Marketing and innovation – A Classical view<br />
The Marketing Concept<br />Marketing is a set of exchange processes developed to reach the objectives of the organization ...
Marketing as exchange<br />Objects of the exchange<br />Customer<br />Supplier<br />Exchange context<br />3<br />
Marketing Management<br />Marketing Management refers to the first and still dominant conceptualization of Marketing<br />...
Marketing Management path<br />Discover the need<br />Conceive a product to fulfill the need<br />Test this product and im...
Marketing Management paradigm<br />Segmentation – Targeting – Positioning<br />Marketing Mix – Four P’s<br />Planning proc...
Limits of the paradigm<br />Mainlydependant on products<br />Mainlyconcernedwith standard products<br />Mainlyrelated to c...
B2B marketing<br />Inter-organizational exchange<br />Two implementation<br />Marketing Management approach<br />Specific ...
Service marketing<br />A service is intangible, non storable, non standardized<br />Customer takes part in the service pro...
From transaction to relation<br />10<br />Marketing <br />Management<br />B2B<br />Marketing <br />Service<br />Marketing ...
Marketing evolution<br />Sell the product <br />Before Marketing  <br />Consumer Marketing <br />Service and B2B <br />   ...
Conclusion<br />
What Marketing Is Supposed to Do …<br />“ … create value for customers and prospects; for companies, channels and distribu...
What Is the Role of Marketing in an Organization?<br />Total Organization<br />(Culture)<br />To shape and maintain organi...
Integrated Marketing system<br />15<br />
Basic marketing questions  <br />Are customer-oriented strategies adapted to changes in markets and buying behavior?<br />...
-1-Innovation<br />17<br />
Key Concepts<br />Invention<br />It is the birth of new ideas; itisan object, process, or technique which displays an elem...
What is an innovation ?<br />An innovation is something new <br />19<br />
Classification of innovations<br />20<br />
Henderson & Clark, 1990<br />21<br />21<br />
Chandy et Tellis (2000) <br />22<br />22<br />
Robertson (1967)<br />Continuous Innovation : no impact (change) on consumer behavior<br />Coca Cola Zero<br />Semi contin...
Conclusion<br />Two dimensions used :<br />Technology<br />Market<br />3 types of classifications :<br />Onlytechnology<br...
What is newness ?<br />25<br />
Newness<br />Newnessis a collative property<br />Whatmakes us perceivesomething to be new ? <br />The heart of newness<br ...
Impact of newness<br />Exploration<br />Motivation<br />Affect<br />Arousal(OSL)<br />Progressive <br />process<br />Curio...
Newness and catégorization<br />Catégorization<br />Differencebetweentarget and new object<br />Extreme<br />moderate<br /...
Impact of newness on affect<br />Hedonistic<br /> value<br />Specific<br />exploration<br />Diversive<br />exploration<br ...
Newness and attractiveness<br />Tryprobability<br />Incremental<br />Radical  <br />Degree of newness<br />30<br />
Innovation - definition<br />Characteristics<br />Recency<br />Change (difference, surprise, uncongruence)<br />Operationa...
Innovation diffusion<br />32<br />
Purchase of an innovation<br />33<br />Social context<br />Individual<br />Persu<br />asion<br />Knowledge<br />Decision<b...
34<br />Innovation perception<br />Relative advantage<br />Compatibility<br />Complexity<br />Visibility<br />Triability<b...
Innovator (B2C)<br />Interestedintoproductcategory<br />Highlyinnovative, i.e. attracted by newness<br />Tend to be opinio...
« Lead user » (Von Hippel)<br />A user « ahead », <br />High level of expertise<br />Indentifies the lacks of existing sol...
37<br />Categories of Adopters<br />The<br />Chasm<br />
CONCLUSION<br />38<br />
Main words for innovation<br />Change<br />Risk<br />Uncertainty<br />New behaviors<br /> …<br />39<br />Exactly what a co...
-2-<br />Marketing New Product Development Process<br />
Stage-Gatemodel (Cooper, 2001)<br />41<br />
New Product developmentProcess (Urban and Hauser, 1998)<br />42<br />Opportunityseeking<br />Marketevaluation - Ideasgener...
Idea generation<br />43<br />
Strategies for obtaining new-product ideas:<br />Acquisition of companies, patents, licenses<br />New product development,...
Company employees at all levels (Teian method)
Research and Development
External sources:
Clients/Users (Lead-Users, In-depth interviews, Ethnographic search)
Competitors (Reverse engineering)
Distributors
Suppliers
Outsourcing
Patents and inventions - www.inpi.fr</li></ul>44<br />
Idea Screening<br />Process used to spot good ideas and drop poor ones.<br />Executives provide a description of the produ...
Potential profitability
Returns on:</li></ul>                   Investment<br />                   Equity<br />                   Assets<br />    ...
Concept development and testing<br />46<br />
Purpose<br />Profile the intented market<br />Current buying patterns<br />Existing segments<br />Customers view of availa...
Main objectives<br />Purchase intentions<br />How to improve/enhance the basic concept<br />Characteristics of potential b...
Research methods used<br />May be qualitative or quantitative<br />Qualitative techniques include:<br /><ul><li>In-depth i...
Focus groups
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Seminario Internacional - Inovação e Marketing - Prof. Gilles Roehrich (UPMF) / Sustentare

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Seminario Internacional - Inovação e Marketing - Prof. Gilles Roehrich (UPMF) / Sustentare

  1. 1. Marketing and innovation – A Classical view<br />
  2. 2. The Marketing Concept<br />Marketing is a set of exchange processes developed to reach the objectives of the organization by the satisfaction of the needs of the other part of the exchange<br />The Marketing Concept is the basic philosophy which underlies theses processes and insure their coherence <br />2<br />
  3. 3. Marketing as exchange<br />Objects of the exchange<br />Customer<br />Supplier<br />Exchange context<br />3<br />
  4. 4. Marketing Management<br />Marketing Management refers to the first and still dominant conceptualization of Marketing<br />It emerged in American universities in the 50-60’s,popularized by authors like Mac Carthy, Drucker or Kotler<br />Subsequent research demonstrated that it was mainly influenced by B2C situations<br />4<br />
  5. 5. Marketing Management path<br />Discover the need<br />Conceive a product to fulfill the need<br />Test this product and improve it<br />Sell the product<br />5<br />
  6. 6. Marketing Management paradigm<br />Segmentation – Targeting – Positioning<br />Marketing Mix – Four P’s<br />Planning process<br />6<br />
  7. 7. Limits of the paradigm<br />Mainlydependant on products<br />Mainlyconcernedwith standard products<br />Mainlyrelated to consumer markets<br />7<br />
  8. 8. B2B marketing<br />Inter-organizational exchange<br />Two implementation<br />Marketing Management approach<br />Specific marketing due to a special relation with the customer<br />Long term relationship<br />Co-conception, cost sharing, etc.<br />Network, ie the customer can be supplier<br />8<br />
  9. 9. Service marketing<br />A service is intangible, non storable, non standardized<br />Customer takes part in the service production process <br />Centrality of notions like « service quality », « trust » toward the provider or « loyalty »<br />9<br />
  10. 10. From transaction to relation<br />10<br />Marketing <br />Management<br />B2B<br />Marketing <br />Service<br />Marketing <br />Transaction <br />focused<br />Importance of <br />the relation<br />Relationship<br />Marketing<br />
  11. 11. Marketing evolution<br />Sell the product <br />Before Marketing <br />Consumer Marketing <br />Service and B2B <br /> Marketing<br />High Technology<br /> Marketing<br />Match the need<br />Create a relation<br />Create new needs<br />11<br />
  12. 12. Conclusion<br />
  13. 13. What Marketing Is Supposed to Do …<br />“ … create value for customers and prospects; for companies, channels and distributors; for shareholders; and for economies, societies and, yes, even governments and trading partners … “<br />“If we start to think about marketing as value creation, it promotes a different mindset among those who practice it, manage it, approve it as an organizational activity and enjoy the benefits.”<br />Source: Don E. Shultz, Marketing News (October 22, 2001), p. 8.<br />13<br />
  14. 14. What Is the Role of Marketing in an Organization?<br />Total Organization<br />(Culture)<br />To shape and maintain organization’s cultural beliefs and values about the necessity and importance of providing customers with satisfaction over the long-term<br />Division (SBU)<br />(Strategy)<br />Defining the organization’s strategy for competing within a given market<br />Operational<br />(Tactical)<br />Managing the daily specifics of the marketing mix and customer-reseller relationships<br />Each level must provide continuity and be consistent with the others.<br />14<br />
  15. 15. Integrated Marketing system<br />15<br />
  16. 16. Basic marketing questions <br />Are customer-oriented strategies adapted to changes in markets and buying behavior?<br />Are customers involved earlier in the marketing process, leading to a better understanding of customers?<br />What are your value-added marketing strategies: quality, service, and value?<br />How effective are your internal marketing programs for employees?<br />16<br />
  17. 17. -1-Innovation<br />17<br />
  18. 18. Key Concepts<br />Invention<br />It is the birth of new ideas; itisan object, process, or technique which displays an element of novelty (Schumpeter, 1960) ; itisrelated to science and discovery<br />Innovation<br />It is the transformation and bundling of thoseideasintomarketableproducts and services; itisboth a process and a result<br />New product / service<br />It isjust the result of the innovation process<br />18<br />
  19. 19. What is an innovation ?<br />An innovation is something new <br />19<br />
  20. 20. Classification of innovations<br />20<br />
  21. 21. Henderson & Clark, 1990<br />21<br />21<br />
  22. 22. Chandy et Tellis (2000) <br />22<br />22<br />
  23. 23. Robertson (1967)<br />Continuous Innovation : no impact (change) on consumer behavior<br />Coca Cola Zero<br />Semi continuous Innovation : a significant impact on consumer behavior<br />electric car, mobile phone<br />Discontinuous Innovation : a radical modification on consumer behavior<br />Internet, JAT<br />23<br />
  24. 24. Conclusion<br />Two dimensions used :<br />Technology<br />Market<br />3 types of classifications :<br />Onlytechnology<br />Onlymarket<br />Both<br />All try to explaindegrees of newness<br />24<br />
  25. 25. What is newness ?<br />25<br />
  26. 26. Newness<br />Newnessis a collative property<br />Whatmakes us perceivesomething to be new ? <br />The heart of newness<br />Change : as comparedwithwhatisknown<br />Surprise : disconfirmation of a normal expectation<br />Incongruence : surprise + inconsistency<br />Feelings related to newness<br />Uncertainty : whatdoesitmean ?<br />Conflict : withstiredknowledges<br />Complexity : hard to understand<br />(Berlyne 1960)<br />26<br />
  27. 27. Impact of newness<br />Exploration<br />Motivation<br />Affect<br />Arousal(OSL)<br />Progressive <br />process<br />Curiosity<br />Catégorization<br />Analogylearning<br />Cognitive facet<br />Affective facet<br />Something new<br />27<br />
  28. 28. Newness and catégorization<br />Catégorization<br />Differencebetweentarget and new object<br />Extreme<br />moderate<br />Assimilation<br />Accomodation<br />Re-Catégorization<br />Step by stepprocess<br />If impossible<br />If impossible<br />If<br />impossible<br />Expectations<br />28<br />
  29. 29. Impact of newness on affect<br />Hedonistic<br /> value<br />Specific<br />exploration<br />Diversive<br />exploration<br />Fear<br />Stimulus <br />intensity<br />OSL<br />Avoidance<br />29<br />
  30. 30. Newness and attractiveness<br />Tryprobability<br />Incremental<br />Radical <br />Degree of newness<br />30<br />
  31. 31. Innovation - definition<br />Characteristics<br />Recency<br />Change (difference, surprise, uncongruence)<br />Operational definition : <br /> Any recent idea service or object that imply a change in representation, thinking, judgment and/or behavior and which evaluation is uncertain (risky)<br />As a consequence, incremental innovation is an oxymoron<br />31<br />
  32. 32. Innovation diffusion<br />32<br />
  33. 33. Purchase of an innovation<br />33<br />Social context<br />Individual<br />Persu<br />asion<br />Knowledge<br />Decision<br />Imple<br />mentation<br />Confir<br />mation<br />Innovation<br />Social context<br />
  34. 34. 34<br />Innovation perception<br />Relative advantage<br />Compatibility<br />Complexity<br />Visibility<br />Triability<br />Perceivedrisk<br />
  35. 35. Innovator (B2C)<br />Interestedintoproductcategory<br />Highlyinnovative, i.e. attracted by newness<br />Tend to be opinion leader<br />Younger, higher revenues, urban<br />Tend to consume a lot in the productcategory<br />35<br />
  36. 36. « Lead user » (Von Hippel)<br />A user « ahead », <br />High level of expertise<br />Indentifies the lacks of existing solutions<br />Able to adapt (tinker) existingproducts to hisownneeds<br />Veryuseful to imagine new productideas<br />Among first buyers<br />36<br />
  37. 37. 37<br />Categories of Adopters<br />The<br />Chasm<br />
  38. 38. CONCLUSION<br />38<br />
  39. 39. Main words for innovation<br />Change<br />Risk<br />Uncertainty<br />New behaviors<br /> …<br />39<br />Exactly what a company hates<br />
  40. 40. -2-<br />Marketing New Product Development Process<br />
  41. 41. Stage-Gatemodel (Cooper, 2001)<br />41<br />
  42. 42. New Product developmentProcess (Urban and Hauser, 1998)<br />42<br />Opportunityseeking<br />Marketevaluation - Ideasgeneration<br />Idea screening<br />Idea validation<br />Concept generation and testing<br />Marketing Mix<br />Product testing - Name, price, advertising, etc. testing -Test market<br />New productlaunching<br />
  43. 43. Idea generation<br />43<br />
  44. 44. Strategies for obtaining new-product ideas:<br />Acquisition of companies, patents, licenses<br />New product development, product improvements and modifications<br />Idea Generation<br /><ul><li>Internal sources:
  45. 45. Company employees at all levels (Teian method)
  46. 46. Research and Development
  47. 47. External sources:
  48. 48. Clients/Users (Lead-Users, In-depth interviews, Ethnographic search)
  49. 49. Competitors (Reverse engineering)
  50. 50. Distributors
  51. 51. Suppliers
  52. 52. Outsourcing
  53. 53. Patents and inventions - www.inpi.fr</li></ul>44<br />
  54. 54. Idea Screening<br />Process used to spot good ideas and drop poor ones.<br />Executives provide a description of the product along with estimates of market size, product price, development time and costs, manufacturing costs, and rate of return.<br />Evaluated against a set of company criteria for new products.<br /><ul><li>Expected cash flows over time
  55. 55. Potential profitability
  56. 56. Returns on:</li></ul> Investment<br /> Equity<br /> Assets<br /> Sales<br /> Cost of capital<br /> Present value<br /><ul><li>Opportunity cost</li></ul>45<br />
  57. 57. Concept development and testing<br />46<br />
  58. 58. Purpose<br />Profile the intented market<br />Current buying patterns<br />Existing segments<br />Customers view of available products<br />Assess purchase intention and product positioning<br />Trial and repeat purchase<br />Brand loyalty<br />Refine and improve the concept <br />Overall<br />Specific features and attributes<br />47<br />
  59. 59. Main objectives<br />Purchase intentions<br />How to improve/enhance the basic concept<br />Characteristics of potential buyers<br />First elements of launching strategy<br />Target<br />Competitvepositionning<br />48<br />
  60. 60. Research methods used<br />May be qualitative or quantitative<br />Qualitative techniques include:<br /><ul><li>In-depth interviews of individuals
  61. 61. Focus groups
  62. 62. Projective methods</li></ul>Quantitative techniques include:<br /><ul><li>Surveys using structured questionnaires
  63. 63. Personally administered
  64. 64. Administered by mail, phone or Internet questioning
  65. 65. May focus on a single concept (monadic) or
  66. 66. Invite comparisons between two or more concepts.</li></ul>49<br />
  67. 67. Method for concept testing<br />Qualitative methods<br />In depth interviews<br />Focus groups<br />Projective methods<br />Quantitative methods<br />Surveys<br />Face to face questionnaires<br />Small samples<br />50<br />
  68. 68. Source : Mohr, Sengupta, Slater, 2005<br />Marketing strategy and business analysis<br />51<br />
  69. 69. Marketing Strategy Development<br />Part One:<br />Describes the target market, planned product positions, sales, market share, and profit goals.<br />Part Two:<br />Outlines the product’s planned price, distribution, and marketing budget.<br />Part Three:<br />Describes the long-run sales and profit goals, marketing mix strategy.<br />52<br />
  70. 70. Business Analysis<br />Involves a review of the sales, costs, and profit projections to assess fit with company objectives.<br />If results are positive, project moves to the product development phase.<br />53<br />
  71. 71. Source : Mohr, Sengupta, Slater, 2005<br />Product development<br />54<br />
  72. 72. Product Development<br />Develop concept into physical product.<br />Calls for large jump in investment.<br />Prototypes are made.<br />Prototype must have correct physical features and convey psychological characteristics.<br />55<br />
  73. 73. Source : Mohr, Sengupta, Slater, 2005<br />Test marketing and commercialisation<br />56<br />
  74. 74. Test Marketing<br />Product and program introduced in more realistic market setting.<br />Not needed for all products.<br />Can be expensive and time consuming, but better than making major marketing mistake.<br />57<br />
  75. 75. Commercialization<br />Must decide on timing (i.e., when to introduce the product).<br />Must decide on where to introduce the product (e.g., single location, state, region, nationally, internationally).<br />Must develop a market rollout plan.<br />58<br />
  76. 76. Source : Mohr, Sengupta, Slater, 2005<br />Conclusion<br />59<br />
  77. 77. New-Product Failures<br />Only 10% of new consumer products are still on the market and profitable after 3 years.<br />Industrial products failure rate as high as 30%.<br />Why do products fail?<br />Overestimation of market size<br />Design problems<br />Incorrectly positioned, priced, or advertised<br />Pushed despite poor marketing research findings<br />Development costs<br />Competition<br />60<br />
  78. 78. What about this process<br />A response to needs process<br />Mainly transactional<br />Mainly relates on customers evaluation of the innovation<br />61<br />

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