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BM3315 Strategic Marketing Lecture Nine: Innovation Management
BM3315 Strategic Marketing Lecture Nine: Innovation Management
STRATEGIC MARKETING
Lecture Nine
Innovation Management
LEARNING OUTCOMES
Understand the concept and forms of innovation
Able to analyze the characteristics of innovation
strategies
Able to summarize the theories on the process
of the development of new products
Understand the role of time in market
appearance
Identify the common form of innovation in
company structure
PRODUCT INNOVATION
STRATEGIES
PRODUCT INNOVATION
STRATEGIES
Reactive Strategies
Adaptation or
challenges
Four types:
reaction
Defensive
Copying
Second but Better
Responsive
to
market
needs
and
PRODUCT INNOVATION
STRATEGIES
Defensive Strategy
Aims to defend the existing goods of a company
against the growth in market share of the
competitions product through product modification,
launch of new brand and repositioning
Copying Strategy
Launch of the companys own brand results from
copying (with minor modification) of a successful new
product from a competitor
PRODUCT INNOVATION
STRATEGIES
Second But Better Strategy
A more developed and better brand is launched onto
the market in comparison of competitors new product
Responsive Strategy
Company develops a new product on the basis of
well-identifiable consumer needs
PRODUCT INNOVATION
STRATEGIES
Proactive Strategies
Adopted by those companies that take initiatives in
the market
Consist of:
Marketing
Research and Development
Acquisitions
Strategic Alliances
PRODUCT INNOVATION
STRATEGIES
Research and Development
Applied research into the direction of the application
of new scientific and technical results (product
innovation / technical innovation)
PRODUCT INNOVATION
STRATEGIES
Acquisition
Acquisition of the right to use patents, licenses and
company properties
Strategic Alliances
Temporary cooperation between competitors to
develop certain new products by joining efforts,
abilities and resources
First Mover
Launch in parallel
Imitators
Innovators
Combination of both
of
According to Activities
Process of product development according to the
tasks and activities to be carried out
According to Decisions
Emphasis on decision-making where development
can be continued if the project meets the requirement
PRODUCT LAUNCH
AND FOLLOW-UP
Strategic decisions when introducing newly
innovated product:
PRODUCT INNOVATION IN
ORGANIZATIONS
Production teams were set for development of new
products
Consist of:
Vertical Production Team, led by the line manager,
who is responsible for coordinating the other
managers; a deputy line manager and an assistant
Triangle Production Team, consisting of a line
manager and two assistants
Horizontal Production Team, consisting of a line
manager and other experts such as marketing
manager
PRODUCT INNOVATION IN
ORGANIZATIONS
Concerning innovation, there are four steps to
set autonomous organizational units:
Each division sets up their autonomous innovation
Cooperative and divisional product development
The cooperative and divisional sector has the leading
role in developing new products
The divisions are responsible only for some simple
development tasks
PRODUCT INNOVATION IN
ORGANIZATIONS
Companys support and forms of corporate
subsidies to ensure the success of the new
product
Determination of a clear innovation policy (objectives,
resources)
Creation of product innovation projects
Creation of a suitable coordination and supervision
organization
A suitable corporate culture