AGENDA WHAT IS MARKETING ? WHAT IS INNOVATION ? WHAT IS MARKETING INNOVATION ? WHY DO WE NEED MARKETING INNOVATION ? INNOVATION CHANNEL INNOVATION PRICING INNOVATION PRODUCT INNOVATION PROMOTION
MARKETING Marketing is the process of communicating the value of a product or service to customers. It includes the coordination of four elements called the 4 Ps of marketing : Product Promotion Price Place (Distribution)
INNOVATION The term innovation refers to a new way of doing something. An innovation is viewed as anything new that solves needs by offering a significant advantage (e.g., more features, more convenient, easier to use, lower cost, etc.) In order to generate more profits and revenue, firms offers its customers new products or services or finds new users for older products and services.
MARKETING INNOVATION• ‘A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. For example, Amazon was the first established online bookseller. Shortly thereafter, companies like Barnes and Noble started selling books online as well.
WHY DO WE NEED MARKETINGINNOVATION Steady decline in sales volume and/or revenue. Steady decline in profitability and return on investment. Steady increase in customer complaints. Products and/or services offered are essentially commodities with very little differentiation. Price competition dominates sales activity. No new or improved products or services are under development.
INNOVATION CHANNEL Creates new channels for distribution and transaction (e.g., electronic commerce) that include making it easier for buyers to place orders. 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. Implementation of a new concept for product presentation such as sales rooms for furniture that are designed according to themes, allowing customers to view products in fully decorated rooms
INNOVATION PRICING Enables the use of dynamic pricing methods. Introduction of a new method that allows customers to choose desired product specifications on the firm’s Web site and then see the price for the specified product. First-time use of in-store special offers that are only accessible to holders of the store’s credit card or reward card.
INNOVATION 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. Marketing promotion is divided into two parts. Above the line promotions primarily include mass media advertising; in mediums such as TV, radio, press, online. Below the line promotion uses more niche focused mediums; such as email, community marketing, SMS campaigns, personal sales.
INNOVATION PRODUCT Creates new products/services. Incorporating innovation into existing product/service enhances value by offering improved quality, features & reliability at a lower price. Implementation of a significant change in the design of a product to give it a new look and widen its appeal, Implementation of a fundamentally new design intended to give the product a distinctively exclusive look.