Marketing Innovation and Competitive Advantage: A Detailed Report

This report delves into the concepts of marketing innovation and strategic competitive advantage. It defines marketing innovation as changes in product design, promotion, and pricing through new marketing methods, aiming to meet customer needs and build brand image. Strategic competitive advantage is defined as business strategies that enhance efficiency and competitiveness, achieved through cost control and product differentiation. The report examines how innovation impacts marketing research, market targeting, product development, promotion, distribution, and pricing. It further explores the 4Ps of innovation (product, process, position, and paradigm) and generic strategies like cost leadership, differentiation, and focus strategies, illustrating their application with examples. The conclusion emphasizes the significance of marketing innovation and its role in business success.

Marketing Design and
Innovation
Task 1

Table of Contents
INTRODUCTION......................................................................................................................3
Marketing innovation and strategic competitive advantage...................................................3
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................7

INTRODUCTION
Marketing innovation: It refers to developing changes associated with product in
terms of product design or package, product promotion or pricing through implementation of
a new marketing method. Its main aim is to identify the needs and demands of the customers
and develop the product accordingly which directly helps the company to improve their sales
and build brand image in consumer's mind (Radford and Bloch, 2011). Using advanced or
updated technology to enhance the features of products and do advertising the product
through innovative methods which is not previously used by an organisation. The company
can either implement innovative marketing methods or should import from other organisation
who already used these methods.
Strategic competitive advantage: It means the business strategies that help in
improving efficiency and capabilities of organisation in order to compete with their rival
company. It can be achieved through offering standard quality of product with lower prices or
offering greater benefits and service that makes product expensive. The company can attain
competitive advantage only when they formulate strategy in order to control cost and make
unique differentiated products than their rival company which helps in maximising the level
of satisfaction of customers more effectively and efficiently (Mariadoss Tansuhaj and Mouri,
2011). Its main aim is to build a brand image in competitive market so that they can survive
for loner period.
Marketing innovation and strategic competitive advantage
Marketing innovation: It is a systematic process of critical changes in product design,
its development, promotional and pricing aspects in the market. The main aim of this method
is to sustain its product and services in the longer run.
Strategic competitive advantage: This is a significant approach where a company trying to
offer greater value of its customer at the lower cost as compare to its rival firms and gaining
advantage from the market in the longer run (Moon Miller and Kim, 2013).
Marketers of this era are clearly aware about the importance of innovation through new
product development which is highly important for remaining competitive. Innovation affects
different areas of marketing which are as follows:
 Marketing research: By taking the help of innovation, company can identify the most
sophisticated techniques for identifying and tracking customer behaviour and also, it
can analyse client's related data in the most effective manner (Gupta and Malhotra,
2013).

 Targeting markets: Innovation helps company in replacing person-to-person to mass
merchandising. Also, it helps customer service to build and manage positive
relationships with public. Innovation allows organisation to fast response to client's
needs and wants.
 Product: Goods are known as most important element of marketing, innovation helps
company in producing highly developed products and services (Luo, 2011). By
incorporating innovation into existing goods/services, company can increase their
value by offering improved quality, features and reliability at a lower price.
 Promotion: By taking the help of innovation, organisation can improve its
promotional and advertisement activities. It makes easier for sellers to offer product
suggestions.
 Distribution: Innovation helps in improving distribution process also it has introduced
effective way of distribution which is electronic commerce. Also, it helps in allowing
better control on inventory management (Frow and et. al., 2015).
 Pricing: Innovation have introduced dynamic pricing techniques, through which
company can generate high level of financial profit.
4Ps of Innovation: These are follows as under:
Product innovation: According to this concept, organisation should make some
changes in its current products like modification in product design, packaging, quality and so
on. By doing this Wringley can easily attract huge number of customer can also can
differentiate its products, product innovation and development can provide high competitive
advantage to this organisation (Mariadoss, Tansuhaj and Mouri, 2011).
Process innovation: by making changes in the process of producing and delivering
products or services, organisation can improve its procedures and also can develop business
performance. For this, Wringley can take help of various manufacturing methods and
equipment’s to produce tasty chewing gums.
Position innovation: By performing CSR activities and manufacturing healthy
chewing gums Wrigley can improve its market position which can help it’s in achieving
competitive advantage.
Paradigm innovation: This last P of innovation. It helps in redefining dominate
paradigms of company. So for better growth and development, organisation can produce
some new products or can reposition its current products. Wringley can manufacture new
chin gums with new flavours which has not been produced by any other company.

Generic strategies: Competitive advantage is that concept which makes an enterprise
financially strong with market place (Wu and et. al., 2015). Organisation can achieve
competitive advantage only by taking help of innovative actions. As, it helps company by
providing new technologies and unique ways of operating business activities and practices.
With the help of innovation concept, business enterprise can generate new idea, produce and
procedure. Generic strategy plays a prominent role in order to gaining competitive advantage
in the market. Wringley can use this approach which are mentioned below:
Cost leadership: This is one of the approach where an organization required to offer
their products. Wringley can use economies of scale which helps to produce their product at
lower price. It will help to increase sales and revenue and create competitive position in the
market.
Differentiation strategy: It involves the products and services of company which is
different and more reliable from their competitors in terms of features, functionality,
durability and brand image that attracts the customers toward the organisation. Offering
unique and different features associate with the products and services help the company to
attract large number of customers which helps in competing with their rival company.
Therefore, Wrigley company should need:
 To focus on developing the product in more innovative way through conduct research.
 To have capability to provide standard quality of products and services.
 To advertise the products and services in order to help the market in understanding the
benefits of using their products.
Focus strategy: The company should need to focus on the needs and requirements of
the targeted customers and after evaluating them the company should implement strategies in
order to fulfil their requirements such as reducing cost of their products, offering good quality
etc. which help the company to build strong competitive image in market as well as also
helps in building strong loyalty among the targeted customers. Mostly the children are the
targeted customers of Wrigley who buys their product on large scale so the company should
need to focus on their taste and preferences and develop accordingly in order to attract them
to purchase.
CONCLUSION
From the above mentioned report it has been concluded that the significance of
marketing innovation and competitive strategic advantage. This task explained about the
innovation effects in different area of marketing and its role in the success for the enterprise.

Further, this report also discussed about the 4Ps of innovation which involves product,
process, position and paradigm innovation.

REFERENCES
Books and Journals
Radford, S. K. and Bloch, P. H., 2011. Linking innovation to design: Consumer responses to
visual product newness. Journal of Product Innovation Management. 28. pp.208-220.
Mariadoss, B. J., Tansuhaj, P. S. and Mouri, N., 2011. Marketing capabilities and innovation-
based strategies for environmental sustainability: An exploratory investigation of B2B
firms. Industrial Marketing Management. 40(8). pp.1305-1318.
Moon, H., Miller, D. R. and Kim, S. H., 2013. Product design innovation and customer value:
Cross‐cultural research in the United States and Korea. Journal of Product Innovation
Management. 30(1). pp.31-43.
Luo, L., 2011. Product line design for consumer durables: an integrated marketing and
engineering approach. Journal of Marketing Research. 48(1). pp.128-139.
Frow, P., and et. al., 2015. Managing co‐creation design: A strategic approach to
innovation. British Journal of Management. 26(3). pp.463-483.
Wu, D., and et. al., 2015. Cloud-based design and manufacturing: A new paradigm in digital
manufacturing and design innovation. Computer-Aided Design. 59. pp.1-14.
Garrigos-Simon, F. J., Lapiedra Alcami, R. and Barbera Ribera, T., 2012. Social networks
and Web 3.0: their impact on the management and marketing of organizations. Management
Decision. 50(10). pp.1880-1890.
Billington, C. and Davidson, R., 2013. Leveraging open innovation using intermediary
networks. Production and Operations Management. 22(6). pp.1464-1477.