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Innovation in Marketing

Marketers in many industries know that innovation through new product development is vital to remain competitive. But product decisions are not the only areas affected by new developments. As we’ve discussed throughout the Principles of Marketing Tutorials, innovation can affect almost all marketing areas. Below is a sampling of how innovation has affected different marketing areas:

 

Marketing AreaEffect of Innovation
Marketing Research Creates new ways to conduct research including more sophisticated methods for monitoring and tracking customer behavior and analyzing data.
Targeting Markets Allows for extreme target marketing where marketing-to-person is replacing mass marketing. For customer service, technology makes it easier to manage relationships and allows for rapid response to customer’s needs.
ProductCreates new digital products/services. Incorporation of innovation into existing product/service enhances value by offering improved quality, features & reliability at a lower price.
PromotionNew techniques allow better matching of promotion to customer activity and individualized promotion. Makes it easier for sellers to offer product suggestions and promotional tie-ins.
Distribution Creates new channels for distribution and transaction (e.g., electronic commerce) that include making it easier for buyers to place orders. Allows more control over inventory management and closer monitoring of product shipment
PricingEnables the use of dynamic pricing methods.

 

Many of the benefits shown above are driven by the evolution of the Internet. The Internet is transforming how all functional areas of an organization perform work. However, it can be argued that no functional area has been more affected than marketing. Throughout the Principles of Marketing Tutorials we have seen evidence of how the Internet has impacted marketing. Over the next decade it is expected that the Internet’s effect on marketing will continue to grow and marketers are well served to embrace this.

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