Marketing Innovation(Mukul Bhanawat)Pbs-e

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A

Project Report

On

MARKETIN INNOVATION

PACIFIC BUSSINESS SCHOOL

For The Partial Fulfilment of Two Year Full Time

Post Graduated Program (PGP)

2010-2012

Submitted To:-

Submitted By

Mrs.Shikha Bhargava

Mukul Bhanawat

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(Asst.Prof.)

M.B.A. Part-1

PREFACE

If you wish to plan for a year, sow seeds, if you wish to plan for ten

years, plant tree. If you wish to plan for a lifetime, develop a man.

All the learnings in our MBA course is practice. However,

hands-on experience in the Reality of world during our

course is very necessary to be Learn about the current

market issues and what was happen in the market in

current scenario. Because MBA is totally Based on the

market conditions.

This Report is based on the MARKETING INNOVATION

in which we learn the what are the market condition and

how innovation is help full in the current market and what

are the ways the take to make there market strong and

innovative for the customer.

I started first phase of my project by doing a market

analysis, after that I started with the second phase which

involved all the official sites and the news papers and the

magazines.

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In this report I have explained what undertook based on

research and my personal experience. I have also tried to

understand what are the market and how its effect the life

of the people and how innovation help to make the best

market as an additional part of my study.

ACKNOWLEDGEMENT

With the completion of this Project my experience

was excellent. The task of undertaking the

Knowledge through a dynamic experience. With

the constant guidance, valuable suggestion, timely

help and heart warming encouragement rendered

to me by Prof. B.P. Sharma (Director) and also to

give a regular and moral support by Mrs. Shikha

Bhargava (Asst.Prof.) with all other Proffers of

marketing team, the College served as an

excellent learning platform.

Pacific College allowing me to undertake the

project & making available all facilities for success

full completion of the study besides me to pursue

the study on proper line.

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In end, I also wish to thank all those names have

not been mentioned above but have directly or

indirectly helped me in various ways in

successfully carrying out the project.

INDEX

PREFACE.-2-

ACKNOWLEDGEMENT

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What is

marketing.................................................................

...............-5-

What is

Innovation

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What is Marketing

Innovation...-8-

The Yin-YangEvidence...-9-

Similarities between Innovation and

Marketing.-10-

The Creation of the

Customer.-11-

Marketing

mix...

-12-

Four

P's

.-13-

Marketing - from "4 P's" to "4 C's" to "4

V's"..-13-

Product vs. Consumer vs.

Validity....-14-

Price vs. Cost vs.Value....-15-

Place vs. Convenience vs.

Venue-17-

Promotion vs. Communication vs.

Vogue.-19-

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Conclusion

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What is marketing?

Marketing is "the activity, set of institutions,

and processes for creating, communicating,

delivering, and exchanging offerings that

have value for customers, clients, partners,

and society at large." Marketing is a product or

service selling related overall activities. It

generates the strategy that underlies sales

techniques, business communication, and business

developments. It is an integrated process through

which companies build strong customer

relationships and create value for their customers

and for themselves.

Marketing is used to identify the customer, satisfy

the customer, and keep the customer. With the

customer as the focus of its activities, it can be

concluded that marketing management is one

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http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing_management


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of the major components ofbusiness management.

Marketing evolved to meet the stasis in developing

new markets caused by mature markets and

overcapacities in the last 2-3 centuries. The

adoption of marketing strategies requires

businesses to shift their focus from production to

the perceived needs and wants of their customers

as the means of staying profitable.

The term marketing concept holds that achieving

organizational goals depends on knowing the

needs and wants oftarget markets and delivering

the desired satisfactions. It proposes that in order

to satisfy its organizational objectives, an

organization should anticipate the needs and

wants of consumers and satisfy these more

effectively than competitors.

What is Innovation?

The term innovation derives from the Latin

innovatio, the noun of action from innovare. The

Etymology Dictionary further explains innovare as

dating back to 1540 and stemming from the Latin

innovatus, pp. of innovare "to renew or change,"

from in- "into" + novus "new".

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http://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Target_markets


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The central meaning of innovation thus relates to

renewal or improvement, with novelty being a

consequence of this improvement. For an

improvement to take place it is necessary for

people to change the way they make decisions, or

make choices outside of their norm.

An invention is useful only to the inventor unless it

is offered to the public, however niche that public

may be. If the invention improves some product,

process or service for the public, then that

invention transforms into an innovation.

An innovation can be big or small. Brand-new or

just a bit different, it doesn't matter. An innovation

can be clearly complex or seemingly simple.

Innovations are often thought of in terms of

technical achievement, but can also be a design.

The type, industry and style of innovation are

irrelevant; an innovation's impact determines its

qualification.

The presence of a genius can help with innovation

it may speed up the end result by having a

person who can see and make the future happen.

However, innovation is more than the work of any

one "Einstein." Innovation involves the taking of

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the work of an individual (or team) of inventors and

taking it to a broader audience.

The future of many businesses depends upon their

ability to innovate. Competition is fierce.

Knowledge spreads quickly. The ability of a

company to not only keep up with its current

business practices, but to exceed its own and its

competition's expectations are critical to survival.

What is Marketing Innovation?

Definition: A marketing innovation is the

implementation of

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a new marketing method involving significant

changes in product design or packaging, product

placement, product promotion or pricing.

Context: Marketing innovations are aimed at

better addressing customer needs, opening up new

markets, or newly positioning a firms product on

the market, with the objective of increasing the

firms 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 firms existing marketing methods. The

new marketing method can either be developed by

the innovating firm or adopted from other firms or

organisations. New marketing methods can be

implemented for both new and existing products.

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The Yin-Yang Evidence

Let me first treat you to two lists of weird

symmetries and similarities between marketing

and innovation, in the Lincoln-Kennedy-

assassination similarities mode. I want to convince

you there is a pattern here and, unlike the Lincoln-

Kennedy stuff, that there is a reason for thepattern. Lets start with the similarities, and then

look at the polarities.

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http://en.wikipedia.org/wiki/Lincoln_Kennedy_coincidences_urban_legendhttp://en.wikipedia.org/wiki/Lincoln_Kennedy_coincidences_urban_legendhttp://en.wikipedia.org/wiki/Lincoln_Kennedy_coincidences_urban_legendhttp://en.wikipedia.org/wiki/Lincoln_Kennedy_coincidences_urban_legend


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Similarities between Innovation and

Marketing

Both functions are systematically misunderstood,

compared to other business functions. Innovation

is often reductively understood as invention and

R&D, while marketing is often reductively

understood as promotion and advertising. By

contrast, nobody seriously misunderstands what

HR, accounting or manufacturing are about.

Ideally, both are in a balance: the optimal ratio of

marketing spend to engineering spend in a product

launch (known as the Grabowski Ratio) is 1.

Both functions lay claim to the DNA of the

organization. Marketing owns the overt form, the

brand, that integrates the self-image and story of

the company, while innovation owns the

individuation behind the brand, within the society

of corporations.

Both functions frame their basic processes in terms

of an increasing certainty funnel metaphor. In

innovation, the funnel narrows from basic R&D

through various stage gates to successful

commercialized product/service while in

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http://www.ribbonfarm.com/2008/04/03/inventoritis-and-the-grabowski-ratio/http://www.ribbonfarm.com/2008/04/03/inventoritis-and-the-grabowski-ratio/


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marketing, the funnel narrows from a customer

who is unaware of your offering, through stages of

awareness, interest, purchase, repeat purchase

and the ultimate stage, loyalty. In both cases,

the fundamental dynamic is a weeding out, a filtration.

Of ideas in one case, of people in the other .

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ingredients", who sometimes follows recipes

prepared by others, sometimes prepares his own

recipe as he goes along, sometimes adapts a

recipe from immediately available ingredients, and

at other times invents new ingredients no one else

has tried.[1] A prominent marketer, E. Jerome

McCarthy, proposed a Four P classification in

1960, which has seen wide use.

Four P's

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http://en.wikipedia.org/wiki/Marketing_mix#cite_note-canadianperspective-0http://en.wikipedia.org/wiki/E._Jerome_McCarthyhttp://en.wikipedia.org/wiki/E._Jerome_McCarthyhttp://en.wikipedia.org/wiki/Marketing_mix#cite_note-canadianperspective-0http://en.wikipedia.org/wiki/E._Jerome_McCarthyhttp://en.wikipedia.org/wiki/E._Jerome_McCarthy


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Marketing - from "4 P's" to "4 C's"

to "4 V's"

While I was studying marketing in the university,

the "4 P's" of marketing approach was the core of

the subject. Later, BOB LAUTERBORN, professor of

advertising at the University of North Carolina

discovered the "4 P's" has some major flaws that

result in many product launching failures. He

proposed a new set of "4 C's" marketing principle

to replace the traditional "4 P's".

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In our fast moving age of internet time, the "4 C's"

is also facing with some dilemma and a new

marketing tool of "4 V's" is being contemplated for

application.

Product vs. Consumer vs. Validity.

The old Product approach is to develop and

produce a product as good as possible to market

and make sales. The Consumer approach is to

study consumer wants and needs, and to

manufacture products in response to those needs.

Validity discover that product with great consumer

needs may not be valid and need to be addressed.

We have recently cases of product with greatconsumer demand such as toys and foods from

China that needed to be moved out from the

shelves due to high risk nature of the products.

Marketing should not only consider the wants and

needs of the consumers, but also other product

factors of safety, environment, and social issues,

viz. Validity. Many internet products may be of

great demand to consumers but should not be

marketed due to age inappropriateness, to cite an

example.

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Examples

Packaging methods adopted by many

companies like Tide, Parachute, Surf, etc.

In one product different kind of varieties given

by companies on the basis of taste,

preferences.

Advantages

Understanding consumers need and wants.

Easily address the exact need of consumers.

Accelerates speed-to-market.

Increases likelihood of product success.

Introduces discipline into on ordinarily chaotic

process.

Reduces re-work.

Achieves efficient and effective allocation of

scarce resources.

Disadvantage

The main problem with the stage-gate process isthe potential for structural organization to interferewith creativity. Some experts believe that overkillof structure can cause creativity and customizationto be put on the back.

Price vs. Cost vs. Value

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Convenience needs to take one step higher up to

the Venue level. Venue is not only providing place

for clients to come, it is sales to your home. You

can really shop while having your pajamas on.

Pizza home delivery has snatched up a big portion

of food sales all over the world. Food is just at your

finger tips. How about internet sales, internet

banking, or what have you? May be we should

provide our customers with a buying venue of

electronic gadget of some kind instead of a place

with conveniences.

Examples

Pizza hut

E-banking

Advantages

Direct approach to customer.

Time saving. Consumer oriented.

Cover the maximum customers in under one

roof.

Disadvantages

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Old retail market

Only focus on the big retail market like

mall, big companies.

Not fixed medium for sales its based on

the requirement.

They have only direct selling no retail

market for sale.

Promotion vs. Communication vs.

Vogue

Lauterborn advocated communication instead of

promotion. Promotion is one way street

advertisement in telling what you think is best in

the promoting product. Communication, however,

applies two ways traffics between the buyer and

seller to advertisement. It is an "interactive"

program using phone, web site, etc. to get

response from advertisement.

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Vogue requires more than just getting a message

across and 2 ways communications. It is saying

that to make an advertisement successful, it must

have vogue or in trend. It must be popular,

acceptable, and has great public favour. Like

fashion, advertisement has a popular fashion

trend. This must be applied to squeeze out the

best of promotion.

Personally, I see the three marketing sets of "4 P's"

to "4 C's" to "4 V's" are just the same old wine Ps'

in a new bottle C' and newer bottle "V'. How well

the different tool performs not really of the tool by

itself but the person who uses it. So which ever

tool you choose, you should learn it thoroughly and

apply it wisely.

Examples

Ads in mall

Ads on lorry Ad on bags

Mobile and net ad

Advantages

Getting best for promoting the product.

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Best for two way interaction.

Easily getting attention of consumer.

Disadvantages

Promotion is one way street advertisement.

Communication applies two ways traffics

between the buyer and seller to

advertisement. Telephone and web due to that

the miss understanding was create.

Vogue requires more than just getting a

massage in these the two way communication

was done do the both parties will there is a

problem to set time

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Conclusion

If youre trying to enhance your marketing

program, or create one from scratch, keep this

methodology in mind: innovation, quantification,

orchestration, documentation. This process will

ensure constant growth and improvement in your

marketing results.All sales and marketing personnel should be

utilizing and implementing the latest innovation in

all they do. This methodology now becomes your

control. Your next innovation is only effective if it

produces better results than your control.

Dont just take my word for it, look at most major

brands or category leaders. Under the hood, youll

find systems for innovation, ways of testing,

measuring, implementing, and documenting in a

seemingly effortless fashion.

Improving your process of orchestration is also

extremely important. The faster you implement

your innovation across the business in a

consistent fashion, the better your results become.

Wal-Mart is a master of this. If there is an

innovation in one store, it is quickly shared and

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implemented with all store managers across the

U.S. The result is innovation on a massive scale

which has a direct and positive influence on ROI.

BIBLIOGRAPHY

WEBSITE

websitemarketingnow.com Forrester startupnation.com

business-strategy-innovation.com adage.com business-strategy-innovation.com fundingyournonprofit.com blogs.e-bim.com business901.com www.mifeurope.com

JOURNALS

[HBR Innov] Harvard Business Review on

Innovation (2001).

Winning at New Products by Robert

Cooper.

Dolan & Simon (1996). Power Pricing. NewYork: The Free Press.

Doyle (2000). Value-Based Marketing. NewYork: Wiley.

Kotler (2003). Marketing Management:Analysis, Planning, Implementation & Control,11th

Edition. Englewood Cliffs: Prentice-Hall.

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