INNOVATIVE MANAGEMENT PRACTICES RELATED TO MARKETING:

INTRODUCTION:
Innovation in Marketing is a unique collection of empirical material describing both systems innovation and the launch of new products. This ranges from the development of new high tech items such as the Organizers from Psion, to the transfer of a major brand such as Virgin Direct to a new market. Based on this the authors have developed a clear analytical model for managing innovation with a marketing perspective. The key themes that structure the book are: Marketing and innovation - the model, innovation and strategy, marketing strategies and shareholder value, best practice in innovation management, effectiveness in innovation. Marketers in many industries know that innovation through new product development is vital to remain competitive. But product decisions are not the only areas affected by new developments. As weve discussed throughout the Principles of Marketing Tutorials, innovation can affect almost all marketing areas. Below is a sampling of how innovation has affected different marketing areas:

Marketing Area Marketing Research

Effect of Innovation Creates new ways to conduct research including more sophisticated methods for monitoring and tracking customer behavior and analyzing data. Allows for extreme target marketing where marketing-toperson is replacing mass marketing. For customer service, technology makes it easier to manage relationships and allows for rapid response to customers needs. Creates new digital products/services. Incorporation of

Targeting Markets Product

innovation into existing product/service enhances value by offering improved quality, features & reliability at a lower price. New techniques allow better matching of promotion to Promotion customer activity and individualized promotion. Makes it easier for sellers to offer product suggestions and promotional tie-ins. Creates new channels for distribution and transaction (e.g., electronic commerce) that include making it easier Distribution for buyers to place orders. Allows more control over inventory management and closer monitoring of product shipment Pricing Enables the use of dynamic pricing methods.

The above table would detail about the derivation of effects of innovation in different marketing areas. Marketing Area: Marketing Area, place a vital role in innovation of new product. Because Market is the place where it decide the trend to every competitor. Communication plays vital role in Global Competitive.

Communication is defined and shared between living organisms. Communication requires a sender, a message, and an intended recipient, although the receiver need not be present or aware of the sender's intent to communicate at the time of communication; thus communication can occur across vast distances in time and space. Communication requires that the communicating parties share an area of communicative commonality. The communication process is complete once the receiver has understood the sender.

The role of internal communication needs to shift up to the level of employee engagement. There are four main milestones on the road to behavior modification (1) create awareness, (2) change perceptions, (3) obtain buy-in, and (4) change behaviors. The first two fall under what is today practiced as internal communications sending out the content and sharing it. The latter two fall under the optimal approach to employee engagement modifying behaviors within the organization and inculcating a culture of communication. This is the difference between asking staff members if they know what the value statement is, and asking them what behaviors they must demonstrate to deliver it. The culture must also enforce communication at a business level staff should be measured on their communication as a key performance area and not be allowed to say I didnt have the time. Its time to stamp out the paternalistic culture we have become so comfortable with.

Marketing Area, place a vital role in innovation of new product. Because Market is the place where it decide the trend to every competitor.

Competitors
For many marketers the final external force is the one most relevant to immediate day-to-day decision making. While the other external forces weve discussed tend to be examined periodically (or in some cases rarely), monitoring competitor activity is often a daily undertaking. Monitoring competitors can serve several goals:

Competitors as Threats The most obvious reason to monitor the competition is to see how they are responding in the same markets in which the marketer operates. Many larger companies recognize the importance of keeping tabs on their competition and create specific positions or even departments that focus on gathering and analyzing competitor data. These competitive intelligence programs mainly employ high-tech methods, and principally the Internet, to locate information about competitors such as news reports, government filings (e.g., patents, stock reports) and changes to competitors websites. Even small sized marketers can more easily track competitor actions. For instance, there are several news and information services that will alert a marketer (usually via email) when a competitor is mentioned in the news.

Competitors

as

Partners

While

many

may

consider

competitors as representing the enemy, there are situations where competitors can present opportunities. This happens often to large companies that offer a broad product line serving many target markets. In some markets a company may compete aggressively with another firm but in other markets both firms may be lagging and it may make more sense for both to work together. This can be seen in the computer industry where Apple Inc., which for many years viewed computers, built with Intel processors as competitors since these run Microsoft operating systems, has now accepted Intel processors and is building computers powered by this chip.

Competitors of Tomorrow In many industries and, in particular, those in technology-focused industries where there is heavy emphasis on research and development, the most dangerous competitors are the ones that have yet to emerge. Because technology-dependent industries, such as computers,

consumer electronic and pharmaceuticals, rely heavily on innovative new products, serious competitors can emerge quickly from what seems to be out of nowhere. For instance, the evolution of online video and its impact on the news and entertainment industry grew very rapidly with the introduction of online video services (e.g., YouTube) which was previously an unknown project developed in a garage. However, in less than 18 months it came to dominate the online video industry.