Strategic Competitive Advantage: The Impact of Marketing Innovations

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This essay examines the critical role of marketing innovation in developing and safeguarding a company's strategic competitive advantage within the dynamic global market. It emphasizes that in an environment characterized by rapid changes and intense competition, businesses must adapt to both internal and external factors to maintain their market position. The essay highlights that creating a unique image in the eyes of target customers is essential for gaining a competitive edge, which can be achieved through continuous innovation in products and services. Furthermore, it underscores that effective innovation involves leveraging the full potential of the workforce and responding to market saturation by offering greater customer value through reduced prices and improved services. Ultimately, the essay concludes that marketing innovations, including creating new markets with improved knowledge, are vital for protecting a company's competitive advantage and ensuring its long-term success. Desklib provides access to similar essays and study resources for students.
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Running head: ESSAY ON MARKETING INNOVATIONS
Marketing Innovations
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1ESSAY ON MARKETING INNOVATIONS
MDI TASK 1
Discuss to what extent marketing innovation is important to developing and protecting a
company’s strategic competitive advantage
The global market is characterized by the rapid changes that have occurred over the years
in order to combat with the constantly changing needs and requirements of the market.
Therefore, the business organizations need to identify and understand the requirement of the
internal and external features of the new atmosphere and adapt them to the required changes. As
a result, the business organizations are able to maintain a position in the market as well as face
the fierce market in the market. As commented by West, Ford and Ibrahim (2015), gaining
competitive advantage puts the business organizations in favorable conditions thereby, getting an
upper hand or superior position in the market sector. However, as argued by Lew and Sinkovics
(2013, pp.13-38), having a competitive advantage does not necessarily signify the superior
position of the company, as it needs to deliver appropriately to the customers.
One of the best possible ways of gaining competitive advantage and protecting the
company’s strategic advantage is by creating a unique image in the eye of the target customers.
As mentioned by Schilke (2014, pp.179-203), as a result, the companies must consider
innovating the products or services offered by them to the customers. This provides an
opportunity for the business organizations to stand out from the competitors available in the
market. However, as criticized by Hinterhuber and Liozu (2014, pp.413-423), being innovative
does not only signify the use of the available expertise working for the company but it signifies
considering and using the capabilities of the workforce at their best. This provides an opportunity
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2ESSAY ON MARKETING INNOVATIONS
for the business organizations to generate the process of innovation and launching it in the
market efficiently.
Over the years, the different business sectors have seen a rise in similar business organizations
offering similar products and services to the target customers. As a result, the customers have
plenty of options and alternatives before purchasing a particular product or service thereby,
making it difficult for one single organization to generate business (Potocan, 2016). Thus, market
innovation is the most effective way of sustaining in the fierce market and protecting the
company’s competitive advantage. In addition to, market saturation has led to market
innovations thereby, aiming towards gaining a superior position in the market.
Marketing innovation provides an opportunity for the business organizations to offer
greater value to the customers compared to the competitors. As a result, the business
organizations are able to provide various benefits to the customers such as reduced price and
improved services. According to Hinterhuber and Liozu (2014, pp.413-423), the strongest
competitive advantage is a strategy that cannot be imitated by the other companies in the market.
The only constant thing is the change that the market encounters due to the ever-changing
demands and needs of the customers. Thus, marketing innovations help in protecting the
competitive strategy for the business organizations. The business organizations ensure market
innovations by creating new markets by using the same existing knowledge with some
improvements and modifications (Camison and Villar-Lopez, 2014, pp.2891-2902). Thus,
creating new markets provides an opportunity for the business organizations to protect the
competitive advantage thereby, providing unique product and services to the target market.
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3ESSAY ON MARKETING INNOVATIONS
References
Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business research, 67(1),
pp.2891-2902.
Hinterhuber, A. and Liozu, S.M., 2014. Is innovation in pricing your next source of competitive
advantage?. Business Horizons, 57(3), pp.413-423.
Lew, Y.K. and Sinkovics, R.R., 2013. Crossing borders and industry sectors: behavioral
governance in strategic alliances and product innovation for competitive advantage. Long Range
Planning, 46(1-2), pp.13-38.
Schilke, O., 2014. On the contingent value of dynamic capabilities for competitive advantage:
The nonlinear moderating effect of environmental dynamism. Strategic management
journal, 35(2), pp.179-203.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press, USA.
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