Marketing Mix Notes
The key is not just the invention but the capability to innovate by bringing the product successfully to the market. An important point to remember is that focus of innovation should be providing new solutions which better meet customer needs. Innovative solutions often do not require major breakthroughs in technology. For example Direct Line became the leader in car insurance by removing the need for brokers through its telemarketing campaigns. Or Dell became the profitable computer company just by becoming the first to market computers directly to its consumers.
Four brand categories of new products: 1. Product replacement 2. Additions to existing lines 3. New product lines 4. New to the world products
2 Steps for successful innovations are
First Creating and nurturing an innovative culture, which includes: 1. Reward success heavily 2. Tolerate failure 3. Give time off or turn a blind eye to people working on pet projects 4. Be accessible 5. Resist automatic nay saying 6. Back word with resources 7. Clear messages about the role and importance of innovation.
Second, Organizing effectively for new product developments, which includes: 1. Project teams which involve bringing together of staff from such areas as R and D, engineering , manufacturing, finance and market to work on a new product development. Specialized skills are combined to form an effective team to develop the new product concept. These teams are sometimes called skunkworks when they are put together in a location physically separate from other employees to work on a project free from bureaucratic intrusion. Its advantages include the fostering of a group identity and common purpose, fast decision-making, and the lowering of bureaucratic barriers. An organizational change that has reduced product development cycle time is the bringing together of design and manufacturing engineers to work as a team-simultaneous engineering. 2.
Four brand categories of new products: 1. Product replacement 2. Additions to existing lines 3. New product lines 4. New to the world products
2 Steps for successful innovations are
First Creating and nurturing an innovative culture, which includes: 1. Reward success heavily 2. Tolerate failure 3. Give time off or turn a blind eye to people working on pet projects 4. Be accessible 5. Resist automatic nay saying 6. Back word with resources 7. Clear messages about the role and importance of innovation.
Second, Organizing effectively for new product developments, which includes: 1. Project teams which involve bringing together of staff from such areas as R and D, engineering , manufacturing, finance and market to work on a new product development. Specialized skills are combined to form an effective team to develop the new product concept. These teams are sometimes called skunkworks when they are put together in a location physically separate from other employees to work on a project free from bureaucratic intrusion. Its advantages include the fostering of a group identity and common purpose, fast decision-making, and the lowering of bureaucratic barriers. An organizational change that has reduced product development cycle time is the bringing together of design and manufacturing engineers to work as a team-simultaneous engineering. 2.