O slideshow foi denunciado.
Utilizamos seu perfil e dados de atividades no LinkedIn para personalizar e exibir anúncios mais relevantes. Altere suas preferências de anúncios quando desejar.

Diffusion of Innovation

Presentation consists of the core theory of diffusion of innovation followed by 3 case studies :
1) Diffusion of tetra cycline in the healthcare system and the effect of social factors on the same
2) Diffusion of Atorvastatin in healthcare system
3) Diffusion of Prozac in healthcare system and the dark side of pharma industry

  • Entre para ver os comentários

Diffusion of Innovation

  1. 1. Diffusion of Innovation Prasad Dalvi (04) Kamal Rajpurohit (15) Manas Prabhudesai (20) Siddhesh Parab (45)
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 28. CHARACTERISTICS OF ADOPTERS SOCIO-ECONOMIC STATUS PERSONALITY VARIABLES COMMUNICATION BEHAVIOUR 10-11-2014 Diffusion Of Innovation 28
  29. 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. 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. 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. 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. 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. 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. 35. A B Low communication proximity C D High communication proximity 10-11-2014 Diffusion Of Innovation 35
  36. 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. 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. 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. 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. 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. 41. Change Agent 10-11-2014 Diffusion Of Innovation 41
  42. 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. 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. 44. Sequence of change Agent roles LOADING… 10-11-2014 Diffusion Of Innovation 44
  45. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 57. Set Fractured Bones Deliver Babies Vaccinations Emergency Appendectomy Perform Abortions Insert IUDs Suture Lacerations 10-11-2014 Diffusion Of Innovation 57
  58. 58. 10-11-2014 Diffusion Of Innovation 58
  59. 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. 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. 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. 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. 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. 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. 65. DIFFUSION MODELS Centralized De centralized 10-11-2014 Diffusion Of Innovation 65
  66. 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. 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. 68. Case Study Guess the molecule ? 10-11-2014 Diffusion Of Innovation 68
  69. 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. 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. 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. 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. 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. 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. 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. 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. 77. s t l o e r B Saga k c b u 10-11-2014 Diffusion Of Innovation 77
  78. 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. 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. 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. 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. 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. 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. 84. 1997 D2C 10-11-2014 Diffusion Of Innovation 84
  85. 85. 10-11-2014 Diffusion Of Innovation 85
  86. 86. 10-11-2014 Diffusion Of Innovation 86
  87. 87. 10-11-2014 Diffusion Of Innovation 87
  88. 88. 1997 D2C Consumer Consumer KOL Don’t Kid Yourself 10-11-2014 Diffusion Of Innovation 88
  89. 89. 10-11-2014 Diffusion Of Innovation 89
  90. 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. 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. 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. 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. 94. 1 Billion 600% 10-11-2014 Diffusion Of Innovation 94
  95. 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. 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. 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. 98. API of PROZAC ? Whose molecule ? PROZAC 10-11-2014 Diffusion Of Innovation 98
  99. 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. 100. 1980s ORAFLEX Diet control CNS Chronic diseases 10-11-2014 Diffusion Of Innovation 100
  101. 101. 1980s Diet control CNS Chronic diseases Depression Fluoxetine Incidental Weight loss 10-11-2014 Diffusion Of Innovation 101
  102. 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. 103. Diet Pill Anti Depressant 10-11-2014 Diffusion Of Innovation 103
  104. 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. 105. Diffusion Communication Channels Heterophily Homophily Dr. - Dr. Co. – Dr. C - C Co. - C Dr. - C 10-11-2014 Diffusion Of Innovation 105
  106. 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. 107. GP (KOLs) Psychiatrist Ghost writing Influence 10-11-2014 Diffusion Of Innovation 107
  108. 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. 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. 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. 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. 112. Childhood Depression 600,000 children Orange Mint 10-11-2014 Diffusion Of Innovation 112
  113. 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. 114. D2C Company makes Products People make Brands 10-11-2014 Diffusion Of Innovation 114
  115. 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. 116. Teen Screen camp School Children American Soldiers Camp in Malls Foster Children E-Forms 10-11-2014 Diffusion Of Innovation 116
  117. 117. Cultural Construct of Prozac 10-11-2014 Diffusion Of Innovation 117
  118. 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. 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. 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. 121. 10-11-2014 Diffusion Of Innovation 121
  122. 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. 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. 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. 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. 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. 127. THANK YOU 10-11-2014 Diffusion Of Innovation 127

×