Innovation marketing: features, methods and types

Changes in the world create the conditions for the emergence of innovation. The goal of innovative marketing is to catch these changes on 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 marketing innovation is only to market a completely new product. Based on the research of Peter Doyle, a professor at British University of Warwick, only 2 out of 10 innovations discussed by the media are such. The remaining eight are a fresh look at the use of already known products, the release of goods to the latest segments or new methods of entrepreneurial activity and changes in the service sector. In this article we will consider the main features of this area of ​​business.

Types of Marketing Innovations

1. New old goods. This innovation includes new methods of using well-known consumer products.
2. New markets. Search for a new group of customers.
3. New business strategies. This type of innovation involves finding new ways to supply old products. In the modern world, they have become the main soil for creating innovative marketing ideas .

Subjects and objects of the innovation process

The objects of the innovation marketing process include:

1. State and public documents that control innovation, namely, laws, instructions, regulations.
2. Proofs of intellectual property: certificates of authorship, patents, etc.
3. Licenses for innovative products, certificates.
4. Innovative projects.
5. Shares of innovative companies and stocks.
6. Objects of innovative manufacturing.
7. Arrangements and transactions between the subjects of the innovation process.

Marketing tasks at different stages of the innovation process

The basics of marketing innovation are built on tasks. What they will depend on the stage of the innovation process:

1. Search for new ideas. Marketers conduct research by analyzing the market situation in order to search for a "market niche." Research results become the foundation of innovation marketing strategies.
2. Development. The most successful ideas are selected to create "test samples." The current market trends and its progressive directions are studied. A “test sample” is being marketed for error detection and testing.
3. Implementation. It is important to make information about innovation widely available. Also, marketers need to set a pricing policy, form consumer preferences and develop a satisfactory sales scheme.
4. Height. The circle of consumers becomes wider, competitors introduce innovations, accelerating market development. It is necessary to carry out a large-scale advertising campaign in order to obtain maximum demand for the product, because the company is no longer a monopoly.
5. The maturity stage is characterized by a stable sales volume, the size of which depends on the priorities of customers. New is no longer new, innovation is becoming an old product. The task of marketing is to develop and implement a plan to preserve the corporation’s market share.
6. The innovation process ends with a downturn. In order to avoid unnecessary expenses for promoting a non-competitive product, it is necessary to remove 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 again.
   

Types of marketing innovation. Strategic marketing

This type of marketing is aimed at analyzing the economic situation in the market with the aim of developing market segmentation, developing demand and modeling consumer behavior.

The work of the corporation is aimed at taking the market, increasing and deepening its segmentation, at shaping its customer (i.e., 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 strategic type innovation marketing is the close contact of the company's marketers and sociologists with customers. They conduct surveys over the phone and all kinds of questionnaires.

It’s not enough just to diversify the assortment of products; you also need to develop a strategy for aging your own products for the subsequent introduction of innovations that will replace or improve it.

Operational marketing

Operational marketing is a type (method) of marketing innovation, which is engaged in the development of specific forms of embodiment of the chosen early strategy. It aims to significantly increase sales, expand the market and maintain the image of the enterprise. In addition to the tasks of operational marketing include:

• creating a detailed written plan for the promotion of goods, which will be used by employees of the company working in the field of marketing;
• calculation of future expenses, including operational marketing costs within the total budget of the company;
• regulation of the marketing work of the company: monitoring the progress of annual plans, profitability control and strategic control.

Innovation marketing management

The whole process of innovation marketing management can be divided into four basic blocks. First of all, forecasting and analysis of market innovation opportunities is carried out. This process includes specifying the goals of analysis, conducting research in the field of marketing, studying the information system and new scientific and technological progress. The following are the steps:

• The first block can be called analytical. The recommendations developed in it dictate decision-making in all other blocks.
• In the second block, the target market is selected. It is important to consider 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 the 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. At this stage, the development of a marketing plan, the creation of an annual marketing budget and evaluation of the implementation of the plan.

Innovative marketing in the financial sector

In the field of finance, innovation 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, the 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 operational component. This area is always given special attention. Banking marketing of innovation 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 embodiment in certain groups of the financial market. The functions of marketing financial innovations are fulfilled through the study of new social and economic processes, the formation of new non-standard ways of thinking, which are being implemented in all areas of the financial and information space. The practical tasks of banking innovation marketing are to attract new ideas, establish and expand communications, and organize the relationship of participants in the innovation process.

The specifics of the innovative product and the innovation market

It is obvious that an innovative product is a kind of innovation, but it is worth paying attention to its other characteristics, namely:

• Such a product is unique, but it also creates the risk of low sales, which is difficult to predict before the product enters the market.
• An innovative product has its author; it is an 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 goods will increase, as innovations are able to shape the new needs of customers.

The characteristics characteristic of an innovative market include the following:

• There is a psychological barrier between customer perception and an innovative product.
• The subjects of innovation marketing (for example, firms) must perform unusual tasks 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 trading floors to have a permanent place and distribution channels.
• The innovation market is global.
• The market is operated by information, administrative and financial infrastructures.
• The innovation market is characterized by a wide range of products and high competition.

Features of the innovation market segmentation

An innovative market, like any other, is divided into segments. The main principles of segmentation of the innovation market include:

• functional;
• food industry;
• geographical;
• disciplinary;
• problem.

The functional principle implies the distribution of consumers by their functions. This principle is wider than the product industry, as the company is interested in several innovative projects aimed at one function. For example, instead of developing a specific project for additional equipment for cars, you can take several innovative projects related to the transportation of passengers.

The product and industry principle is suitable for multidisciplinary firms, as well as for enterprises that produce innovative products with a wide range of applications. Two areas can be outlined: production and non-production, each of them has its own branches and sub-sectors.

Under the geographical principle, the market is divided into regions, in each of which the requirements for innovative products are different. First of all, such a distribution is necessary in the production of scientific and technical products, the region will greatly affect the needs of the buyer in this area, especially when it comes to the final product. Also, with geographical division, 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 with this distribution can perform different functions and can be in different regions.

The problem principle has arisen due to the fact that global scientific problems (for example, artificial intelligence) appear at the junction of scientific disciplines. They have an intersectoral and cross-functional nature.

Consumer Perception of an Innovative Product

1. Primary awareness. The buyer has heard about innovation, but his knowledge of it is superficial.
2. Product Recognition. The consumer recognizes the product, he is interested in it. You can search for additional information about the new product.
3. Identification of innovation. The buyer compares the goods with their needs.
4. Assessment of opportunities to test products. The consumer decides to test the new items.
5. Testing innovation by the buyer, obtaining additional information about it.
6. The consumer acquires or invests in the creation of innovation.