Importance of Marketing Innovation and Competitive Advantage

Marketing Design Innovation
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Table of Contents
TASK 1............................................................................................................................................3
INTRODUCTION.......................................................................................................................3
Importance of marketing innovation and competitive advantage................................................3
REFERENCES................................................................................................................................6
TASK 2............................................................................................................................................7
INTRODUCTION...........................................................................................................................7
MAIN BODY..................................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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TASK 1
INTRODUCTION
Marketing refers to promotion and advertising of products and services to target people. It
is done with help of various sources such as social media, TV, newspapers, etc. Marketing
innovation is defined as applying new marketing strategies and concepts within market. The
concepts applied unique and distinct which are not been used before (Hernández, Cooper and
Murphy, 2018). Usually, it represents significant change in design or feature or product
packaging. With marketing innovation, promotion, pricing as well as positioning strategies are
changed.
Innovation is process of implementing new idea, concept, process, etc. within an organisation.
With help of innovation organisation is able to gain competitive advantage in the market.
However, concept of innovation is broad as it includes use of new technology and resources in
process or method and doing things in new way. furthermore, innovation must be related to
implementing idea at reasonable cost or to fulfil specific goals and objectives. For instance-
Samsung implement innovation in their products. They launch new smart phones with latest
technology and providing more storage (Ungerman, and et.al 2018).
Besides that, it is necessary for companies to sustain in market and gain competitive
advantage. A competitive advantage is advantage gained by organisation over others. It is either
in terms of value of product or service, low cost, high quality, etc. here, an example can be taken
of Apple that offer high quality smart phones like iPhone X, XR, etc. as compared to its
competitors (Kim, Kim and Choi, 2019).
However, strategic competitive advantage is gained through strategies that are applied by
company in the market. Generally, they are marketing strategies which distinguish firm from its
rivals. Thus, it has been analysed that marketing innovation and competitive advantage are
interrelated with each other.
Importance of marketing innovation and competitive advantage
As said by Molina-Castillo, Meroño-Cerdan and López-Nicolás, 2019 in such a
competitive business environment it has been identified for every organisation it has become
difficult to sustain. They need to implement innovation in order to differentiate themselves from
other in the market. Innovation enable in finding out new and distinct ways of competing within
industry. In this way they are able to gain competitive advantage into the market. There is great
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importance of marketing innovation for company. they are able to distinguish products from
others easily. The importance of marketing innovation is it in developing new products and
attracting people. With it , competitive advantage is gained. New features are added into
products with its design, etc this makes it easy to distinguish it from other products in the market.
Porter generic strategy
This is also a strategic model which helps in gaining competitive advantage. It provides
an overview to business that how they can achieve goals and compete with other firms.
Cost leadership – It is a strategy in which company can gain competitive advantage by
becoming the lowest cost provider within industry. They can offer goods at low cost than other
competitors in market. Basically, this type of strategy is applied by large firms that offer goods
with little variation. (Kim, Kim and Choi, 2019).
Cost focus- It is similar to cost leadership strategy where business gain competitive advantage
by offering products at low cost. But the difference here is they firm only do it specific markets
where customer base in large (Singh, Kennedy and Cohen, 2018).
Differentiation focus – It is a business strategy where company focus on differentiating its
products in target market segment. Here, needs of customers are identified and then products
are offered to them. Basically, niche market segment is focused in it. In addition, goods are
placed at premium price as it reflects its high quality and standards (Aksoy, 2017).
Differentiation leadership – This strategy is similar to differentiation one but here company
gain competitive advantage within industry. The product is differentiated on basis of one or two
criteria and then presented in market. They charge premium price for it and also provide value
added features as well (Sánchez-Gutiérrez, and et.al., 2019).
Moreover, there is another concept of innovation and marketing which is 4 P’s of
innovation. They are mentioned as :
Product – It is a type of innovation in which new products are offered to people by innovation.
The design is changed or new features are added and then offered to people. So, innovation is
made in product only. (Singh, Kennedy and Cohen, 2018).
Process- This P refers to changing process of operations. Here, production process, delivering
process, etc. of goods is changed (Tabeau, Gemser and Wijnberg, 2017).
Position- This innovation is referred to change in positioning of product in the market. Here,
target market is changed or way of positioning is modified.
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