Marketing & Innovation

tradeing & re raw(a)ing Beca intention the spirit of origin is to create a node, the business first measuring has twoand only twobasic functions securities industry and induction. Marketing and variety produce results all the oddment atomic number 18 costs. Peter Drucker (The Father of Management Theory) foundation garment Marketing is the activity, set of institutions, and servees for creating, communicating, delivering, and exchanging flings that have prise for nodes, clients, partners, and guild at large. Ameri groundwork Marketing Association 2007) An innovation is the instruction execution of a modernistic or significantly improve return ( veracious or assistance), or process, a unseasoned marketing method, or a smart organisational method in business practices, work organization or external relations. (OECD 2005) Four types of innovations ar distinguished intersection innovations, process innovations, marketing innovations and organisational innov ations. (OECD 2005) * A point of intersection (service) innovation is the introduction of a good or service that is parvenue or significantly improved with respect to its characteristics or intend uses.This involves significant improvements in technical specifications, components and reals, incorporated softw ar, user friendliness or other functional characteristics. * A process innovation is the implementation of a bleakfangled or significantly improved harvestion or delivery method. This includes significant forms in techniques, equipment and/or software. * An organisational 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 proceeds design or packaging, addition placement, ingathering progress or pricing. The OCEDs definition is too shrink it reduces the scope of marketin g by separating between marketing, overlap 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 snapings that have jimmy for clients, clients, partners, and society at large * cosmos in marketing could be related to * The creation (Iphone), * The colloquy (Web2. 0), * The delivery (Internet), * Or exchanging (Michelin) * offerings that have take to be 2 Main objective Under bear outing 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 applied science Low High Low Continuous innovation(cordless phone) Market breakthroughts (parabolic skis) High Technology breakthroughts (passage from video players to DVD player) pedestal innovation(cell phone) basis co ntinuum Continuous innovation * Modification to an alert output that does non require a change in attainment * Improvement of an live product with out(p) 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 room we live * Product innovation which break the rules and the norms * early days consumption behaviors and use * Technology Example share documents on Internet, D induceloading musics, E-business and virtual stores, Free software, Hybrid cars in the alto buzz offher product learning process 3 frame 1 Idea Generation Sources of new ideas * upcountry idea sources * Formal research and breakment * Intrapreneurial programmes * international idea sources * guests * cowcatcher customers Pilot customers methodsThe estimated annual gross revenue of new products developed found on ideas generated by pilot customers are eight times high than estimated sales of innovations developed from more than traditional methods. Pilot Customer users think Characteristics of brainstorming 1. spell out a clear, rivet objective 2. Select participants for the team 3. tog out for the session 4. At the session Rules for brainstorming. Rules * A parley at the same time * Be concentered on the subject * Be visual (drawing) * abet crazy ideas * The quantity is more important than the fibre * Negative comments have to be avoided No interruptions from extracurricular Role of the team leader * Contri merelye to, except not inhibit the flow of ideas * Dont be too controlling * Encourage partnership from everyone * Introduce creative games * Call the time out to review and evaluate ideas that have been generated Method * Write a list of ideas (uses) * Classify ideas thanks to criteria * fall out common points between application pseudo segments 4 Interviews Motivation * Focus group / individual questions Characteristics of charge group Group sizing 8 to 12 Group composition Homogeneous respondents prescreened Physical linguistic context Relaxed, informal atmosphere Time duration 1 to 3 hours Recording Record all the watchword with sound an video Moderator Observational, inter ain, communication skills * Individual reference Type of interview Required skills Structured interview Neutrality, no prompting, no improvisation Semi-structured interview or so probing, rapport with interviewee, understanding the aims of the project Open-ended interview or depth interview Flexibility, rapport with interviewee, agile listening Focus group Facilitation skills, flexibility, ability to stand back 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. Use of an interview gu ide Physical desktop Relaxed, informal atmosphere Time duration peerless hour Recording Use of audiocassettes and videotapes Moderator Observational, interpersonal, communication skills * 5 Focus on semi-structural individual interview inquiring style * Open ended, non-directive * Little or no direction on how to answer * Relate to base in own way * Use own language Probing for detail, depth, clarification Prompting promote respondent to answer * Non-verbal, repeating, rephrasing, summarising * Salespeople * Service 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 * Distri only whenors, 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 step write a list of uses * Dirty socks, Ashtrays , Changing rooms, Refrigerators, Elevators, Subway tunnels * secondly step classify ideas * Development of a distinction transcription * A Possible today * B possible soon * C difficult and gaga * 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 globe places Types of customers Chemicalplants Places Household odors. configuration 2 Product development * Expand ideas into more complete product inventions * hear features the product should have and benefits those features will provide * 6 Evaluate chance for success * Develop a marketing system that can be utilize to introduce the product to the market place aft(pre noun phrase) more than a decade of development, Daimler begins to commercialize its data-based fuel-cell-powered- electric car Next step to develop this new produ ct into alternative product concepts ideal 1 A moderately priced subcompact car designed as a second family car to be used around town Concept 2 A medium-cost sporty compact appealing to young people Concept 3 An inexpensive subcompact green car Concept 4 A high-end sport utility vehicle (SUV) appealing those who bed the space manikin 3 Marketing outline development * Develop a marketing strategy that can be used to introduce the product to the market place * Identify the target 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 satisfy consumers needs and wants Companies work to make products that are both satisfying and easy to manufacture. Phase 5 Marketing Test * It lets the company streak the product and its en tire marketing programme positioning, advertising, distribution, pricing, branding and budget levels Phase 6 Commercialization soak up the product * Full scale production * dispersal * Advertising * Sales promotion * and more 7 INNOVATING BY SERVICESInnovation and Marketing Decision The customers determine ignore An economic opportunity exists for an innovation when a new value prompting to customer is possible Agreeing the PSS bidding (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 infix in a three phase angles consumption scenario. * These stages confine three kinds of value. * demonstrate 1 Decision ( electromotive force value) * Stage 2 The central (value in exchange) Stage 3 use of goods and services (value in use) Innovation in potential value First innovative value proposition Inno vation concerning the facilities The facilities include all company resources employees, know-how, technology, nominal goods and other facilities that must be accessible (before offer provision is feasible). Make perceptible the strength of a promise potential difference think of from facilities stage in an offer provision scenario, ex IBIS Hotel 8 POTENTIAL VALUE from facilities stage in a service provision scenario ex vending machine Innovation in value in exchange morsel innovative value proposition Innovation concerning the regeneration process This is the stage in which company resources are combined with other companies resources in order to substitute them. Companies act as prime 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 successful VALUE IN EXCHANGE from the exchange stage in an offer provision scenario ex Sens eo, Nike+ iphone app This transformation stage can also exhibit innovation concerning node VALUE in EXCHANGE.Offer provision can include a transformation of customer resources in cost 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 every 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 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, sensed as new solutions. Ex Wii for the seniors Definition of ser vicization The differentiate idea behind product service systems is that consumers do not specifically demand products, per se, but kind of are seeking the utility these products and services provide. By using a service to meet most needs quite a than a physical object, more needs can be met with rase material and energy requirements. A product service system is a competitive system of products, services, supporting networks and infrastructure. The system includes product maintenance, parts recycling 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, shifting the business focus from designing and selling physical products only, to selling a system of products and services which are jointly fit of fulfilling specific client demands. Meeting consumers needs with a mix of products and services is not a new concept. Hou se 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 well as economic interests.Source UNITED NATIONS purlieu PROGRAMME DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS 10 Innovation by servicization an attractive way to put in on the markets Three ways to develop innovation by servicization 1- Product oriented services Provided to increase or optimize the product life cycle, these subsidiary 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, advise and consultancy for use optimisation, etcetera ). 2- Usage oriented servicesThe product is made forthcoming in a different form to the customer, is sometimes shared by number of users, but sash 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 communion 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 trafficker 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 declaration that guarantee a maximal acceptable impairment on crops. A BM based on the sold products quantity A BM based on a service rate denounce a maximum loss rate on crops Firm in functional service is tone for less costly alternating solutions as the reintrodu ction 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 implemented to wee-wee this cultivation and to use the least possible resources and energy to reach the targeted acceptable loss. Such functional services are implemented with great success by companies such as Xerox (Xerox Global Services) or Michelin (Michelin exit Solutions) for example.