Changes in the world create the conditions for innovation. The goal of innovative marketing is to catch these changes in time. It includes the marketing of innovative goods and services, innovations in management strategies, the formation of its new system. What will be the main tasks assigned to this area of business depends on the stage of the innovation process.
However, it is a mistake to believe that the function of innovation marketing is only to promote a completely new product to the market. Based on the research of Peter Doyle, a professor at the University of Warwick in the UK, only 2 out of 10 innovations discussed by the media are such. The other eight are fresh insights into the use of established products, product entry into newer segments or new business methods, and changes in the service industry. In this article, we will look at the main features of this business area.
Types of marketing innovations
- New old goods. This innovation includes new methods of using products known to the consumer.
- New markets. Search for a new group of buyers.
- New business strategies. This type of innovation involves finding new ways to supply old products. In the modern world, they have become the main ground for creating innovative marketing ideas.
Subjects and objects of the innovation process
| Category name | Subjects | Their tasks and functions |
| Main Subject | Innovative company | In the early stages - growth, in the later stages - stable development and expansion |
| Idea Generators |
|
Innovations are created on their basis |
| Subjects managing the process |
|
Manage innovation projects |
| Funding entities |
|
Depends on the stage of commercialization (the process of turning innovation into a marketable good) |
|
Innovation infrastructure entities |
|
Help create and promote innovative projects |
| Consulting firms | Research the market and competitors' offers, solve legal issues, create development tactics | |
| Subjects of state and public control |
|
Stabilize the innovation process, defend the interests of innovation workers |
| Consumers of innovative goods |
|
Products are made directly for them |
The objects of the innovation marketing process include:
- State and public documents that control innovation activity, namely laws, instructions, regulations.
- Proofs of intellectual property: certificates of authorship, patents, etc.
- Licenses for innovative goods, certificates.
- Innovative projects.
- Shares of innovative companies and shares.
- Innovative workmanship items.
- Agreements and transactions between the subjects of the innovation process.
Marketing tasks at different stages of the innovation process
The foundations of innovation marketing are based on tasks. What they will be depends on the stage of the innovation process:
- Search for newideas. Marketers conduct research, analyzing the situation in the market in order to find a "market niche". The results of the research become the soil of the innovation marketing strategy.
- Development. The most successful ideas are selected to create "trial samples". The current market trends and its progressive directions are being studied. "Prototype" goes to market for error detection and testing.
- Introduction. It is important to make information about the innovation widely available. Also, marketers need to set a pricing policy, form consumer preferences and develop a satisfactory marketing scheme.
- Height. The circle of consumers is becoming wider, competitors are introducing innovations, accelerating the development of the market. It is necessary to conduct a large-scale advertising campaign to obtain maximum demand for the product, since the company is no longer a monopoly.
- The maturity stage is characterized by a stable sales volume, the size of which depends on the priorities of buyers. The new already ceases to be new, the innovation becomes the old product. The task of marketing is to develop and implement a plan to preserve the corporation's share of the market.
- The innovation process ends with a decline. To avoid unnecessary expenses for the promotion of an uncompetitive product, it is necessary to withdraw it from the market in time and replace it with a more perfect innovation. Already at this stage, you need to look for ideas for the next innovative projects so that the process starts anew.
Types of marketinginnovation. Strategic Marketing
This type of marketing is aimed at analyzing the economic situation in the market in order to develop market segmentation, demand development and consumer behavior modeling.
The work of the corporation is aimed at capturing the market, increasing and deepening its segmentation, at forming its buyer (that is, it is necessary not only to take into account the desires of the modern consumer, but also to predict what will be relevant in the future).
The main feature of marketing innovations of a strategic type is the close contact of marketers and sociologists of the company with customers. They conduct surveys by phone and all kinds of questionnaires.
It is not enough just to diversify the product range, you also need to develop a strategy for the aging of your own products for the subsequent introduction of innovations that will replace or improve them.
Operational marketing
Operational marketing is a type (method) of innovation marketing that develops specific forms of implementation of the previously chosen strategy. It is aimed at a significant increase in sales, expansion of the sales market and preservation of the company's image. In addition, the tasks of operational marketing include:
- creating a detailed written promotional plan to be used by employees of the firm working in the field of marketing;
- calculation of upcoming expenses, including the cost of operational marketing within the total budget of the company;
- regulation of marketingfirm performance: overseeing the progress of annual plans, monitoring profitability and strategic control.
Innovative marketing management
The whole process of innovation marketing management can be divided into four basic blocks. First of all, forecasting and analysis of the possibilities of market innovations are carried out. This process includes specifying the goals of the analysis, conducting research in the field of marketing, studying the information system and novelties of scientific and technological progress. The following are the steps:
- The first block can be called analytical. The recommendations developed in it dictate the decision-making in all other blocks.
- In the second block, the target market is selected. It is important to take into account market segmentation, analyze the attractiveness of segments and determine the place of your product among competitors in the perception of the buyer.
- The development of a marketing mix (conditionally the third block) includes an analysis of the stages of the innovation process, the design of an innovative product, the choice of a market strategy and pricing policy, and the establishment of communication links.
- The fourth block - the final stage of the organization of innovative marketing - is the practical implementation of marketing activities. This stage includes the development of a marketing plan, the creation of an annual marketing budget, and an evaluation of the implementation of the plan.
Innovative Financial Marketing
In financeinnovation is the economic embodiment of a new banking product or a significant change in an existing one. Banking innovation can also be called the introduction of a new marketing, technological, administrative way of doing business. The formation of innovative credit and banking services, rivalry in the field of investments and loans shows the development of commodity-money relations in society. Financial innovation marketing consists of a strategic and an operational component. This direction is always given special attention. Bank marketing of innovations extends to the entire process of establishing the value of financial innovation for the consumer. It all starts with the search for ideas and ends with their implementation in certain groups of the financial market. The marketing functions of financial innovations are performed through the study of new social and economic processes, the formation of new non-standard ways of thinking, which are being introduced into all areas of the financial and information space. The practical tasks of banking innovative marketing are to attract new ideas, establish and expand communications, organize the relationship of participants in the innovation process.
Specificity of innovative product and innovation market
Obviously, an innovative product is a kind of innovation, but it is worth paying attention to its other characteristics, namely:
- This product is unique, but it also creates a risk of low sales, which is difficult to predict before the product goes to market.
- Innovative product has its author, it is industrial or intellectual property. Therefore, sales will directly depend on the knowledge and talent of the creator.
- Such products may not be immediately correctly understood and accepted by the consumer, at first he may completely reject it. But it is possible that later the demand for the product will grow, as innovations are able to form new customer needs.
The characteristic features of the innovation market include the following:
- There is a psychological barrier between customer perception and product innovation.
- The subjects of innovation marketing (for example, firms) must perform tasks that are unusual for them due to the imperfection of the innovation market system.
- Most buyers are professionals, so courtesy and competence in dealing with them is especially important.
- It is not typical for innovative marketplaces to have a permanent location and distribution channels.
- The innovation market is global.
- The market is operated by information, administrative and financial infrastructure.
- The innovation market is characterized by a wide range of products and high competition.
Features of innovation market segmentation
The innovation market, like any other, is divided into segments. The main principles of segmenting the innovative market include:
- functional;
- product industry;
- geographic;
- disciplinary;
- problematic.
The functional principle implies the distribution of consumers according to their functions. This principle is broader than the product-industry one, since the company is interested in several innovative projects aimed at one function. For example, instead of developing a specific project for the additional equipment of cars, you can take several innovative projects related to the transportation of passengers.
The product-industry principle is suitable for diversified firms, as well as for enterprises that produce innovative products for a wide range of applications. Two spheres can be outlined: production and non-production, each of them has its own industries and sub-sectors.
Geographically, the market is divided into regions, each of which has different requirements for innovative products. First of all, such distribution is necessary in the production of scientific and technical products, the region will greatly influence the needs of the buyer in this area, especially when it comes to the final product. Also, when dividing geographically, it is important to pay attention to both the domestic and international markets.
The disciplinary principle is based on the fact that consumers of innovative products are interested in the same scientific discipline, for example, biology, mathematics, physics. Consumers in this distribution may perform different functions and be located in different regions.
The problematic principle arose due to the fact that global scientific problems (for example, artificial intelligence) appear at the intersection of scientific disciplines. They havecross-industry and cross-functional character.
Consumer perception of innovative product
- Primary awareness. The buyer has heard about the innovation, but his knowledge of it is superficial.
- Product recognition. The consumer recognizes the product, he is interested in it. You can search for additional information about the new product.
- Identification of innovation. The buyer matches the product to his needs.
- Assessing opportunities to try products. The consumer decides to test the novelty.
- Testing the innovation by the buyer, getting more information about it.
- The consumer purchases or invests in creating innovation.
