Elements Of Marketing Innovation

Marketing innovation
Marketing innovation is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. Marketing innovations are aimed at better addressing customer needs, opening up new markets, or newly positioning a firm’s product on the market, with the objective of increasing the firm’s sales. The distinguishing feature of a marketing innovation compared to other changes in a firm’s marketing instruments is the implementation of a marketing method not previously used by the firm. It must be part of a new marketing concept or strategy that represents a significant departure from the firm’s existing marketing methods. The new marketing method

For example, the first use of a significantly different media or technique – such as product placement in movies or television programmes, or the use of celebrity endorsements – is a marketing innovation. Another example is branding, such as the development and introduction of a fundamentally new brand symbol (as distinguished from a regular update of the brand’s appearance) which is intended to position the firm’s product on a new market or give the product a new image. The introduction of a personalised information system, e.g. obtained from loyalty cards, to tailor the presentation of products to the specific needs of individual customers can also be considered a marketing innovation. Innovations in pricing involve the use of new pricing strategies to market the firm’s goods or services. Examples are the first use of a new method for varying the price of a good or service according to demand (e.g. when demand is low, the price is low) or the introduction of a new method which allows customers to choose desired product specifications on the firm’s Web site and then see the price for the specified product. New pricing methods whose sole purpose is to differentiate prices by customer segments are not considered innovations. Seasonal, regular and other routine changes in marketing instruments are generally not marketing innovations. For such changes to be

Organisational innovations can be intended to increase a firm’s performance by reducing administrative costs or transaction costs, improving workplace satisfaction (and thus labour productivity), gaining access to non-tradable assets (such as non-codified external knowledge) or reducing costs of supplies. The distinguishing features of an organisational innovation compared to other organisational changes in a firm is the implementation of an organisational method (in business practices, workplace organisation or external relations) that has not been used before in the firm and is the result of strategic decisions taken by management. Organisational innovations in business practices involve the implementation of new methods for organising routines and procedures for the conduct of work. These include, for example, the implementation of new practices to improve learning and knowledge sharing within the firm. An example is the first implementation of practices for codifying knowledge, e.g. establishing databases of best practices, lessons and other knowledge, so that they are more easily accessible to others. Another example is the first implementation of practices for employee development and improving worker retention, such as education and training systems. Other examples are the first introduction of management