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Strategic Marketing
1. Imperatives for Market-Driven Strategy
2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic Customer Relationship Management
5. Capabilities for Learning about Customers and Markets
6. Market Targeting and Strategic Positioning
7. Strategic Relationships
8. Innovation and New Product Strategy
9. Strategic Brand Management
10. Value Chain Strategy
11. Pricing Strategy
12. Promotion, Advertising and Sales Promotion
Strategies
13. Sales Force, Internet, and Direct Marketing Strategies
14. Designing Market-Driven Organizations
15. Marketing Strategy Implementation And Control
CHAPTER 8
Innovation and New Product
Strategy
McGraw-Hill/Irwin
8-4
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INNOVATION FEATURE
8-6
BIG BRAINSTORMS
8-7
Customer
Expectations
Customer
Satisfaction Gap
Actual
Product
Performance
OPPORTUNITIES
(1) New Products
(2) Improvements
(3) New and Improved
Processes
8-9
TRANSFORMATIONAL
Break-through innovation
Digital photography
NEW PRODUCT CATEGORY
Dell
Printers
Nike
Apparel
Golf clubs
LINE EXTENSION
New color/package/style
INCREMENTAL IMPROVEMENTS
Software updates
8-10
8-11
STEP 4
Creative innovation becomes the key driver of growth.
Companies master new design thinking and metrics and
create products that address consumers unmet, and often
unarticulated, desires.
STEP 5
The successful Creative Corporation emerges, with
new Innovation DNA. Winners build a fast-moving
culture that routinely beats competitors because of a high
success rate for innovation.
8-12
Leveragin
g
Capabiliti
es
Making Resource
Commitments
STRATEGIC
INITIATIVES
Selecting
the Right
Innovation
Strategy
Developing and
Implementing
Effective New
Product Processes
8-13
8-14
8-15
Screening
and
Evaluation
Business
Analysis
Marketing
Strategy
Development
Product
Development
Testing
Commercialization
8-16
R&D
Operations
Marketing
Finance
8-17
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IDEA GENERATION
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Alliances/
Acquisition/
Licensing
National
Policy
Creative
Methods
Direct
Search
METHODS
OF
GENERATING
IDEAS
Linking
Marketing
and Technology
Technological
Innovation
Exploratory
Customer
Studies
Facilitating
Lead User
Analysis
8-20
Beth Comstock calls herself a little bit of the crazy, wacky one at corporate
headquarters. And its an apt description when you realize she works at
General Electric Co. Comstock, 44, is charged with transforming GEs culture,
famously devoted to process, engineering, and financial controls, to one thats
more agile and creative. Chairman and CEO Jeffrey R. Immelt tapped the
former communications chief to become GEs first-ever chief marketing officer
almost three years ago. The job came with a critical twist: the goal of driving
innovation through the companys 300,000 plus ranks.
Creativity is still a word were wrestling with, Comstock concedes. It seems
a bit undisciplined, a bit chaotic for a place like GE. More comfortable
territory is the term imaginative problem-solving encouraging people to
think what if yet always with the aim of driving growth. One of Comstocks
first moves was to bring in anthropologists to audit GEs culture. They came
back with praise for GEs famous work ethic but noted that employees wanted
more wow more discoveries from the company founded by Thomas Edison.
8-21
Source: Bruce Hussbaum, How to Build Creative Companies, BusinessWeek, August, 2005, 77.
8-22
IDEA GENERATION
SCREENING
(fit/feasibility)
CONCEPT EVALUATION
BUSINESS ANALYSIS
8-23
Business Analysis
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Revenue Forecasts
Cost Estimation
Profit Projections
Other Considerations
8-24
MARKETING
STRATEGY
DEVELOPMENT
MARKET
TESTING
LAUNCH
8-25
PURPOSE OF
USE TESTS
Ideas for
improvements
Identify use
situations
8-27
COMMERCIALIZATION
The Marketing Plan
* Complete marketing strategy
* Responsibilities for execution
* Cross functional approach
Monitoring and Control
* Real time tracking
* Role of the Internet
* Include product performance metrics with performance
targets
8-30
Marketing Strategy
Market
Target(s)
Objectives
Marketing
Program(s)
8-31
Platform Products
Customized Products
8-32
Case Study
Walt Disney Company
* Known for films, animation, theme parks and
customer orientation
* Parks offer a variety of attractions as well as
cleanliness, order, and warmth
* Satisfying the customer is everyones job
* Disney has grown via diversification
* Sales and net income have fallen
* Discussion: How can Disney Recover?
8-33
8-34
8-35
Financial Aspect
8-36