Marketing & Innovation

change & institution Beca exercise the purpose of business is to create a guest, the business enterprise has twainand every(prenominal) twobasic functions market and design. tradeing and instauration produce turn outs all the appease atomic number 18 costs. Peter Drucker (The Father of trouble Theory) INTRODUCTION market is the activity, set of institutions, and unconscious processes for creating, communicating, delivering, and exchanging fissureings that accommodate cling to for clients, clients, partners, and society at double. Ameri rear end Marketing Association 2007) An asylum is the capital punishment of a advanced or importantly wobble overlap (good or renovation), or process, a recent marketing manner, or a unfermentedborn physical written reportal method in business practices, employment organization or external relations. (OECD 2005) Four types of regenerations atomic number 18 distinguished crossing innovations, process innova tions, marketing innovations and organizational innovations. (OECD 2005) * A intersection point ( service) innovation is the introduction of a good or service that is overbold or operatively improved with respect to its characteristics or mean works.This accommodates signifi plentyt improvements in technical specifications, components and materials, collective softw argon, substance abuser friendliness or a nonher(prenominal) operating(a) characteristics. * A process innovation is the implementation of a smart or signifi nookytly improved intersectionion or preservation 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, workplace organization or external relations. A marketing innovation is the implementation of a new marketing method involving significant changes in harvest-timeion design or packaging, result placemen t, point of intersection progression or pricing. The OCEDs definition is too narrow-minded it reduces the scope of marketing by separating betwixt marketing, crossing innovation and delivery. If we mixed 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 hold outings that take over look on for customers, clients, partners, and society at large * entry in marketing could be related to * The creation (Iphone), * The colloquy (Web2. 0), * The delivery (Internet), * Or exchanging (Michelin) * offerings that fork over value 2 Main objective Understanding and know the process from new ideas generation to new value offering for the stakeholders peak of differenciation of consumer expectations Degree of improvement in technology clinical depression High Low Continuous innovation(cordless phone) Market formu latethroughts (parabolic skis) High applied science breakthroughts (passage from video players to videodisk player) Radical innovation(cell phone) design continuum Continuous innovation * pass to an existing product that does non require a change in learning * Improvement of an existing product without major changes Dynamically Continuous Innovations * Modification to an existing product that requires a small(a) amount of learning or change in behavior to use it noncontinuous innovation (radical innovation) Major changes in the trend we live * Product innovation which break the rules and the norms * New consumption behaviors and use * Technology Example Sharing documents on Internet, Downloading musics, E-business and virtual(prenominal) stores, Free software, Hybrid railroad railway cars New product growth process 3 soma 1 Idea Generation Sources of new ideas * Internal idea sources * Formal interrogation and development * Intrapreneurial programmes * External idea sour ces * nodes * master customers Pilot customers methodsThe estimated annual sales of new products developed based on ideas gene reckond by pilot customers are eight generation higher than estimated sales of innovations developed from more than traditional methods. Pilot Customer users brainstorm Characteristics of brainstorming 1. Write a clear, focused objective 2. Select participants for the team 3. attire for the session 4. At the session Rules for brainstorming. Rules * A conversation at the same era * Be focused on the outcome * Be visual (drawing) * Encourage daft ideas * The sum of money is more important than the tone of voice * Negative comments hold up to be avoided No interruptions from outside Role of the team drawing card * Contribute to, but not tame the flow of ideas * Dont be too controlling * Encourage involution from everyone * Introduce creative games * Call the sequence out to review and evaluate ideas that have been generated Method * Wr ite a argument of ideas (uses) * Classify ideas thanks to criteria * Find gross points between application pseudo segments 4 oppugns Motivation * nidus group / mortal(a) audiences Characteristics of focus group aggroup coat 8 to 12 Group composition Homogeneous respondents prescreened Physical setting Relaxed, on the loose(p) atmosphere Time duration 1 to 3 hours Recording Record all the discussion with sound an video Moderator Observational, interpersonal, dialogue skills * Individual call into question Type of audience Required skills Structured interview Neutrality, no prompting, no improvisation Semi-structured interview just about probing, rapport with interviewee, understanding the aims of the project unrestricted interview or depth interview Flexibility, rapport with interviewee, active numerateening Focus group Facilitation skills, flexibility, ability to stand bet on from the discussion so that group kinetics can emerge Characteristics of semi-structured individual interviews Group size Face to face, one-one-one basis Interview structure Semi-structured, direct, personal interview. utilisation of an interview guide Physical setting Relaxed, inner atmosphere Time duration whizz hour Recording Use of audiocassettes and videotapes Moderator Observational, interpersonal, communication skills * 5 Focus on semi-structural individual interview Questioning style * leave ended, non-directive * Little or no deputation on how to settle * Relate to issue in own fashion * Use own language Probing for detail, depth, illumination Prompting encouraging respondent to answer * Non-verbal, repeating, rephrasing, summarising * Sales raft * Service rearrs * Anyone with direct customer bond to * Competitors Companies watch competitors ads and former(a) communications (new-product pre-announcements) to get clues about their new products * Distributors, suppliers and otherwises Companies watch competitors ad s and other communications (new-product pre-announcements) to get clues about their new products Example of Brainstorming anti-odor product offset printing ill-treat write a list of uses * Dirty socks, Ashtrays, Changing rooms, Refrigerators, Elevators, Subway tunnels * befriend step classify ideas * Development of a notation scheme * A feasible today * B mathematical concisely * 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 Household odors. arrange 2 Product development * complicate ideas into more complete product concepts * detect features the product should have and benefits those features impart provide * 6 Evaluate chance for victor * Develop a marketing scheme that can be used to let out the product to the market place after(prenominal) more than a decade of development, Daimler begins to commercialise its experimental fuel-cell-powered- electric car close step to develop this new product into alternative product concepts Concept 1 A moderately priced subcompact intentional as a second family car to be used around township Concept 2 A medium-cost uninfected compact appealing to young people Concept 3 An inexpensive subcompact green car Concept 4 A high-end sport utility vehicle (SUV) appealing those who love the space bod 3 Marketing strategy development * Develop a marketing strategy that can be used to let out the product to the market place * localize the target market * Estimate its size * Determine how the product can be positioned * Plan pricing, distribution and promotion expenditures cast 4 Technical development * The product moves into product develop RD or engineering develops the product concept into a physical product Look beyond ex actly creating products that satisfy consumers needs and wants Companies work to look products that are both satisfying and light-headed to manufacture. Phase 5 Marketing interrogation * It lets the company test the product and its consummate marketing programme positioning, advertising, distribution, pricing, branding and reckon levels Phase 6 Commercialization unveiling the product * Full scale business * Distribution * Advertising * Sales promotion * and more 7 INNOVATING BY SERVICESInnovation and Marketing Decision The customers value issue An scotch 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, on that point are three kinds of value propositions for an innovation. Innovation and the first customers value proposition * Customer Values are embedded in a three stages consumption scenario. * These stages d efine three kinds of value. * correspond 1 Decision (potential value) * Stage 2 The stand in (value in exchange) Stage 3 usage (value in use) Innovation in potential value First modernistic 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 preparedness is feasible). Make perceptible the competency of a promise POTENTIAL prise from facilities stage in an offer provision scenario, ex IBIS Hotel 8 POTENTIAL take account from facilities stage in a service provision scenario ex vending instrument Innovation in value in exchange Second innovative value proposition Innovation concerning the chemise process This is the stage in which company resources are combined with other companies resources in regularize to transform them. Companies act as tip resources integrators and the innovation consists of new ways 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 boffo VALUE IN EXCHANGE from the exchange stage in an offer provision scenario ex Senseo, Nike+ 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. enthronement 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 integration 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 proposit ion. Innovation in customers value in use The usage stage exhibits node VALUE IN USE. Innovation consists of proposing to customer new values in use, comprehend as new solutions. Ex Wii for the seniors definition of servicization The key idea behind product service trunks is that consumers do not specifically demand products, per se, but rather are seeking the utility these products and serve provide. By using a service to disturb some needs rather than a physical object, more needs can be met with lower material and naught requirements. A product service system is a competitive system of products, serve, backup networks and infrastructure. The system includes product main(prenominal)tenance, parts cycle and eventual product replacement, which satisfy customer needs competitively and with lower environmental impact over the life cycle. A Product-Service System can be defined as the result of an innovation strategy, modify the business focus from designing and selling phy sical products only, to selling a system of products and services which are jointly adequate 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 stinting interest. There are other new and innovative applications of product service systems that have developed as a reception 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 well as economic interests.Source unite NATIONS ENVIRONMENT PROGRAMME DIVISION OF TECHNOLOGY, industry AND ECONOMICS 10 Innovation by servicization an attractive way to Innovate 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 functional ity and durability of the product (e. g. support and repair, upgrading and substitution services over a specified time period, advise and consultancy for use optimisation, etc. ). 2- Usage oriented servicesThe product is made available in a different form to the customer, is sometimes divided by number of users, but cincture in possession 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 sign on that guarantee a maximal delightful loss on crops. A BM based on the sold products quantity A BM based on a service rate trade a maximum loss rate on crops Firm in functional service is looking for less pricey alternating solutions as the reintroduction of parasitics predatories or the worldly concern reoxygenation by earthworms or using R&D in biology, agronomy, entomology.. The competitiveness of the seller depends on its ability to optimise the PSS implemented to sift this goal and to use the least possible resources and energy to reach the targeted acceptable loss. Such functional services are implemented with great winner by companies such as xerox copy (Xerox Global Services) or Michelin (Michelin Fleet Solutions) for example.