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1. Innovation in Marketing
What’s Happening?

2. What is marketing
“Marketing is the analysis, planning,
implementation and control of
programmes designed to bring about
desired exchanges with target markets
for the purpose of achieving
organisational objectives.
It relies heavily on designing the
organisational offering in terms of the
target market needs and uses the
effective pricing, communication and
distribution to inform, motivate and
service the market”

3. What is marketing?
Pa
ge
3
Who
What
Why
When
Your customers
Your product /
service
Is there a pain?
Purchase
occasion?

4. What is marketing?
Pa
ge
4
How
How will your
product be used?
How will you let
people know?
How will people
buy it?

5. Who
What
Why
When
Your customers
Your product /
service
Is there a pain?
Purchase
occasion?
How
How will people
buy it?
Segmentation
Product
Price?
Promotion
Place

6. The Starbucks Innovation

7. What is marketing?
• Product – the product’s (or service’s) quality, functions, features and benefits
of its design plus packaging, guarantees and level of after-sales service
• Price – recommended prices to end-user customers, distributor trade prices,
discounts, terms of credit and pricing strategy
• Place – where and when the customer buys and consumes the product or
service
• Promotion – promotional mix used to communicate the product or service
including advertising, sales promotions, exhibitions, direct mail, pr, packaging,
selling etc

8. What is marketing?
• People, Process and Physical Environment
• People = employees and customers
• Process = production and delivery of the service
• Physical environment = interior and exterior of the buildings

9. The Complete Marketing Innovation Picture
Marketing Area Effect of Innovation
Marketing Research
Creates new ways to conduct research including more sophisticated
methods for monitoring and tracking customer behavior and analyzing
data.
Targeting Markets
Allows for extreme target marketing where marketing-to-person is
replacing mass marketing. For customer service, technology makes it
easier to manage relationships and allows for rapid response to
customer’s needs.
Product
Creates new digital products/services. Incorporation of innovation into
existing product/service enhances value by offering improved quality,
features & reliability at a lower price.
Promotion
New techniques allow better matching of promotion to customer activity
and individualized promotion. Makes it easier for sellers to offer product
suggestions and promotional tie-ins.
Distribution
Creates new channels for distribution and transaction (e.g., electronic
commerce) that include making it easier for buyers to place orders.
Allows more control over inventory management and closer monitoring
of product shipment
Pricing Enables the use of dynamic pricing methods.

10. Technology is leading Marketing Innovation

11. Marketing
Who Your customers Segmentation

12. Innovation in target marketing
Targeting Markets
Allows for extreme target marketing where marketing-
to-person is replacing mass marketing. For customer
service, technology makes it easier to manage
relationships and allows for rapid response to
customer’s needs.

13. Product
What
Your product /
service
Product

14. Product
• Core Product
− What core benefit does your product offer? Customer who purchase a camera
are buying more than just the camera, they are purchasing memories
• Actual Product
− All cameras capture memories. How do you get customers to buy yours?
Branding, adding features and benefits which offer a differential advantage over
your competitors
• Augmented Product
− What additional non-tangible benefits can you offer? After sales service,
guarantees, delivery (creating peace of mind)

15. Augmented
Product
Total Product
Core Product
For Example
• Guarantee
For Example
• Packaging
• After sales service
• Environment
For Example
• Car
• Training Services
• Graphic Design
services
Benefit
Building

16. Product as branding

17. Services
Service
Inseparability
Intangibility
Perishability
Variability

18. Service
• Intangibility
− Cannot be tasted, touched or smelled before they are bought
− Customer may find it difficult to evaluate before they purchase
− Display testimonials, case studies, referrals, brand consistency
− Innovation comes through introducing the experience prior to purchase
• Inseparability
− Simultaneous consumption and production
− How service providers conduct themselves make effect future business
− The people are the company
− Innovation comes in how the service is consumed – online seminars etc

19. Service
• Variability
− Service quality may vary depending on staff delivery
− Service faults (i.e. staff poor performance) cannot be quality checked and
corrected between production and consumption
− Innovation comes with ability to monitor customer feedback for example
• Perish ability
− Services cannot be stored for future use like a product, i.e. if a hotel room is
empty for a night its lost revenue. If a product is not sold it can be stored and
sold tomorrow
− Service providers have the problem of being able to cater for peak demand and
staff appropriately
− Innovation comes with the ability to provide flash sales, instant marketing

20. Price
Why Is there a pain? Price?

21. Innovation in Pricing
• Technology allows for
− Dynamic pricing
− Easier and closely monitored promotional pricing campaigns
−Orange Wednesday, Pizza Express
− Loyalty cards / loyalty bonus
− Contactless payments / mobile payments
• Non technology based
− For example
−Promotional pricing
− Boots 3 for 2, Waterstones
−Psychological pricing
−Referral bonuses
−Subscriptions

22. Promotion
When
Purchase
occasion?
Promotion

23. Paid
You have paid to
leverage this
Paid advertising
(print, TV, Radio,
Sponsorships)
Awareness and
stimulation
Owned
You own and
control this media
Websites
Company Blog
Corporate Brochures
Build longer term
relationships with existing
customers and potential
customers
Earned
Customers are the
channel
Word of mouth
Viral
Blogs
Social Media
Listen and
respond
The changing trend of marketing

24. Page
24

25. Paid Media
• No longer the foundation of marketing campaigns
• Now a catalyst to drive people to your owned media
• Still an important part of the marketing mix

26. Paid Media

27. Owned Media
• Take ownership of the different channels
• Reduce marketing spend on paid media
• Reach out and engage with customers to build lasting relationships

28. Earned media
• Earned media is the
result of brand behaviour
• Earned media is
technically free
• You must learn to listen
and respond to both
positive and negative
comments

29. “Your brand is what people say about you when you are not in the room”
Jeff Bezos
Founder of Amazon

30. Which social networks do small businesses use regularly
0%
5%
10%
15%
20%
25%
30%
30%
22%
14% 13%
7%
3%
11%

31. Which social networks have the most potential to help small business
0%
10%
20%
30%
40%
50%
LinkedIn Facebook Twitter You
Tube
Google + Pinterest Other /
None
41%
14%
3%
16%
4% 2%
20%

32. Possibly the most successful campaigns this century?
Page
32
18,300,000 Media impressions
870% increase in facebook
traffic
260,000 new donators
Rise from $1.7 mill to $13.3 mill
Total given now over $55 mill

33. Consumer engagement at the heart
LEADING EDGE

34. Benefit building at the heart
Page
34
Think not about
how well the baby
sleeps, but about
how much the
parents will be
affected. They're
the ones with the
pockets full of cash
to spend

35. Benefit building at the heart
Page
35

36. Benefit building at the heart
Page
36

37. Place
How
How will people
buy it?
Place

38. Innovation in Place
Tradition
al sales
E
commerc
e
M
commerc
e
What’s
next?

39. What Next?

40. What Next?

41. What Next?