Assignment number: 4

Assignment on-
“Summary of Innovation & New Product Strategy Chapter”

Course Name and Code: Strategic Marketing (MKT 4204)

Trimester: Spring 2020

Section: B

Prepared by:
Name ID number
Rafida Jahan (Mim) 111 161 324

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

Date of Submission 29.03.2020

( )Regular Submission ( )Late Submission

School of Business & Economics

United International University
 Summary
Creativity & innovation are essential to all organiztions’growth & performance in the
global market-place, there are two broad outlines:-

Innovation as a Customer Driven Process

All marketing activities are calculated & implemented for the target customers & customers
‘satisfactions. So, when you take innovation initiatives, this becomes as Customer Driven
which is based on customers ‘requirements & market ‘requirements.

Need to consider some factors like- (a) Because of global competition & commoditization of
products & processes, org should undertake innovation which is Mandatory Avenue to
successful business performance. (b) Consider 2 alternatives channels (Business Model &
Product Differentiation), (c) Collaboration relationships within org & among value chain
members, government and competitions. (d) Chief executive officers must lead the org’
innovation culture initiatives.

Transformation Innovation (New products & value created is substantial), Substantial

Innovation (Significally new & create important value for customers), Incremental
Innovation (Modify the performance of products & greater perceived value) are the types of
Innovation.

“Customer Value Opportunities”

Understand (1) what we want to do? & (2) How we want to do?

“Characteristics of Successful Innovators.” or “Successful Innovators.” These include

(1) Creating an innovative culture, (2) Selecting the right innovation strategy, (3) Developing
& implementing effective new product processes, (4) making resource commitments & (5)
Leveraging distinctive capabilities. But for the realities of product cannibalization maybe
become risk on bringing innovation.

New Product Planning

Develop a culture for innovation through several interrelated management activities like,
(a) Plan & implement a 2-day innovation workshop of top executives to develop an
innovation plan by using cross functional teams, resources allocations, and reward &
innovation performance metrics. (b) Develop an innovation statement (In the long run a
company cannot survive on doing the same things better and cheaper because of the changes
of the markets). (c) Conduct innovation training program.(d) Understand the priority of
innovation to shareholders, employees & customers. Strategy for innovation like (a) Setting
specific, written new products objectives, (b) Communicating throughout the organization the
role of new products in contributing to the goals of the business. (c) Defining the areas of
strategic focus, (d) including longer-term, transformational projects.
 Planning Process of New Products

(a)Idea generation starts the process of planning for a new product. There are various
internal-external sources of new product ideas. Ideas are identified by (b) analyzing customer
need analysis like from information search, marketing research, research & development,
incentives & acquisition.

(c) Screening, evaluation & business analysis help determine if the new product concept is
sufficiently attractive to justify proceeding with development. Design of the product and use
testing transform the product from a concept onto a prototype. Product development creates
one or more prototypes. Product testing obtains user’s reactions to the new product.

(d) Production development determines how to produce the product commercial quantities at
costs that will enable the firm to price the product at level attractive to buyers.

(e) Marketing strategy development begins early in the product planning process. A new
marketing strategy is needed for a totally new product. Product line additions, modifications
& other changes require a less extensive strategy development. Completion of the product
design & marketing strategy moves the process to the market stage. At this point
management may decide to obtain some form of market reaction to the new product before
full scale market entry.

(f) Testing options include simulated test marketing, scanner based test marketing &
conventional test marketing. Industrial products are not market tested as much as consumer
products. Instead, use tests of product prototypes are more typical for industrial products.

(g) Commercialization completes the planning process, moving the product into the
marketplace to pursue sales & profit performance objectives.