Marketing & Innovation

trade & figure Beca persona the purpose of bank line is to create a customer, the business enterprise has iiand only twobasic functions market and first appearance. Marketing and insane asylum produce allows tout ensemble the perch are costs. Peter Drucker (The Father of Management Theory) INTRODUCTION Marketing is the activity, fixate of institutions, and surgical procedurees for creating, communicating, delivering, and exchanging offerings that have harbor for customers, clients, partners, and society at large. American Marketing fellowship 2007) An understructure is the implementation of a impudently-sprung(pre nominative) or significantly ameliorate growth ( redeeming(prenominal) or dish), or process, a impudent marketing regularity, or a sunrise(prenominal) organizational method in business practices, work organization or external relations. (OECD 2005) Four types of innovations are distinguished return innovations, process innovations, marketing i nnovations and organizational innovations. (OECD 2005) * A ingathering ( function of process) innovation is the cosmos of a good or service that is saucy or significantly improve with respect to its characteristics or intended uses.This includes significant improvements in technical foul specifications, components and materials, incorporated software, user friendliness or other functional characteristics. * A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software. * An organizational innovation is the implementation of a new organizational method in the firms business practices, work get in organization or external relations. A marketing innovation is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. The OCEDs definition is excessively narrow it r educes the scope of marketing by separating amidst marketing, product innovation and delivery. If we mixtureed the two definition we can propose that with a marketing lenses an innovation is the implementation of a new or significantly improved method, process or practices in creating, communicating, delivering, and xchanging offerings that have value for customers, clients, partners, and society at large * Innovation in marketing could be related to * The substructure (Iphone), * The communication (Web2. 0), * The delivery (Internet), * Or exchanging (Michelin) * offerings that have value 2 chief(prenominal) objective Understanding and mastering the process from new ideas generation to new value offering for the stakeholders Degree of differenciation of consumer expectations Degree of improvement in engine room Low High Low uninterrupted innovation(cordless phone) Market desecratethroughts (parabolic skis) High engine room breakthroughts (passage from video players t o DVD player) Radical innovation(cell phone) Innovation continuum Continuous innovation * passing to an existing product that does non require a change in breeding * Improvement of an existing product without major changes Dynamically Continuous Innovations * Modification to an existing product that requires a modest amount of learning or change in behavior to use it Discontinuous innovation (radical innovation) Major changes in the way we live * mathematical product innovation which break the rules and the norms * New consumption behaviors and use * Technology representative Sharing documents on Internet, Downloading musics, E-business and virtual stores, Free software, Hybrid autos New product organic evolution process 3 Phase 1 Idea Generation Sources of new ideas * interior idea sources * Formal research and development * Intrapreneurial programmes * External idea sources * Customers * operate customers Pilot customers methodsThe estimated annual gross sales of new pro ducts developed based on ideas generated by pilot customers are eight durations higher than estimated sales of innovations developed from more traditional methods. Pilot Customer users Brainstorming Characteristics of cogitate 1. Write a clear, focused objective 2. Select participants for the team 3. seduce for the session 4. At the session Rules for brainstorming. Rules * A conversation at the alike(p) time * Be focused on the subject * Be ocular (drawing) * Encourage crazy ideas * The quantity is more important than the quality * disallow comments have to be avoided No interruptions from outside Role of the team attractor * Contribute to, but not inhibit the flow of ideas * Dont be too controlling * Encourage participation from everyone * Introduce inventive games * Call the time out to review and evaluate ideas that have been generated manner * Write a listen of ideas (uses) * Classify ideas thanks to criteria * Find reciprocal points between application ps eudo segments 4 Interviews Motivation * decoct classifying / individual consultations Characteristics of focus group Group size 8 to 12 Group composition Homogeneous respondents prescreened Physical setting Relaxed, informal airwave Time duration 1 to 3 hours Recording Record all the discussion with sound an video Moderator Observational, interpersonal, communication skills * Individual interview font of interview Required skills Structured interview Neutrality, no prompting, no extemporization Semi-structured interview Some probing, rapport with interviewee, understanding the aims of the project Open-ended interview or depth interview Flexibility, rapport with interviewee, active listening Focus group Facilitation skills, flexibility, ability to stand back from the discussion so that group dynamics can emerge Characteristics of semi-structured individual interviews Group size brass section to face, one-one-one basis Interview structure Semi-structur ed, direct, personal interview. Use of an interview incline Physical setting Relaxed, informal atmosphere Time duration maven hour Recording Use of audiocassettes and videotapes Moderator Observational, interpersonal, communication skills * 5 Focus on semi-structural individual interview Questioning style * Open ended, non-directive * Little or no direction on how to answer * Relate to topic in own way * Use own language Probing for detail, depth, elucidation Prompting encouraging respondent to answer * Non-verbal, repeating, rephrasing, summarising * Salespeople * avail providers * Anyone with direct customer contact * Competitors Companies watch competitors ads and other communications (new-product pre-announcements) to get clues about their new products * Distributors, suppliers and others Companies watch competitors ads and other communications (new-product pre-announcements) to get clues about their new products Example of Brainstorming anti-odor product First s tep write a list of uses * Dirty socks, Ashtrays, Changing rooms, Refrigerators, Elevators, Subway tunnels * countenance step classify ideas * evolution of a notation system * A Possible today * B possible soon * C difficult and risky * Criteria * Technicity faisability, cost, market accessibility, competitors, time of solution * Third step Find common points How customers can use the product Passage from 80 ideas to 8 pseudo-market segments What is its added value? Deodorization public places Types of customers Chemicalplants Places kinfolk odors. Phase 2 Product development * Expand ideas into more fatten up product ideals * Describe features the product should have and benefits those features will provide * 6 Evaluate chance for success * Develop a marketing scheme that can be used to introduce the product to the market place After more than a decade of development, Daimler begins to commercialize its experimental fuel-cell-powered- electric automobile car Next step to d evelop this new product into utility(a) product concepts Concept 1 A moderately priced subcompact intentional as a second family car to be used round town Concept 2 A medium-cost sporty compact sympathetic to young people Concept 3 An inexpensive subcompact blue jet car Concept 4 A high-end sport utility vehicle (SUV) appealing those who love the space Phase 3 Marketing strategy development * Develop a marketing strategy that can be used to introduce the product to the market place * Identify the buns market * Estimate its size * Determine how the product can be positioned * Plan pricing, distribution and promotion expenditures Phase 4 Technical development * The product moves into product develop RD or engineering develops the product concept into a physical product Look beyond simply creating products that fill consumers needs and wants Companies work to fashion products that are both carry throughing and informal to manufacture. Phase 5 Marketing Test * It lets the company test the product and its entire marketing programme positioning, advertising, distribution, pricing, branding and budget levels Phase 6 Commercialization Launch the product * Full scale production * dispersion * Advertising * Sales promotion * and more 7 INNOVATING BY SERVICESInnovation and Marketing end The customers values issue An economic opportunity exists for an innovation when a new value proposition to customer is possible Agreeing the PSS statement (Product Service System) What is important is not our offer but what our customers do with it, there are three kinds of value propositions for an innovation. Innovation and the first customers value proposition * Customer Values are embedded in a three power points consumption scenario. * These corresponds define three kinds of value. * Stage 1 Decision (potential value) * Stage 2 The exchange (value in exchange) Stage 3 practise (value in use) Innovation in potential value First modern value proposition Innovation concerning the facilities The facilities include all company resources employees, know-how, technology, nominal goods and other facilities that must be accessible (before offer furnish is feasible). addle perceptible the strength of a promise POTENTIAL think of from facilities stage in an offer provision scenario, ex IBIS Hotel 8 POTENTIAL care for from facilities stage in a service provision scenario ex trade machine Innovation in value in exchange Second innovative value proposition Innovation concerning the transformation process This is the stage in which company resources are combined with other companies resources in piece to transform them. Companies act as prime resources integrators and the innovation consists of new slipway of co-operating, collaborating, co-branding In this case, these values in exchange will have to be new values in use for the customers to be successful treasure IN EXCHANGE from the exchange stage in an offer provision scenario ex Senseo, Nik e+ iphone app This transformation stage can also exhibit innovation concerning CUSTOMER VALUE in EXCHANGE.Offer provision can include a transformation of customer resources in terms of persons (surgery, hair cuts), physical objects (e. g. car repairs), nominal good (e. g. investment banking, rights (e. g. lawyers.. ) and/or data (tax advisors) It contains elements which are each pre-prepared within producers facilities, or are co-produced by customer and provider during the integrating and the transformation of customer resources. Innovation consists of changing the way of integrating the customers resources with those of the producers VALUE IN EXCHANGE. Innovation in producers-customers co-production ex WikipediaInnovation and the third Customers Value proposition. Innovation in customers value in use The usage stage exhibits CUSTOMER VALUE IN USE. Innovation consists of proposing to customer new values in use, perceived as new solutions. Ex Wii for the seniors Definition of serv icization The key idea behind product service systems is that consumers do not specifically demand products, per se, but rather are seeking the utility these products and function provide. By using a service to meet some needs rather than a physical object, more needs can be met with lower material and energy requirements. A product service system is a competitive system of products, services, reenforcement networks and infrastructure. The system includes product guardianship, parts recycling and eventual product replacement, which satisfy customer needs competitively and with lower environmental impact all over the disembodied spirit cycle. A Product-Service System can be defined as the result of an innovation strategy, shifting the business focus from designing and marketing physical products only, to selling a system of products and services which are collectively capable of fulfilling specific client demands. Meeting consumers needs with a mix of products and services is not a new concept. House rentals, hotels, taxis and restaurants are good examples based on economic interest. There are other new and innovative applications of product service systems that have developed as a response to make business more sustainable. The main difference between product service systems and the classic examples is that the preference of consumers is influenced by environmental, as nearly as economic interests.Source UNITED NATIONS ENVIRONMENT PROGRAMME DIVISION OF TECHNOLOGY, sedulousness AND ECONOMICS 10 Innovation by servicization an attractive way to inaugurate on the markets Three ways to develop innovation by servicization 1- Product oriented services Provided to increase or optimize the product life cycle, these supplementary services are offered to guarantee functionality and durability of the product (e. g. maintenance and repair, upgrading and substitution services over a specified time period, offer and consultancy for use optimisation, etc. ). 2- U sage oriented servicesThe product is made accessible in a different form to the customer, is sometimes shared by number of users, but stays in ownership with the provider. It is the usage of the product rather than the product itself that is invoiced, without transfer of ownership (e. g. car sharing or car pooling, tools location, financial leasing, etc. ). Ex http//www. lamachineduvoisin. fr/ 3- Result-oriented services (functional economy) Result-oriented services (or functional services) in this most accomplished form of servicization, the seller does not sell a product anymore to the customer, but the desired result rendered by the product.Rather than selling pesticides to farmers for example, the seller decides to offer a global service contract that guarantee a maximal acceptable loss on crops. A BM based on the sold products quantity A BM based on a service rate distribute a maximum loss rate on crops Firm in functional service is looking for less costly alternating solutio ns as the reintroduction of parasitics predatories or the earth reoxygenation by earthworms or using R&D in biology, agronomy, entomology.. The competitiveness of the seller depends on its ability to optimise the PSS utilise to chance upon this goal and to use the least possible resources and energy to reach the targeted acceptable loss. Such functional services are implemented with gravid success by companies such as Xerox (Xerox Global Services) or Michelin (Michelin Fleet Solutions) for example.