Importance of innovation in marketing

The concept of businesses receiving recognition for making a “Commitment to Innovation” was first discussed in 1995, during the Wales Regional Technology Plan (RTP) consultation process. The RTP Action Plan, published in 1996, prioritised a culture of innovation for personal and economic success. The need to recognise and reward innovation was highlighted as being vital if the innovation culture was to develop successfully in Wales.

Having been brought up in different parts of the country and traveled extensively, I been fortunate to have been exposed to different types of people, concepts and firms. My learnings from each, whether it be the marutas (a generator powered people carrier in rural Punjab), the chudi wali`s (an organization of over 10,000 women who use an interactive medium to sell chudi`s in the rural parts of Gujarat and Rajasthan), or the direct ЕЕЕЕ., have been fascinating. The one thing I conclude from each of these experiences is that, In order to be successful, today’s companies must become marketing oriented. This is because, only effective marketing will ensure it to separate its business from the competition and then eliminate those competitors from the minds of prospect customers.

The need for Innovation is a product of such a school of thought. Innovation, is the profitable exploitation of new ideas. ItТs a tangible process and the need for an innovate work environment is widely recognised as being one of the key success factors in gaining competitive advantage in the global market place. Firms today relaize that investing in innovation is crucial to business success. For years there has been a fierce debate on the key elements of the correct marketing startegy to Win in the Customer Age. The debates revolved around three solutions: Automate, Innovate, and Collaborate. Over the years, innovation has taken the lead as the key solution. Productive ad accurate Innovation, enables a firm to be proactive in anticipating emerging consumer trends, and thus address them via effective marketing strategies. It allows it to stay Уahead of the pack, the fundamental difference between success and failure. This holds particular significance today, the market place of the 21st century, which is more exciting and unpredictable than ever before.

Innovation has occurred in many aspects and levels in organizations and if studied closely, you will see that most of it takes place as an adjunct to something that exists.Over the decades we have seen firms innovate constantly in their products, business, process and technology. However, the most radical changes has been seen in the filed of marketing. In this paper, I will discuss the main drivers of these changes and a few concepts that have emerged.

The need for customization- success in marketing is not random anymore. Companies and marketers have to ensure that they approach the marketing of their product in a systematic and effective manner. As a result, companyТs methodologies today, are now based in customer-centric research and are tailored to suit specific needs. Innovation has emerged as a key ingredient in ensuring marketing strategies, and the У3D concept (of Define, Develop and Deliver) is extensively used to deliver winning new products, services, brand positioning. The У3D, principle is outlined as : DEFINE- Vision, Strategy, Objectives, Targets, DEVELOP-Ideas, Activities, Concepts and Messages, DELIVER- Products, Processes, Programs and Training.

A УGreener market place- In todayТs market place, there is a huge promise for products and services that are targeted at individuals with lifestyle concerns. This is because, globally there are a growing number of consumers who are and will demand non-toxic products that are recyclable and environmentally friendly. This new paradigm has forced corporateТs, to look for holistic solutions in pursuit to ensure zero, or minimal environmental impact from their operations and products. As environmentalism emerges as a social value, infusion of innovation and sustainability in all aspects of its operations has emerged as an ultimate challenge for corporate. Marketing is one such aspect, which has lead the way. A good example is the change in the objectives of marketing. Today, the ultimate goal of marketing is to establish two bottom lines, one for profit and the other to reflect their contribution to society. This has lead to a radical change in the thinking behind product positioning. Today, itТs considered more profitable for a brand, to be positioned as a cradle to crave” solution, rather than the traditional “cradle to grave approach. By doing so, it is able to reify abstract environmental concepts such as recycling and reuse to ensure customer loyalty and financial gains.
Boom of the Service industry: The Cluster provides worldwide coverage of 12 major industries covering the IT services and technologies that comprise these vertical business solutions. This research enables clients to understand the rapidly changing vertical market and IT market dynamics. It also identifies new IT opportunities and helps develop targeted customer segmentation and effective go-to-market strategies.

This information enables clients to better differentiate themselves, develop expansion strategies, innovate service content and packaging strategies, and more effectively sell, market, and deliver IT solutions within their targeted vertical sectors.

Winning in the Customer Age

The emergence of the Internet: Conceptualized in the 1950Тs, its grown significantly over the last 2 decades. A revolutionary concept, has accelerated a shift in power to customers. This technology has made it far easier for customers to shop around, and for competitors to reach them through electronic marketing programs. Since customers are now offered a blizzard of choices that change faster than the weather in New Delhi, the focus has shifted to the relationship as a differentiator. In other words, today its not the product or service an enterprise provides, but how it treats its customers that matters. This has lead to the growth of the multi-billion dollar industry of Customer Relationship Management (CRM) solutions. Marketing innovation at its best, the industry provides an enterprise with the software to support, indirect channels, and multiple modes of communication. ItТs in simple terms, a business strategy to get, grow, and retain the right customer relationships

A second approach is to create new methods of interacting with customers. Give sales people tools to make different and more effective sales calls, instead of the same sales calls done more efficiently. Use the Internet to enable customers to sell and service themselves online, instead of using traditional sales and service organizations. Or use Web-based applications to help partners be more effective in their roles as value-added intermediaries, instead of cutting them out of the distribution channel.

Yet these new, innovative methods create more complexity for an enterprise to manage. Customers can choose direct and indirect channels and a variety of communication methods ranging from face-to-face, to telephone, to email, to the Web. Sadly, all too often the ‘new way’ is focused on what the enterprise wants, leaving the customer to ask: ‘What’s in it for me?’ If it doesn’t deliver customer value, innovation is not a winning strategy either.

In addition, this pure twentieth-century technology and its emphasis on speed and versatility, has forced a change in the rules of competition. Internet marketing therefore, is a rapidly changing field. Something that works today may not work in the future. If you don’t know about the change, you could go a long time with declining visits to your website and declining revenues. Internet marketing changes very quickly and no innovation mean no progress. That is why; innovation in marketing strategies is used extensively in setting trends and not just following them.

The Уfast moving technology characteristic of the internet, not only demands the need of innovation in marketing strategies, it also requires firms to concentrate on the speed and efficiency of the diffusion of innovation.

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