L1: MARKETING INNOVATION &
NEW PRODUCT DEVELOPMENT
BMAREL2X LESSON 1 - 3RD TRIMESTER – MAR ELECTIVE 2
The distinction among the 3 types of innovation
is rooted in their connections to the current
PRODUCT INNOVATION
market landscape. Both low-end and
new-market disruptions fall under the category
A groundbreaking product has the potential to
of disruptive innovation, wherein companies
penetrate a static market and address customer
demands in fresh and captivating manners. with limited resources employ them to compete
Essentially, innovation enables companies to against established businesses.
remain pertinent and foster expansion.
B INNOVATION AND PRODUCT
A WHAT IS PRODUCT INNOVATION? DEVELOPMENT
● It is the process of creating a new ● Innovation and product development
product—or improving an existing one— work together to turn ideas into practical
to meet customers’ needs in a novel way. solutions for consumers. Using
technology, creativity, and market
insights, businesses can produce
3 TYPES OF INNOVATION
impactful products and services.
Sustaining Innovation UNDERSTANDING INNOVATION
● It involves the ongoing commitment of a
business to consistently deliver the ● Innovation applies new ideas, processes,
utmost quality products to its most and technologies to enhance products,
valued customers. services, or business operations, resulting
● Aimed at meeting and exceeding in higher productivity, efficiency, and
customer expectations, thereby ensuring
customer satisfaction.
long-term satisfaction and loyalty.
Low-End Disruption C ROLE OF PRODUCT DEVELOPMENT
● Refers to a strategic approach employed
● It involves conceptualizing, designing,
by emerging companies, wherein they
and introducing new products or
enter by the market from
enhancing one's through research,
New-Market Disruption testing, and cross-departmental
collaboration.
● Try to introduce a new product on the
market. Staying Ahead of the Competition
● Occurs when fledgling companies
● Innovation allows businesses to stay
pioneers a fresh segment within an
ahead of the competition by offering
established market and progress towards
unique and cutting-edge products that
higher market tiers, ultimately making
stand out in the market.
existing products from established
competitors outdated through gradual
displacement.
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L1: MARKETING INNOVATION &
NEW PRODUCT DEVELOPMENT
BMAREL2X LESSON 1 - 3RD TRIMESTER – MAR ELECTIVE 2
Meeting Customer Needs Testing and Validation
● Product development ensures that ● Prototypes undergo rigorous testing to
businesses continuously address ensure they meet quality standards and
customer needs and preferences, leading customer requirements.
to higher customer satisfaction and
loyalty. Launching and Commercialization
Driving Business Growth ● It is launched in the market,
accompanied by effective marketing and
● Innovative products often open doors to distribution strategies.
untapped markets and revenue streams,
driving overall business growth. Post Launch Evaluation
Enhancing Brand Reputation ● Continuous monitoring and feedback
collection help in identifying areas for
● Forward thinking organizations known improvement and future innovation.
for innovation develop a strong brand
reputation, attracting top talent and loyal D CHALLENGES AND HOW TO
customers. OVERCOME THEM
Navigate Market Challenges
Resource Constraints
● Innovation helps businesses adapt to
● Lack of resources can hinder innovation.
dynamic market conditions and
Seek external partnerships or explore
overcome challenges effectively.
cost-effective alternatives.
IDEA GENERATION Resistance to Change
In this stage, teams brainstorm and generate ● Communicate the benefits of innovation
creative ideas that have the potential to become and involve them in the process.
successful products. ● People are hesitant to try new products
(e.g. Mobile Phones)
Feasibility Assessment
Market Uncertainty
● Ideas are evaluated based on technical,
financial, and market feasibility to ● Market dynamics can be unpredictable.
determine their viability. Conduct thorough market research and
be agile in your approach.
Design and Development
Protect Intellectual Property
● Selected ideas move on to the design
and development phase, where
prototypes are built and tested.
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L1: MARKETING INNOVATION &
NEW PRODUCT DEVELOPMENT
BMAREL2X LESSON 1 - 3RD TRIMESTER – MAR ELECTIVE 2
● Safeguard your innovative ideas with ● Is the most profitable stage, the time
patents and trademarks to prevent when the cost of producing and
intellectual property theft. marketing decline.
● With the market saturated with the
E PRODUCT DEVELOPMENT CYCLE product, competition now higher than at
other stages, and profit margins starting
to shrink, some analysts refer to the
The term product life cycle refers to the length
maturity stage when sales volume is
of time from when a product is introduced to
“maxed out”
consumers into the market until it’s removed
● (e.g Nokia has reached its maturity stage)
from the shelves. This concept is used by
● If you are not being creative, you will be
management and by marketing professionals as
missed out.
a factor in deciding when it is appropriate to
increase advertising, reduce prices, expand to Declined Stage
new markets or redesign packaging.
● As the product takes on an intense
HOW PRODUCT LIFE CYCLE WORKS increased competition as other
companies emulate its success, the
product may lose market share and
● Products like people, have life cycles. The
begin its decline.
life cycle of a product is broken into four
● Product sales begin to drop due market
stages— Introduction, growth, maturity
saturation and alternative products, and
and decline.
the company may choose to not pursue
Introduction Stage additional marketing efforts.
● The introduction phase is the first time
customers are introduced to the new
product.
● A company must generally include a
substantial investment in advertising and
a marketing campaign focused on
making consumers aware of the product
and its benefits, especially if it is broadly
unknown what the item will do.
Growth Stage
● This is characterized by growing demand,
an increase in production, and expansion
in its availability.
Maturity Stage
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