Summary
Summary Answers to questions: Product innovation in marketing
- Module
- Institution
- Book
Answers to questions: Product innovation in marketing
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Summary: Product innovation in marketing
Seller
Follow
maelysistace4
Reviews received
Content preview
Exam questionsChapter 1
1. Explain how innovation theory forms a new approach for marketing on the one
hand and elaborate on how marketing theory can fuel innovation success.
Innovation theory = new approach for marketing
Traditionally, innovation theory employed by businesses/scholars to describe and understand
the extent to which innovations can be successfully managed and engaged within an
organization facing environmental changes, including:
- Innovation classifications (i.e., radical versus incremental)
- Diffusion of innovations
- Life cycle & adoption of innovations
Marketing theory = fuels innovation success
Marketing theory is necessary as businesses need marketing insights to manage emerging
technologies (i.e. social media, AR, AI, mobile apps…) that can address consumers’ desire to
enjoy more engaging (shopping, product/brand & service) experiences in omnichannel
environments. However, this directly implies many challenges:
- Select innovative efficient solutions/stimuli that fit consumers’ expectations and
organizational purposes.
- Designing new, more cost-effective, customized and superior customer experiences,
handling multiple channels
- Willingness to accept as a marketing focus should be extended to an innovation process
perspective.
Moreover, marketing theory plays a crucial role in fueling innovation success. In today's rapidly
evolving landscape, businesses require marketing insights to effectively manage emerging
technologies such as social media, augmented reality (AR), artificial intelligence (AI), and
mobile apps. These technologies offer opportunities to create more engaging shopping
experiences and connect with consumers across various channels. Marketing theory provides
frameworks and strategies for businesses to select innovative solutions that align with consumer
expectations and organizational goals.
Additionally, marketing theory emphasizes the importance of designing cost-effective,
customized, and superior customer experiences, especially in omnichannel environments where
consumers expect seamless interactions across multiple touchpoints. By adopting a
marketing-focused approach to innovation, businesses can better understand consumer needs
1
,and preferences, leading to the development of innovative products, services, and experiences
that resonate with their target audience.
In summary, innovation theory offers a new perspective for marketing by emphasizing the
importance of adapting to environmental changes through innovation, while marketing theory
provides the insights and strategies necessary to fuel innovation success by effectively
managing emerging technologies and delivering superior customer experiences. Together,
these two theories form a powerful framework for businesses to thrive in today's dynamic
marketplace.
2. What are the 2 main theoretical perspectives to study innovation as a process?
Explain!
Resource-Based View (RBV): The Resource-Based View (RBV) of innovation focuses on
understanding how firms can leverage their internal resources and capabilities to achieve
sustainable competitive advantage. In this perspective, innovation is seen as a process driven
by the management of intangible resources that are valuable, rare, inimitable, and
non-substitutable (VRIN). These resources could include intellectual property, organizational
culture, brand reputation, and human capital. One key aspect of the RBV is the emphasis on
learning and innovation capability, which involves the management of information asymmetries
related to processes associated with intangible resources. This means that firms must develop
the ability to acquire, assimilate, and apply new knowledge effectively to create differential value
compared to their competitors. By continually innovating and leveraging their unique resources,
firms can maintain a competitive edge in the marketplace.
-> management of intangible resources to create differential value
Knowledge-Based View (KBV): The Knowledge-Based View (KBV) of innovation focuses on the
strategic role of knowledge as a critical resource for organizational success. According to this
perspective, knowledge is considered a strategic asset that drives innovation and contributes to
a firm's competitive advantage. Organizational learning plays a central role in the KBV, as firms
accumulate and integrate knowledge through various processes such as experience,
experimentation, and interaction.In the KBV, innovation is seen as a result of organizational
learning through "routines," which are repositories of knowledge that guide individual and
collective actions within the organization. These routines represent established patterns of
behavior, practices, and procedures that enable firms to systematically generate, share, and
apply knowledge to drive innovation. By integrating individual differential resources at an
organizational level and fostering a culture of continuous learning and knowledge sharing, firms
can enhance their innovation capabilities and adapt to changing market conditions more
effectively.
In summary, the Resource-Based View (RBV) and the Knowledge-Based View (KBV) provide
complementary perspectives on the innovation process. While the RBV emphasizes the
2
,management of intangible resources to create differential value, the KBV focuses on the
strategic role of knowledge and organizational learning in driving innovation and sustaining
competitive advantage. Together, these theoretical perspectives offer valuable insights into how
firms can effectively manage innovation as a dynamic and iterative process.
3. Describe the model of Picciochi et al. (2009) on the process between creativity and
innovation!
The model proposed by the perspective you
provided underscores the interconnectedness
and circularity between creativity and
innovation within a business context. Here's a
breakdown of the process between creativity
and innovation based on the information you
provided:
The innovation and creativity departments are closely related: if the technological environment
‘suggests’ the activation of the innovation process, then within the business the creativity of the
entrepreneur induces innovative methods in routine and in output. Within the business as a
system it develops a series of processes of creativity in innovation: the creativity would
represent the input and the innovation the output. This means: if the creativity (marketing
department) identifies a cognitive process that can generate new solutions, then the innovation
is the product of a complex cognitive process based on selection criteria.
The circularity of creativity-innovation, is based on a series of processes that allow the
entrepreneur to generate value for the firm through its routines. In particular:
- The process of generation: Creativity induces the entrepreneur to generate the
assumptions of action/ideas in response to the stress/stimuli (Idea generation).
- The process of selection: Evaluation and selection of ideas in terms of appropriateness
and feasibility.
- The process of developments: Implementing and translating ideas into tangible
outcomes that can enhance a firm's offerings, operations and strategies through
process and/or product innovations.
- The process of contamination: Innovative learning enhances the creative potential of
the firm of the firm, by fostering a culture of ongoing innovation and improvements
Circular Causality: The relationship between creativity and innovation is characterized by
circular causality rather than linear causality. Creative inputs lead to innovative outputs, which in
turn fuel further creativity and innovation, creating a self-reinforcing cycle of value creation.
Entrepreneurial Perspective: From an entrepreneurial standpoint, innovation enables challenge
management, improving organizational efficiency and effectiveness. Innovations bring about
3
, changes in products/services, production processes, organizational roles, and management or
governance structures, contributing to the firm's competitive advantage and sustainability.
Business Systems Perspective: Managing technology and innovation for marketing involves
considering all interactions within the integrated phases of the business system process.This
approach recognizes the influence of various stakeholders and emphasizes the importance of
managing innovation as a dynamic and interconnected process.
This means that the application of an innovation requires greater specialization and therefore
contributes to create firm fundamentals for a differential and sustainable CA. The innovation can
be a change in product/process, production process, in organizational roles or in
management/governance of firms. It also means that innovation and the process are the basis
of the development of creative dynamics.
4. How can we define “routines” & “core abilities” in the innovation process
according to Tidd & Bessant (2015). Provide 4 examples and explain.
- Searching: Scanning the environment (internal and external) for, and processing relevant
signals about, threats and opportunities for change.
- Selecting: Deciding to which of these signals to respond.
- Implementing: Translating the potential in the trigger idea into something new and
launching it in an internal or external market. Making this happen requires the acquisition
of knowledge resources to enable the innovation, executing the project under conditions
of uncertainty, and launching the innovation into relevant internal or external markets.
- Capturing value from the innovation: through sustaining adoption, diffusion and learning
from progressing through this cycle so that the organization can build its knowledge base
and can improve the ways in which the process is managed.
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller maelysistace4. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £11.74. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now