Post on 30-Dec-2015
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2007 Edition
Vitale and Giglierano
Chapter 9Innovation, Branding, and Competitiveness
Prepared by John T. Drea, Western Illinois University
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Opportunity SeekingOpportunity Seeking
Taking Controlled Risks
Taking Controlled Risks
ProactivityProactivity
InnovationInnovation
An Entrepreneurial
Approach to Marketing Has
Four Key Dimensions
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Marketing Entrepreneurially
InnovationInnovationis the creation of something new and commercially useful.
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Marketing Entrepreneurially
InnovationInnovationis the creation of something new and commercially useful.
ProactivityProactivity
is doing something before others do it (taking the lead in a market or new development),
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Marketing Entrepreneurially
InnovationInnovationis the creation of something new and commercially useful.
ProactivityProactivity
is doing something before others do it (taking the lead in a market or new development).
ControlledRisk TakingControlled
Risk Taking
is knowing what the risks really are, taking moderate (survivable) risks, and controlling the amount of risk.
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Marketing Entrepreneurially
InnovationInnovationis the creation of something new and commercially useful.
ProactivityProactivity
is doing something before others do it (taking the lead in a market or new development).
ControlledRisk TakingControlled
Risk Taking
is knowing what the risks really are, taking moderate (survivable) risks, and controlling the amount of risk.
Opportunity SeekingOpportunity Seeking is seeking out commercially-viable ventures.
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Entrepreneurial Progression
Opportunity recognition Idea generation
Business idea development
Business planning
Obtaining resources
Experimentaland exploration
Launch
Feedback
Revise
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Interaction of Types of Innovation
Radicalinnovation
Incrementalinnovation
Sustaining innovation Disruptive innovation
Most common combinations of innovation types in shaded boxes
Increasing role of te
chnology
Increasing uncertainty
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Creating an Environment for Success in Innovation
A company must adopt a predisposition for trying new things. The company must accommodate and assist employees who innovate, even if they fail. Failure in innovation is still positive as long as
•something valuable is learned in the process, &•it does not kill the company.
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Incremental and Radical Innovations
IncrementalInnovations
RadicalInnovations
Take the existing product offering and make small-step improvements.
Producing large changes in the functions and
performance of an offering. This is sometimes called a
breakthrough innovation.
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Disruptive Innovations
Introducing offerings based on technology that is substantially different from the dominant technologies in the market.
1. It is difficult for market-share-focused organizations to pursue disruptive technologies.
2. Disruptive technology does not necessarily equal radical innovation.
3. A business that intends to redefine an industry usually needs disruptive innovation.
Key Points
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What Does Pursuing Disruptive Technologies Mean for Marketing?
1. Separate the project using disruptive innovation from the existing company with its established customers and business model.
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What Does Pursuing Disruptive Technologies Mean for Marketing?
1. Separate the project using disruptive innovation from the existing company with its established customers and business model.
2. Address the new business with a SBU appropriate in size for the small market size of the initial opportunity.
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What Does Pursuing Disruptive Technologies Mean for Marketing?
1. Separate the project using disruptive innovation from the existing company with its established customers and business model.
2. Address the new business with a SBU appropriate in size for the small market size of the initial opportunity.
3. Use an exploratory approach to find the right market and the right way to address the market.
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What Does Pursuing Disruptive Technologies Mean for Marketing?
1. Separate the project using disruptive innovation from the existing company with its established customers and business model.
2. Address the new business with a SBU appropriate in size for the small market size of the initial opportunity.
3. Use an exploratory approach to find the right market and the right way to address the market.
4. Use processes/decision-making rules appropriate tothe new business model.
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What Does Pursuing Disruptive Technologies Mean for Marketing?
1. Separate the project using disruptive innovation from the existing company with its established customers and business model.
2. Address the new business with a SBU appropriate in size for the small market size of the initial opportunity.
3. Use an exploratory approach to find the right market and the right way to address the market.
4. Use processes/decision-making rules appropriate tothe new business model.
5. Develop the markets that want the offering.
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Sustaining Innovations
Innovations that make somewhat predictable improvements to existing technologies.
Most innovations are sustaining innovations
1. Radical sustaining innovation: increases performance dramatically but in the same technology direction.
2. Incremental sustaining innovation: small changes along predictable vectors.
3. Customers can provide an idea of what they want and how it will be used.
4. The periodic marketing plan can be used as a framework for instituting innovation in the offering.
Key Points
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Practical Aspects of Accomplishing Innovation
Obtaining theRight KindsOf People
Impediments and Incentives
Directing theRight Activities
Match the team members to the type of innovation being pursued.
A current trend is the use of collaborators and partners in innovation efforts.
Holding managers accountable to justify projects without data, and over-punishing failure.
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Making a Manufacturer’s Brand a Standard
Here are some possibilities:
BeingFirst
with NewTechnology
Innovatingthe Need,
not theTechnology
Being Bestwith
Service
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Defending the Brand
Defending the Brand
Market upMarket up
Buildrelationships with mgmt. above the influencers
Buildrelationships
with technical and lab
personnel
Market Market downdown
Market sidewaysMarket sideways
Success w/ one customerleads to others.
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Creating Strong Brands
• Brand strength– Brand awareness
• Is mere name awareness (simple awareness) enough?
– Quality of the offering• It is perceived quality in the eyes of the
customer.
– Customer positive beliefs – the associations that are linked to the brand.
• Associations are based on perceptions and the management of perceptions