the flow of information in this network; if it were removed, the network would collapse into two unconnected cliques According to Granovetter's (1973) theory of the-strength-of-weak-ties, the low proximity B-X link is "strong" in its potential for carrying information between the two unalike cliques, thus playing a crucial role in the diffusion of innovativeness 10-11-2014 Diffusion Of Innovation 38
  • 39. Homophily-Heterophily When interpersonal diffusion networks are heterophilous, followers seek opinion leaders with more education When interpersonal diffusion networks are heterophilous, followers seek opinion leaders who are more cosmopolite When interpersonal diffusion networks are heterophilous, followers seek opinion When interpersonal diffusion networks are heterophilous, followers seek opinion leaders with greater change agent contact. leaders with greater mass media exposure. When interpersonal diffusion networks are heterophilous, followers seek opinion leaders of higher socioeconomic status. When interpersonal diffusion networks are heterophilous, followers seek opinion leaders who are more innovative. 10-11-2014 Diffusion Of Innovation 39
  • 40. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 Change agent 4 Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 40
  • 41. Change Agent 10-11-2014 Diffusion Of Innovation 41
  • 42. Change Agent An individual who influences clients' innovation decisions in a direction deemed desirable by a change agency 10-11-2014 Diffusion Of Innovation 42
  • 43. Change agent linkage ‘ One of the main roles of a change agent is to facilitate the flow of innovations from a change agency to an audience of clients ’ Client’s needs and feedback Innovation Flow to clients Change agency Client system 10-11-2014 Diffusion Of Innovation 43
  • 44. Sequence of change Agent roles LOADING… 10-11-2014 Diffusion Of Innovation 44
  • 45. Develop need for change 1 2 3 5 4 6 7 8 Sequence of change Agent roles 10-11-2014 Diffusion Of Innovation 45
  • 46. 1 2 3 5 4 6 7 8 Sequence of change Agent roles Develop need for change Establish an info exchange relationship 10-11-2014 Diffusion Of Innovation 46
  • 47. 1 2 3 5 4 6 7 8 Sequence of Develop need for change Establish an info exchange relationship change Agent roles Diagnose the problems of clients 10-11-2014 Diffusion Of Innovation 47
  • 48. 1 2 3 5 4 6 7 8 Sequence of change Agent roles Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 48
  • 49. Translate intent into action 1 2 3 5 4 6 7 8 Sequence of change Agent roles Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 49
  • 50. Stabilize adoption 1 2 3 5 4 6 7 8 Sequence of change Agent roles Translate intent into action Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 50
  • 51. Prevent discontinuance 1 2 3 5 4 6 7 8 Sequence of change Agent roles Stabilize adoption Translate intent into action Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 51
  • 52. Achieve a terminal relationship 1 2 3 5 4 6 7 8 Sequence of change Agent roles Prevent discontinuance Stabilize adoption Translate intent into action Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 52
  • 53. Para professional aides An aide is a less than fully professional change agent who intensively contacts low level socially backward clients to influence their innovation decisions Less technically Expert But Low cost per client 10-11-2014 Diffusion Of Innovation 53
  • 54. Competence credibility The degree to which a communication source or channel is perceived as knowledgeable and expert Safety credibility The degree to which a communication source or channel is perceived as trustworthy 10-11-2014 Diffusion Of Innovation 54
  • 55. Competence credibility The degree to which a communication source or channel is perceived as knowledgeable and expert Safety credibility The degree to which a communication source or channel is perceived as trustworthy Safety credibility Competence credibility 10-11-2014 Diffusion Of Innovation 55
  • 56. Barefoot Doctors They are actually part-time doctors trained to diagnose and treat common diseases without professional assistance. It might be expected that such a radical idea would face stiff opposition from the medical profession, but in China Mao had virtually wiped out the Ministry of Health in 1966 during the Cultural Revolution. So the medical profession was essentially by passed in establishing the new rural health system Socially very close to the villagers - Homophily Refer difficult cases to the community hospital 50 10-11-2014 Diffusion Of Innovation 56
  • 57. Set Fractured Bones Deliver Babies Vaccinations Emergency Appendectomy Perform Abortions Insert IUDs Suture Lacerations 10-11-2014 Diffusion Of Innovation 57
  • 58. 10-11-2014 Diffusion Of Innovation 58
  • 59. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 59
  • 60. Types of innovation decisions Collective—decide as a group, consensus Optional—voluntary, individual choice Authoritative—top down decision, must do it! 10-11-2014 Diffusion Of Innovation 60
  • 61. Innovation decision process An information-seeking and information-processing activity in which an individual is motivated to reduce uncertainty with the advantages and disadvantages of the innovation 10-11-2014 Diffusion Of Innovation 61
  • 62. STAGES OF DECISION PROCESS Knowledg e One is exposed to an innovation’s existence and gains an understanding of how it functions. Persuasio n One forms a favorable or unfavorable attitude toward the innovation. Decision One engages in activities that lead to a choice to adopt or reject. Implementatio n One put an innovation to use. Confirmation One seeks reinforcement of their decision. 10-11-2014 Diffusion Of Innovation 62
  • 63. INNOVATION DECISION PROCESS Knowledge Persuasion Interpersonal Attitude Adoption Decision Uncertainty Reduction Rejection Perceived Characteristics of Innovation Re-invention Institutionalization Implementation Confirmatio n Continue d Adoption Dissonance Discontinuanc e Replacement Disenchantment Later Adoption Dissonance Continue d Rejection 10-11-2014 Diffusion Of Innovation 63
  • 64. Knowledge implementation Persuasion Decision Confirmation Decision Process and types of decisions The decision leads to adoption or rejection Of these methods Optional Collective Authority Perceived attributes of innovation Rate of Adoption of innovation Social system Relative advantage Compatibility Observability Complexity Trialability Extent of Change agent’s promotional efforts Communication Channel 10-11-2014 Diffusion Of Innovation 64
  • 65. DIFFUSION MODELS Centralized De centralized 10-11-2014 Diffusion Of Innovation 65
  • 66. Characteristics of diffusion system Centralized diffusion system De-centralized diffusion system 1.Degree of centralization In decision making and power Over all decision by national Government administration and technical subjects expert Wide sharing of power and control among the members 2.Direction of diffusion Top down diffusion from experts To local users of innovation Peer diffusion of innovation throughhorizontal networks 3.Sources of innovation Innovation come from formal R & D conducted by technical expert Innovation comes from local experimentation By no experts, who often are users 4.Who decides which innovation to diffuse? Decision about which innovations Should be diffused are made by top administration and technical subject Local units decide which innovations should diffuse on the basis of thir informal evaluations of innovation 5.How important are clients’ needs in driving the diffusion process? An innovation-centred approach: technology -push, emphasizing needs created by availability of The innovation A problem centred approach : technology –pull, created by Locally perceived needs and problem 6.Amount of re-invention? A low degree of local adoption & re-invention of the innovation as they diffuse among adopters A high degree of local adaption & re-invention of innovations as they diffuse among adopters 10-11-2014 Diffusion Of Innovation 66
  • 67. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 67
  • 68. Case Study Guess the molecule ? 10-11-2014 Diffusion Of Innovation 68
  • 69. To find out the social processes which intervened between the initial trials of the drug by a few local innovators and its final use by virtually the whole medical community RESEARCH OBJECTIVE The study focused on the ongoing social processes which finally led to widespread adoption of the drug by physicians FOCUS Data were collected 15 months after a new drug with wide potential use, here called “tetracycline" had been placed on the market 10-11-2014 Diffusion Of Innovation 69
  • 70. 3 Sociometric Questions 1 With whom did he most often discuss his cases in the course of an ordinary week? 2 Who were the friends, among his colleagues, whom he saw most often socially? 3 With whom did he most often discuss his cases in the course of an ordinary week? The "others" named by each doctor in answer to the sociometric questions were included in the sample, so that it became possible to characterize pairs or chains of socially connected doctors 124 10-11-2014 Diffusion Of Innovation 70
  • 71. Month during which each doctor first used the drug. DEPENDENT VARIABLE This information was obtained through a search of the prescription records of the local pharmacies for three-day sampling periods at approximately monthly intervals over the 15 months following the release date of the drug 10-11-2014 Diffusion Of Innovation 71
  • 72. Data about the informal social structure of the medical community The month of each doctor's first prescription for the new drug Individual attributes of each doctor 10-11-2014 Diffusion Of Innovation 72
  • 73. The doctor's relative orientation to his professional colleagues and to patients, inferred from his answer to the following question: How would you rank the importance of these characteristics in recognizing a good doctor in a town like this? The respect in which he is held by his own patients The recognition given him by his local colleagues His general standing in the community The research and publications he has to his credit 67 57 Profession oriented Patient oriented A B C D CDAB, CADB, CBDA, CABD ABCD, ACBD, ACDB, ABDC 10-11-2014 Diffusion Of Innovation 73
  • 74. Fig.1 Relationship of the resulting classification to the date of introduction of the new drug Observation : Profession- oriented doctors generally used the drug earlier than the less profession-oriented ones Profession-oriented doctors in Figure 1 differed from the patient-oriented from the very start almost as much as later on The constant difference between the profession-oriented and patient- oriented doctors suggests that they differ individually in their receptivity to new developments in medicine 10-11-2014 Diffusion Of Innovation 74
  • 75. Fig.2 The results with regard to the network of friendships Observation : The "integrated" doctors-those named as "friends" by three or more of their colleagues-were much faster to introduce tetracycline The integrated doctors were little different from their isolated colleagues at the very beginning; but then their rate accelerated to produce an increasing gap between the curves The accelerating difference between the integrated and isolated doctors suggests a kind of "'snowball" or "chain-reaction' process for the integrated 10-11-2014 Diffusion Of Innovation 75
  • 76. 2 Fig.3 Social connection 2 Professional orientation Observation : Vs. 1 Faster rate of diffusion is observed between the doctors with high social connectivity than those who simply maintained their intrinsically different receptivity as the time went on Thus, the communication channels have a greater influence on the adoption of innovation than the individual attributes leading to adoption of innovation 1 10-11-2014 Diffusion Of Innovation 76
  • 77. s t l o e r B Saga k c b u 10-11-2014 Diffusion Of Innovation 77
  • 78. Whose brain child ? From which year D2C marketing was permitted in US ? LIPITOR “Merck and Bristol-Myers spent 10 years educating doctors to get them to use their drugs, but Lipitor, at lower doses, is a much better deal. It's kind of a marketing coup” -- Kevin Graham (Cardiologist at Minneapolis Heart Institute, Minneapolis) 10-11-2014 Diffusion Of Innovation 78
  • 79. 1997 th Mevacor Zocor Pravachol Lescol TURBOSTATIN >60% increased Efficacy "Those other companies didn't even take us seriously. They didn't think we could be a viable contender" -- Adele Gulfo, (Head of cardiovascular marketing at Warner-Lambert Co.) 10-11-2014 Diffusion Of Innovation 79
  • 80. Warner Pfizer lambert Consumer health Listerine Benadryl allergy pills Halls cough drops Sales approach : Saturation strategy PARKE DAVIS Atorvastatin 10-11-2014 Diffusion Of Innovation 80
  • 81. Positioning  Reduce heart attacks and death through cholesterol lowering capabilities  Ease of use ( no need / ease of dose titration) 72% 10-11-2014 Diffusion Of Innovation 81
  • 82. The beauty of Lipitor’s positioning is that physicians can remain ‘lazy’ by using the starting dose and then forgetting about it, but the goals achieved with Lipitor will be greater than with any other statin -- Carl Seiden, (Analyst from J.P.Morgan) 10-11-2014 Diffusion Of Innovation 82
  • 83. Promotion National cholesterol education program in association with AMA Lipitor was publicized in medical journals and at major medical conventions with pre-market comparative efficacy data Free sampling to KOL after drug approval but before official launch Pre marketing promotions Warner-Lambert and Pfizer implemented an aggressive sampling program, distributing 7.3 million samples to physicians in the first year of launch for a share of voice of slightly over 23% 10-11-2014 Diffusion Of Innovation 83
  • 84. 1997 D2C 10-11-2014 Diffusion Of Innovation 84
  • 85. 10-11-2014 Diffusion Of Innovation 85
  • 86. 10-11-2014 Diffusion Of Innovation 86
  • 87. 10-11-2014 Diffusion Of Innovation 87
  • 88. 1997 D2C Consumer Consumer KOL Don’t Kid Yourself 10-11-2014 Diffusion Of Innovation 88
  • 89. 10-11-2014 Diffusion Of Innovation 89
  • 90. The company was forced to purchase a fully operational manufacturing facility just months after Lipitor launched in an effort to keep up with In my two decades of experience within the pharmaceutical industry, I have never witnessed the launch of a fifth comparable drug to treat a non-symptomatic disease take off as rapidly as Lipitor has Hemant Shah President of HKS & Company demand Manufacturing executives admitted that the market demand was so strong that they exhausted what they thought was a 3-month drug supply virtually overnight. 10-11-2014 Diffusion Of Innovation 90
  • 91. Many observers think Lipitor succeeded because Pfizer sold it hard to the public on television and print. In fact, that is not true. Lipitor had the number one new Rx share of about 34 before Pfizer launched the campaign in 1999 The national advertising created by Bates Advertising worked and Lipitor continued to grow into the $7.6 billion brand it became in the U.S. and achieved $12.8 billion worldwide at its peak. Over the course of its patent life Lipitor sold $131 billion, the largest in drug history 10-11-2014 Diffusion Of Innovation 91
  • 92. PATIENT POURING STRATEGIES Health groups kept lowering the cholesterol targets in national guidelines New research showed the link between cholesterol levels and consequences such as heart attacks MRs repeatedly visited family doctors as well as cardiologists, and blanketed patients with data showing that Lipitor was best at lowering cholesterol MRs stressed to doctors nervous about safety that Lipitor's lowest dose worked as well as rivals' highest doses. MRs gave free samples of the white pills and sometimes bought lunch for the office staff 10-11-2014 Diffusion Of Innovation 92
  • 93. MARKETING OF MADNESS Show me a sane man and I shall cure him for you -Dr.Carl Gustav Jung (Psychiatrist and Psychotherapist) 10-11-2014 Diffusion Of Innovation 93
  • 94. 1 Billion 600% 10-11-2014 Diffusion Of Innovation 94
  • 95. Life Problems As Medical Disorders SHYNESS SOCIAL ANXIETY DISORDER PAXIL LOSS OF A LOVED ONE MAJOR DEPRESSIVE DISORDER PROZAC HOME SICKNESS SEPARATION ANXIETY DISORDER LEXAPRO SUSPECTION PARANOID PERSONALITY DISORDER ZOLOFT HAVING UPS AND DOWNS BIPOLAR DISORDER ABILIFY DISTRACTABILITY ADHD RITALIN/ADDERALL 10-11-2014 Diffusion Of Innovation 95
  • 96. Pharma companies convincing doctors to write their brands…. How to drive patients to the doctors clinics and make them believe that they are sick… Product theatres in psychiatry conferences KOL’s then convinence fellow psychiatrists Psychiatrists in turn influence GP’s for writing the prescriptions Funding of prominent medical journals and Sampling ghost writing Catch physicians young in the medical institutes.Groom them into speakers for your drugs Generate so called KOL’s 10-11-2014 Diffusion Of Innovation 96
  • 97. 10-11-2014 Direct to Consumer advertising Using internet as a channel Mental health screening concepts Diffusion Of Innovation 97 Children magazines Disease Mongering Pharma companies convincing doctors to write their brands…. How to drive patients to the doctors clinics and make them believe that they are sick…
  • 98. API of PROZAC ? Whose molecule ? PROZAC 10-11-2014 Diffusion Of Innovation 98
  • 99. The diffusion curve in the US was strongly influenced by the debates surrounding Prozac The debates about Prozac played some role in creating a resistance to the drug in the UK 10-11-2014 Diffusion Of Innovation 99
  • 100. 1980s ORAFLEX Diet control CNS Chronic diseases 10-11-2014 Diffusion Of Innovation 100
  • 101. 1980s Diet control CNS Chronic diseases Depression Fluoxetine Incidental Weight loss 10-11-2014 Diffusion Of Innovation 101
  • 102. 60% Dieting st Company to release side effects free anti obesity drug would rule the US and UK market 10-11-2014 Diffusion Of Innovation 102
  • 103. Diet Pill Anti Depressant 10-11-2014 Diffusion Of Innovation 103
  • 104. Less common Chills or fever convulsions (seizures) purple or red spots on the skin racing heartbeat excessive hunger overactive reflexes mood or behavior changes unusual tiredness or weakness difficulty with concentration cool pale skin trouble with breathing lack of energy shivering or shaking shakiness or unsteady walk headache increased thirst Drowsiness Dizziness Feeling nervous Sneezing Sore throat Side effects Nausea Upset stomach Constipation increased sweating Sleep problems dark urine Decreased sex drive Weight changes Impotence Increased appetite Dry mouth restlessness Hives itching bleeding gums inability to sit still confusion skin rash diarrhea Rare Anxiety cold sweats dryness of the mouth unusual or incomplete body or facial movements talking, feeling, and acting with excitement and activity you cannot control fast or irregular heartbeat back or leg pains chest pain or discomfort blood in the urine or stools difficulty with swallowing blindness bloody, black, or tarry stools continuing vomiting blistering, peeling, or loosening of the skin bloating cough or dry cough decreased urine output decreased vision constipation depression severe sleepiness clay-colored stools blurred vision difficulty with breathing slurred speech rapid weight gain blue-yellow color blindness dizziness or lightheadedness pinpoint red spots on the skin redness, tenderness, itching, burning, or peeling of the skin sores, ulcers, or white spots on the lips or in the mouth pain in the ankles severe muscle stiffness 10-11-2014 Diffusion Of Innovation 104
  • 105. Diffusion Communication Channels Heterophily Homophily Dr. - Dr. Co. – Dr. C - C Co. - C Dr. - C 10-11-2014 Diffusion Of Innovation 105
  • 106. MARKETING CAMPAIGN FOR DOCTORS The kind of positioning Eli Lilly did for Prozac, shifted Prozac, from Psychiatrist’s inpatient dept. to GP’s outpatient dept. 10-11-2014 Diffusion Of Innovation 106
  • 107. GP (KOLs) Psychiatrist Ghost writing Influence 10-11-2014 Diffusion Of Innovation 107
  • 108. 96 hr. of CME Depression = Chronic disease DSM produced for GP Samples Prozac = alternative for Talk therapy GP 10-11-2014 Diffusion Of Innovation 108
  • 109. 96 hr. of CME Depression = Chronic disease DSM produced for GP Samples Prozac = alternative for Talk therapy Top of the mind recall New patients poured in Continue therapy to avoid relapse GP 2/3rd of total prescriptions 10-11-2014 Diffusion Of Innovation 109
  • 110. Off label uses Diabetics and migraine Generalised Anxiety disorder Dysthymia Personality disorders Stage fright Social phobia Premenstrual Syndrome Eating disorders Borderline personality disorder “You can give Prozac to anyone you want, in fact, I have even added it to my watering can and found geraniums grow better on it.” - Mauro and Breggin 1994:47 10-11-2014 Diffusion Of Innovation 110
  • 111. Off label uses New indications Diabetics and migraine Generalised Anxiety disorder Dysthymia Personality disorders Stage fright Social phobia Premenstrual Syndrome Eating disorders Borderline personality disorder OCD Bulimia “You can give Prozac to anyone you want, in fact, I have even added it to my watering can and found geraniums grow better on it.” - Mauro and Breggin 1994:47 10-11-2014 Diffusion Of Innovation 111
  • 112. Childhood Depression 600,000 children Orange Mint 10-11-2014 Diffusion Of Innovation 112
  • 113. Ecstasy API Of Ectasy ? Mood is a light bulb and serotonin is the voltage which keeps it glowing. Prozac restores the voltage and brightens to normal. Ecstasy produces blinding flash as bulb burns out -Dr. Simpson (Medical Director, Eli Lilly) 10-11-2014 Diffusion Of Innovation 113
  • 114. D2C Company makes Products People make Brands 10-11-2014 Diffusion Of Innovation 114
  • 115. TV advertisement slots were increased from 2hrs. P.a to 16hrs.p.a You have a problem ? We have a solution Talk to your Dr. 10-11-2014 Diffusion Of Innovation 115
  • 116. Teen Screen camp School Children American Soldiers Camp in Malls Foster Children E-Forms 10-11-2014 Diffusion Of Innovation 116
  • 117. Cultural Construct of Prozac 10-11-2014 Diffusion Of Innovation 117
  • 118. A fashionable accessory designer drug, for trend highfliers, seeking to ease the anxiety of modern living Brand Personality A ‘Go for it’ drug for individualistic and independent personality people in 1990s • Self confidence • Social poise • Energy • Assertiveness • Independent 10-11-2014 Diffusion Of Innovation 118
  • 119. Recognise the person? Madness was the new Sexy Kurt Cobain got a wider fame as a suicide victim than a musician at that time 10-11-2014 Diffusion Of Innovation 119
  • 120. Prozac : Emblem of vigour and emotional individualism Prozac : Just another antidepressant And a mind deadening American fadd 10-11-2014 Diffusion Of Innovation 120
  • 121. 10-11-2014 Diffusion Of Innovation 121
  • 122. Dr.Peter D. Kramer (Psychiatrist) Prozac is not a drug and did not induce false synthetic experiences, but merely removed obstacles to feeling more content and relaxed 10-11-2014 Diffusion Of Innovation 122
  • 123. Dr.Peter D. Kramer (Psychiatrist) Prozac has become a feminist drug as it’s major users are women for the main reason being, it frees women from inhibiting consequences of trauma 10-11-2014 Diffusion Of Innovation 123
  • 124. Prozac thus slotted neatly into a classic elixir paradigm, thus being viewed as a drug which enabled people to realize their aspirations painlessly Eli Lilly criticized Dr.Kramer for creating unrealistic expectations(to be on safe side) by describing him as a part time psychiatrist and part time writer, and his book being based on personal observations and not on a controlled study 10-11-2014 Diffusion Of Innovation 124
  • 125. But by this time, Prozac was diffused extensively in the society pouring a lot of profit to Eli Lilly 10-11-2014 Diffusion Of Innovation 125
  • 126. REFFERENCES • The Diffusion of an Innovation Among PhysiciansAuthor(s): James Coleman, Elihu Katz and Herbert MenzelSource: Sociometry, Vol. 20, No. 4 (Dec., 1957), pp. 253-270 • Lipitor: At the Heart of Warner-Lambert – university of Michigan business school • Diffusion of innovation – Everett Rogers • The University of Hull - Managing the Diffusion of Medical Technologies 10-11-2014 Diffusion Of Innovation 126
  • 127. THANK YOU 10-11-2014 Diffusion Of Innovation 127[1]

References Edit

  1. Parab, S. (2014, November 10). Diffusion of Innovation. Retrieved March 28, 2015, from http://www.slideshare.net/Stratosid/diffusion-of-innovation-41334892?qid=00d15f0a-816e-4f33-a99c-be69fe7bf08e&v=default&b=&from_search=6

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