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Customer Centric Innovation Marketing
The document discusses innovation marketing and creating segmented customer experiences for successful innovation diffusion. It covers key topics such as: 1. The differences between innovation and traditional marketing and why innovation marketing requires a changed approach. 2. Success factors for an innovation diffusion strategy include favorable innovation characteristics, a business strategy based on customer insight that recognizes different customer profiles, and a communication strategy tailored to profiles. 3. Different customer profiles exist within markets, from innovators to conservatives, and have distinct characteristics. Successful innovation marketing requires understanding these profiles and communicating differently to each.
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Customer Centric Innovation Marketing
- 1. Customer CentricCustomer Centric InnovationMarketingInnovation Marketing oror How to create segmentedHow to create segmentedHow to create segmentedHow to create segmented customer experiences forcustomer experiences forcustomer experiences forcustomer experiences for successful innovation diffusionsuccessful innovation diffusion INNOVATION MARKETING Dr. Ute Hillmer 8th July, 2011
- 2. Content of theLecture 1. Why is Innovation Marketing different? 2. Success factors of an innovation diffusion strategy 3 Key Elements of successful technology diffusion3. Key Elements of successful technology diffusion 4. Customer profiles 5. Best Practice Innovation Marketing INNOVATION MARKETING
- 3. Why isWhy is InnovationInnovation MarketingMarketing difft??different?? “… most new TECHNOLOGIES change the way you do things” INNOVATION MARKETING
- 4. Technology Marketing isdifferentgy g ... thus we have to changeto change how we do thingsthings... INNOVATION MARKETING
- 5. Directly involved Innovation Resources:R&D andResources: R&D and Marketing (inbound+outbound)Marketing (inbound outbound) Cash flow over time Market Demand:Market Demand: Product Lifecycle R&D inbound Marketing INNOVATION MARKETING outbound Marketing
- 6. An Idealized InnovationLifecycleAn Idealized Innovation Lifecycle Continuous InnovationDisruptive Innovation earketsizeMa Time Laggards 16% Late Majority Early Adopters Early Majority Innovators 2,5% INNOVATION MARKETINGRogers Diffusion of Innovation 1995 16% 34%13,5% 34%
- 7. Diffusion of anInnovation: Variations rketsize Ti Ma Time e rketsize Marketsiz Ma Time M INNOVATION MARKETING TimeRogers Diffusion of Innovation Moore; Crossing the Chasm
- 8. Success Factors ofan Innovation Diffusion Strategy 1. Favourable characteristics of innovation. 2. Business Strategy that is based on customer insight and recognises different customer profiles within a market category. 3. Communication Strategy wheregy communication content and communication vehicle considers point 1+2.p INNOVATION MARKETINGE.Rogers, Diffusion of Innovation, 1995
- 9. Key Elements ofsuccessfuly Innovation Marketing Characteristics of innovation CustomerCustomer insightinsight Communication strategy INNOVATION MARKETINGE.Rogers, Diffusion of Innovation, 1995
- 10. “I ti ”“Innovativeness” degreeto which an individual or a unit is relatively= degree to which an individual or a unit is relatively earlier in adopting new technologies than other members of a system INNOVATION MARKETING Rogers Diffusion of Innovation 1995
- 11.
- 12. Individual Adopter Categorization thB i f I tion the Basis of Innovativeness Marketsize Conservatives: Pragmatists: Stick with the herd! M Skeptics: No way! Hold on! Visionaries: Get ahead!Techies: No way!Get ahead!Techies: Try it! Time LaggardsLate Majority Early Adopters Early Majority Innovators INNOVATION MARKETINGMoore; Crossing the Chasm
- 13. RecapRecap • Innovations diffuseat different speed • Within ONE customer category there areWithin ONE customer category there are typical customer profiles. Paying attention to them and communicating with the customer profiles in mind will help diffuse anprofiles in mind will help diffuse an innovation. INNOVATION MARKETING
- 14. Innovators: Techies Technology istheir life Technology - Crazy – Spend hours to get the product to workp g p – Do everything to help the product – Technology should be for free Forgiving souls Don’t mind lousy documentation and weird procedures– Don t mind lousy documentation and weird procedures to achieve functionality – Want technology first – no need for a sales channelWant technology first no need for a sales channel Their role: they move technology forward but do INNOVATION MARKETING not generate much diffusion + generate no income Moore; Crossing the Chasm
- 15. Visionaries Technology enthusiastic businessmen, drivenby a dreamdriven by a dream Businessman first - driven to be the first - new technologies are used to serve their own strategic benefitg g - want fundamental improvements - make business world aware of new technologiesmake business world aware of new technologies - not very price-sensitive, have project budget - live in the futurelive in the future INNOVATION MARKETINGMoore; Crossing the Chasm
- 16. Visionaries (2)Visionaries (2) Takea risk - love publicitylove publicity - risky projects - start projects from ground up, don‘t want standards, want to develop them, p - buy by intuition (but may claim otherwise) - highly motivated, driven by a dream INNOVATION MARKETINGMoore; Crossing the Chasm
- 17. Visionaries (3)Visionaries (3) Ell t i tExcellent communicators - charismatic; they fight for their project - like to serve as a reference / opinion leader - network with techies and clever peoplenetwork with techies and clever people - too many references de-motivate visionaries l l ki f id d i i ti- always looking for new ideas and inspiration Their role: they fund the product development, give the innovation a “real” application and INNOVATION MARKETING g pp serve as an opinion leader. Moore; Crossing the Chasm
- 18. Pragmatistsg Look for measurable,incremental improvement Driven by business resultsDriven by business results - improved productivity Avoid risk - risk is a negative termrisk is a negative term - want to work with market leader/ established firms - look for product quality, support, consulting, goodlook for product quality, support, consulting, good interfaces, reliability - want standards, “save buys” - need references - live in the present INNOVATION MARKETINGMoore; Crossing the Chasm
- 19. Pragmatists (2)Pragmatists (2) Loyalcustomers • are interested in company they buy from • revenue / profit should grow steadily “stability”• revenue / profit should grow steadily stability • network within company and industry • the first mass market Their role: They hold the key to the massy y market BUT: you need to be established in order forBUT: you need to be established in order for them to buy from you but you don‘t get established until they buy from you ! ? INNOVATION MARKETING estab s ed u t t ey buy o you Moore; Crossing the Chasm
- 20. Pragmatists (3)Pragmatists (3) Consequencesout of this profile One really needs to be familiar with the processes and issues that worry the pragmatists Offer a clear relative advantage to them INNOVATION MARKETINGMoore; Crossing the Chasm
- 21. ConservativesConservatives “I don’t haveto like the product, even if I use it” - They do what pragmatics do but later- They do what pragmatics do, but later - Invest in technology to keep up with competition - Have low technical competence INNOVATION MARKETINGMoore; Crossing the Chasm
- 22. Conservatives (2)Conservatives (2) -predictable - want everything faster, cheaper, improvedy g , p , p - are price sensitive - like bundles, pre-installed solutions - “if it isn’t broken, don’t fix it”if it isn t broken, don t fix it - very interested in 24/7 service and support Their role: huge mass market INNOVATION MARKETING e o e uge ass a et Moore; Crossing the Chasm
- 23. Individual Adopter Categorization thB i f I tion the Basis of Innovativeness Marketsize Conservatives: Pragmatists: Stick with the herd! M Skeptics: No way! Hold on! Visionaries: Get ahead!Techies: No way!Get ahead!Techies: Try it! Time LaggardsLate Majority Early Adopters Early Majority Innovators INNOVATION MARKETING
- 24. Mainstream BehaviourMainstream Behaviour lative doptions Noncumul mberofad N num Increasingly conformingbehaviour GROUP identities TimeLaggardsLate Majority Early Adopters Early Majority Innovators INNOVATION MARKETINGHillmer, Technology Acceptance in Mechatronics, 2009.
- 25. Individualistic BehaviourIndividualistic Behaviour lative doptions Noncumul mberofad N num Increasingly individualistic behaviour ROLEidentities TimeLaggardsLate Majority Early Adopters Early Majority Innovators INNOVATION MARKETINGHillmer, Technology Acceptance in Mechatronics, 2009.
- 26. Marketing Content Generation,based ong , Adopter Categorization Size Technical MarketS Knowledge Challenge Stability Tech. Competitive Challenge y Security Managerial Challenge Managerial Competence W k Lif B l Managerial Challenge T h i l C t Tech. Competitive Challenge Work-Life Balance Technical Competence Adoption Time INNOVATION MARKETING Adoption Time Hillmer, Technology Acceptance in Mechatronics, 2009.
- 27. Trustbuilding with Pragmatic InnovationCustomers Concentrate a overwhelming power on a„Concentrate a overwhelming power on a small, focused target market segment“ FOCUS Customer INNOVATION MARKETING
- 28. Best Practice InnovMarketingBest Practice Innov. Marketing INNOVATION MARKETING
- 29. Best Practice InnovMarketingBest Practice Innov. Marketing INNOVATION MARKETING
- 30. Best Practice InnovMarketingBest Practice Innov. Marketing INNOVATION MARKETING
- 31. Pictures Curtesy ofPicturesCurtesy of Vi i b t l h /A ti l /U l dFil /2Visionary www.beautyangleshop.com/Article/UploadFiles/2 Pragmatist http://us.cdn4.123rf.com/168nwm/nyul/nyul0901/nyul090100351/4130478- t it f h f l b i h ldi ili j dportrait-of-happy-successful-businessman-holding-newspaper-smiling.jpg oder http://us.cdn2.123rf.com/168nwm/patrick1958/patrick19580805/patrick195808 0500253/3081392-handsome-young-successful-businessman-sitting-on-bar- stool white background studio shot jpgstool-white-background--studio-shot.jpg Conservative: http://us.cdn4.123rf.com/168nwm/logos/logos1003/logos100301371/7808434- i d b i jworried-businessman.jpg Laggard http://www.123rf.com/photo_8228428_portrait-of-busy-chief-calling-by- phone-and-refusing-from-cup-of-coffee-held-by-his-secretary.html Herde www.baeren-blatt.de/juniorline/dpa-JuniorLine- images/Pferdeherde_20742838.onlineBild.jpg INNOVATION MARKETING
- 32. The End!The End! Thankyouy INNOVATION MARKETING