The document discusses marketing and innovation from a classical perspective. It describes the marketing concept, exchange processes, and marketing management paradigm of segmentation, targeting, and positioning using the marketing mix. It also discusses limits of this approach for business-to-business marketing, services, and relationships. The new product development process involves opportunity identification, concept development and testing, marketing strategy development, product development, and test marketing before commercialization.

1. Marketing and innovation – A Classical view

2. The Marketing ConceptMarketing 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 exchangeThe Marketing Concept is the basic philosophy which underlies theses processes and insure their coherence 2

3. Marketing as exchangeObjects of the exchangeCustomerSupplierExchange context3

4. Marketing ManagementMarketing Management refers to the first and still dominant conceptualization of MarketingIt emerged in American universities in the 50-60’s,popularized by authors like Mac Carthy, Drucker or KotlerSubsequent research demonstrated that it was mainly influenced by B2C situations4

5. Marketing Management pathDiscover the needConceive a product to fulfill the needTest this product and improve itSell the product5

6. Marketing Management paradigmSegmentation – Targeting – PositioningMarketing Mix – Four P’sPlanning process6

7. Limits of the paradigmMainlydependant on productsMainlyconcernedwith standard productsMainlyrelated to consumer markets7

8. B2B marketingInter-organizational exchangeTwo implementationMarketing Management approachSpecific marketing due to a special relation with the customerLong term relationshipCo-conception, cost sharing, etc.Network, ie the customer can be supplier8

9. Service marketingA service is intangible, non storable, non standardizedCustomer takes part in the service production process Centrality of notions like « service quality », « trust » toward the provider or « loyalty »9

10. From transaction to relation10Marketing ManagementB2BMarketing ServiceMarketing Transaction focusedImportance of the relationRelationshipMarketing

11. Marketing evolutionSell the product Before Marketing Consumer Marketing Service and B2B MarketingHigh Technology MarketingMatch the needCreate a relationCreate new needs11

12. Conclusion

13. What Marketing Is Supposed to Do …“ … create value for customers and prospects; for companies, channels and distributors; for shareholders; and for economies, societies and, yes, even governments and trading partners … ““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.”Source: Don E. Shultz, Marketing News (October 22, 2001), p. 8.13

14. What Is the Role of Marketing in an Organization?Total Organization(Culture)To shape and maintain organization’s cultural beliefs and values about the necessity and importance of providing customers with satisfaction over the long-termDivision (SBU)(Strategy)Defining the organization’s strategy for competing within a given marketOperational(Tactical)Managing the daily specifics of the marketing mix and customer-reseller relationshipsEach level must provide continuity and be consistent with the others.14

15. Integrated Marketing system15

16. Basic marketing questions Are customer-oriented strategies adapted to changes in markets and buying behavior?Are customers involved earlier in the marketing process, leading to a better understanding of customers?What are your value-added marketing strategies: quality, service, and value?How effective are your internal marketing programs for employees?16

17. -1-Innovation17

18. Key ConceptsInventionIt is the birth of new ideas; itisan object, process, or technique which displays an element of novelty (Schumpeter, 1960) ; itisrelated to science and discoveryInnovationIt is the transformation and bundling of thoseideasintomarketableproducts and services; itisboth a process and a resultNew product / serviceIt isjust the result of the innovation process18

19. What is an innovation ?An innovation is something new 19

20. Classification of innovations20

21. Henderson & Clark, 19902121

22. Chandy et Tellis (2000) 2222

23. Robertson (1967)Continuous Innovation : no impact (change) on consumer behaviorCoca Cola ZeroSemi continuous Innovation : a significant impact on consumer behaviorelectric car, mobile phoneDiscontinuous Innovation : a radical modification on consumer behaviorInternet, JAT23

24. ConclusionTwo dimensions used :TechnologyMarket3 types of classifications :OnlytechnologyOnlymarketBothAll try to explaindegrees of newness24

25. What is newness ?25

26. NewnessNewnessis a collative propertyWhatmakes us perceivesomething to be new ? The heart of newnessChange : as comparedwithwhatisknownSurprise : disconfirmation of a normal expectationIncongruence : surprise + inconsistencyFeelings related to newnessUncertainty : whatdoesitmean ?Conflict : withstiredknowledgesComplexity : hard to understand(Berlyne 1960)26

27. Impact of newnessExplorationMotivationAffectArousal(OSL)Progressive processCuriosityCatégorizationAnalogylearningCognitive facetAffective facetSomething new27

28. Newness and catégorizationCatégorizationDifferencebetweentarget and new objectExtrememoderateAssimilationAccomodationRe-CatégorizationStep by stepprocessIf impossibleIf impossibleIfimpossibleExpectations28

29. Impact of newness on affectHedonistic valueSpecificexplorationDiversiveexplorationFearStimulus intensityOSLAvoidance29

30. Newness and attractivenessTryprobabilityIncrementalRadical Degree of newness30

31. Innovation - definitionCharacteristicsRecencyChange (difference, surprise, uncongruence)Operational definition : Any recent idea service or object that imply a change in representation, thinking, judgment and/or behavior and which evaluation is uncertain (risky)As a consequence, incremental innovation is an oxymoron31

32. Innovation diffusion32

33. Purchase of an innovation33Social contextIndividualPersuasionKnowledgeDecisionImplementationConfirmationInnovationSocial context

34. 34Innovation perceptionRelative advantageCompatibilityComplexityVisibilityTriabilityPerceivedrisk

35. Innovator (B2C)InterestedintoproductcategoryHighlyinnovative, i.e. attracted by newnessTend to be opinion leaderYounger, higher revenues, urbanTend to consume a lot in the productcategory35

36. « Lead user » (Von Hippel)A user « ahead », High level of expertiseIndentifies the lacks of existing solutionsAble to adapt (tinker) existingproducts to hisownneedsVeryuseful to imagine new productideasAmong first buyers36

37. 37Categories of AdoptersTheChasm

38. CONCLUSION38

39. Main words for innovationChangeRiskUncertaintyNew behaviors …39Exactly what a company hates

40. -2-Marketing New Product Development Process

41. Stage-Gatemodel (Cooper, 2001)41

42. New Product developmentProcess (Urban and Hauser, 1998)42OpportunityseekingMarketevaluation - IdeasgenerationIdea screeningIdea validationConcept generation and testingMarketing MixProduct testing - Name, price, advertising, etc. testing -Test marketNew productlaunching

43. Idea generation43

44. Strategies for obtaining new-product ideas:Acquisition of companies, patents, licensesNew product development, product improvements and modificationsIdea GenerationInternal sources:

45. Company employees at all levels (Teian method)

46. Research and Development

47. External sources:

48. Clients/Users (Lead-Users, In-depth interviews, Ethnographic search)

49. Competitors (Reverse engineering)

50. Distributors

51. Suppliers

52. Outsourcing

53. Patents and inventions - www.inpi.fr44

54. Idea ScreeningProcess used to spot good ideas and drop poor ones.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.Evaluated against a set of company criteria for new products.Expected cash flows over time

55. Potential profitability

56. Returns on: Investment Equity Assets Sales Cost of capital Present valueOpportunity cost45

57. Concept development and testing46

58. PurposeProfile the intented marketCurrent buying patternsExisting segmentsCustomers view of available productsAssess purchase intention and product positioningTrial and repeat purchaseBrand loyaltyRefine and improve the concept OverallSpecific features and attributes47

59. Main objectivesPurchase intentionsHow to improve/enhance the basic conceptCharacteristics of potential buyersFirst elements of launching strategyTargetCompetitvepositionning48

60. Research methods usedMay be qualitative or quantitativeQualitative techniques include:In-depth interviews of individuals

61. Focus groups