Assignment number: 06

Assignment on-
“Summary of Innovation and
New Product Strategy”

Course Name and Code: Strategic Marketing (MKT 4204)

Trimester: Spring 2020

Section: B

Prepared by:
Name ID number
Nahid Hasan Tushar 111 162 138

Submitted to:
Dr. Kawsar Ahmmed
(Course Instructor)
Professor

Date of Submission 29th March 2020

( ) Regular Submission ( ) Late Submission

School of Business & Economics

United International University
 Summary of CH-8 Innovation and New Product Strategy
In this chapter we will be focusing on the main two parts. First “Innovation as a Customer Driven
Process” and the second one is “New Product Planning”. Now we come back to the main parts, 1st part
is Innovation as a Customer Driven Process. Innovation is a mandatory avenue to successful business
performance due to the intense pressures of global competition and commoditization of products and
processes. To take the global and local challenges some organization may come with business model
innovation which plays a critical role in gaining a unique positions in the markets and competitive space
and other one is product differentiation plays a short term advantage. So that’s why business model
innovation is often taken by the marketer. Innovation also come with collaboration relationships within
the organization and among the value chain members, the competitors etc. the CEO also helps the
organization by cultivating innovative culture initiatives. Three are three types innovation. 1st is
transformational innovation which changes the whole industry making the old product obsolete like
introduction of digital camera changes the whole industry to adapt the new product. 2nd is the substantial
innovation which is the substantial changes in the existing product like basic mobile phone to smart
phone and the 3rd one is the incremental innovation which brings changes or new features in the existing
product like IPhone XI has four cameras which the previous version phones doesn’t have. To find out
which strategy of innovation we need to follow we need find out customer value opportunities. To find
out we need to ask two things. 1st “what we want to do?” Which is the objectives to identify needs for
new products innovation, does the existing products needs improvements, does we need improvements
in production processes and improvements in supporting services? And 2nd is “how we want to do”
which creates opportunities to fill out the customer satisfaction gap by developing new products,
improvements in products and making new and improved processes. To successfully manage these
things a successful innovators must have these characteristics. 1st is creating an innovative culture which
is essential to generating successful new products. 2nd is selecting the right innovation strategy which
involves defining the product, market and technology scope of the organization. 3rd is developing and
implementing new product processes which set important guidelines and boundaries for new product
planning. 4th is making resource commitments which involves allocating adequate resources to new
product initiatives. Finally the leverage capabilities which the organization have to lever capabilities to
the extent that it can give promising new product. As we told earlier we can innovate through
collaboration. So there are 4 collaboration. 1st is the elite circle in which a company chooses participants,
defines the problem and chooses the solution. 2nd is innovation mall where a company posts a problem
and anyone can propose a solution. 3rd is the innovation community where anybody can propose
problems, offer solutions and decide which solutions to use. 4th is The consortium which operates like
a private club with participants jointly selecting problems, deciding how to work on them and choosing
solutions. We also have to keep in mind the two realities of product cannibalization. Proactive
cannibalization and market requirements and customer value opportunities. Now we will discuss the 2nd
part “New Product Planning”. New product planning starts with developing an innovative culture and
strategy for innovation. Innovation culture can be encouraged by several interrelated management
initiatives like two-day innovation workshop of top executives to develop an innovation plan. This
would involve use of cross-functional teams, resource allocations, rewards, and innovation performance
metrics. Another develop an innovative statement to motivate the senior management’s role and
responsibilities, Conduct innovation training programs for employees and managers to encourage
commitment and involvement. Communicate the priority of innovation via articles, newsletters, and
presentations to employees, shareholders, and customers. Schedule innovation speakers on a regular
basis to expose employees to innovation authorities. For innovation we need some strategies, a
successful new product strategy includes setting specific, written new-product objectives, the role of
new products in contributing to the goals of the business, defining the areas of strategic focus, Including
longer-term, transformational projects in the portfolio along with incremental projects. To successful
the planning we need to have a strong process system. Which includes customer needs analysis, idea
generation, screening ideas and evaluation, business analysis, product development, after testing the
product, marketing strategy development and again then go to testing and then commercialization. We
need to distribute some responsibilities among the organization employees for new product planning
these includes coordination of new product activities, new product planning team, creation of cross-
functional task force, designation of a new products manager, integrating new product planning with
business functions, creation of a design center. Then we go for Idea Generation in we will search for
new ideas and how the ideas should be for the new product. Like how extensive and aggressive should
our idea search activates? , what specific sources are best for generating a regular flow of new product
ideas? Etc. to successful these idea generating process we need to use some methods of generating ideas
like Search which involves utilizing several information sources may be helpful in identifying new
product ideas, Marketing Research is way identify needs that can be satisfied by new products, Internal
and External Development involves continues research and development by the laboratories to generate
many new product ideas and finally the Other Idea Generation Methods which is useful to get new ideas
from employees and marketing partners and customers. After Idea Generation, it goes to screening
which involves selecting the right ideas which may actually works then go concept evaluation which
involves development and testing the ideas which are being selected from screening and after that go to
business analysis. Business Analysis includes revenue forecast, preliminary Marketing Plan, Cost
Estimation, and Profit Projections. After doing all these we go to the product and process development
to develop a product process which includes product specification, industrial design, prototype, Use
tests, Process development. When all these are complete we formulate marketing strategy. Marketing
strategy decisions depends on two things. They are market targeting, positioning strategy. After
formulating marketing strategy decisions we go for Market Testing which includes simulated Tests,
scanner Based Tests etc. After successful market testing we will go for commercialization which
includes Marketing Plan, Monitoring and control.