A Project Report On

MARKETIN INNOVATION

PACIFIC BUSSINESS SCHOOL

For The Partial Fulfilment of Two Year Full Time Post Graduated Program (PGP) 2010-2012

Submitted To:Submitted By Mrs. Shikha Bhargava Mukul Bhanawat

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(Asst.Prof.) M.B.A. Part-1

PREFACE
If you wish to plan for a year, sow seeds, if you wish to plan for ten years, plant tree. If you wish to plan for a lifetime, develop a man. All the learnings in our MBA course is practice. However, hands-on experience in the Reality of world during our course is very necessary to be Learn about the current market issues and what was happen in the market in current scenario. Because MBA is totally Based on the market conditions.

This Report is based on the MARKETING INNOVATION in which we learn the what are the market condition and how innovation is help full in the current market and what are the ways the take to make there market strong and innovative for the customer.

I started first phase of my project by doing a market analysis, after that I started with the second phase which involved all the official sites and the news papers and the magazines.

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In this report I have explained what undertook based on research and my personal experience. I have also tried to understand what are the market and how its effect the life of the people and how innovation help to make the best market as an additional part of my study.

ACKNOWLEDGEMENT

With the completion of this Project my experience was excellent. The task of undertaking the Knowledge through a dynamic experience. With the constant guidance, valuable suggestion, timely help and heart warming encouragement rendered to me by Prof. B.P. Sharma (Director) and also to give a regular and moral support by Mrs. Shikha
Bhargava (Asst.Prof.) with

all other Proffers of served as an

marketing

team,

the

College

excellent learning platform. Pacific College allowing me to undertake the project & making available all facilities for success full completion of the study besides me to pursue the study on proper line.

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In end, I also wish to thank all those names have not been mentioned above but have directly or indirectly helped me in various ways in successfully carrying out the project.

INDEX

PREFACE .-2ACKNOWLEDGEMENT -3What is marketing................................................................. ...............-5What is Innovation -6-

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What is Marketing Innovation...-8The Yin-Yang Evidence...-9Similarities between Innovation and Marketing.-10The Creation of the Customer.-11Marketing mix... -12Four P's .-13Marketing - from "4 P's" to "4 C's" to "4 V's"..-13Product vs. Consumer vs. Validity....-14Price vs. Cost vs. Value....-15Place vs. Convenience vs. Venue-17Promotion vs. Communication vs. Vogue.-19-

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Conclusion ...-21-

What is marketing?

Marketing is "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." Marketing is a product or service selling the related strategy overall that activities. It generates underlies sales

techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one

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of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy effectively than competitors. these more

The

What is Innovation?
term innovation derives from the Latin

innovatio, the noun of action from innovare. The Etymology Dictionary further explains innovare as dating back to 1540 and stemming from the Latin innovatus, pp. of innovare "to renew or change," from in- "into" + novus "new".

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The central meaning of innovation thus relates to renewal or improvement, with novelty being a consequence of this improvement. For an improvement to take place it is necessary for people to change the way they make decisions, or make choices outside of their norm. An invention is useful only to the inventor unless it is offered to the public, however niche that public may be. If the invention improves some product, process or service for the public, then that invention transforms into an innovation. An innovation can be big or small. Brand-new or just a bit different, it doesn't matter. An innovation can be clearly complex or seemingly simple. Innovations are often thought of in terms of technical achievement, but can also be a design. The type, industry and style of innovation are irrelevant; an innovation's impact determines its qualification. The presence of a genius can help with innovation it may speed up the end result by having a person who can see and make the future happen. However, innovation is more than the work of any one "Einstein." Innovation involves the taking of

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the work of an individual (or team) of inventors and taking it to a broader audience. The future of many businesses depends upon their ability to innovate. spreads Competition The is ability fierce. of a Knowledge quickly.

company to not only keep up with its current business practices, but to exceed its own and its competition's expectations are critical to survival.

What is Marketing Innovation?

A marketing innovation is the

Definition:

implementation of

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a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. Context: Marketing innovations are aimed at better addressing customer needs, opening up new markets, or newly positioning a firms product on the market, with the objective of increasing the firms sales. The distinguishing feature of a marketing innovation compared to other changes in a firm's marketing instruments is the implementation of a marketing method not previously used by the firm. It must be part of a new marketing concept or strategy that represents a significant departure from the firms existing marketing methods. The new marketing method can either be developed by the innovating firm or adopted from other firms or organisations. New marketing methods can be implemented for both new and existing products.

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The Yin-Yang Evidence Let me first treat you to two lists of weird symmetries and similarities between marketing and innovation, in the Lincoln-Kennedyassassination similarities mode. I want to convince you there is a pattern here and, unlike the LincolnKennedy stuff, that there is a reason for the pattern. Lets start with the similarities, and then look at the polarities.

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Similarities between Innovation and Marketing

Both functions are systematically misunderstood, compared to other business functions. Innovation is often reductively understood as invention and R&D, while marketing is often reductively understood as promotion and advertising. By contrast, nobody seriously misunderstands what HR, accounting or manufacturing are about. Ideally, both are in a balance: the optimal ratio of marketing spend to engineering spend in a product launch (known as the Grabowski Ratio) is 1. Both functions lay claim to the DNA of the organization. Marketing owns the overt form, the brand, that integrates the self-image and story of the company, while innovation owns the individuation behind the brand, within the society of corporations. Both functions frame their basic processes in terms of an increasing certainty funnel metaphor. In innovation, the funnel narrows from basic R&D through various stage gates to successful while in commercialized product/service

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marketing, the funnel narrows from a customer who is unaware of your offering, through stages of awareness, interest, purchase, repeat purchase and the ultimate stage, loyalty. In both cases, the fundamental dynamic is a weeding out, a filtration. Of ideas in one case, of people in the other .

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The Creation of the Customer

To understand this yin-yang stuff, we have to tease out the substance behind the create a customer bit from Druckers famous quote. What exactly is this deified construct known as the customer? Why do we speak in terms of reverential awe? Why do we impute Godly attributes to this creature (omniscience: the customer is always right, omnipotence: the customer will ultimately decide.)? Why does this creator-like creature need to be created rather than discovered? You and I are customers, and I dont exactly feel Godly when deigning to buy socks at the store. Rather small, controlled, overwhelmed by choices and intimidated actually.

Marketing mix

The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of

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ingredients",

who

sometimes

follows

recipes

prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.[1] A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use.

Four P's

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Marketing - from "4 P's" to "4 C's"

to "4 V's"
While I was studying marketing in the university, the "4 P's" of marketing approach was the core of the subject. Later, BOB LAUTERBORN, professor of advertising at the University of North Carolina discovered the "4 P's" has some major flaws that result in many product launching failures. He proposed a new set of "4 C's" marketing principle to replace the traditional "4 P's".
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In our fast moving age of internet time, the "4 C's" is also facing with some dilemma and a new marketing tool of "4 V's" is being contemplated for application.

Product vs. Consumer vs. Validity.

The old Product approach is to develop and produce a product as good as possible to market and make sales. The Consumer approach is to study consumer wants and needs, and to manufacture products in response to those needs. Validity discover that product with great consumer needs may not be valid and need to be addressed. We have recently cases of product with great consumer demand such as toys and foods from China that needed to be moved out from the shelves due to high risk nature of the products. Marketing should not only consider the wants and needs of the consumers, but also other product factors of safety, environment, and social issues, viz. Validity. Many internet products may be of great demand to consumers but should not be marketed due to age inappropriateness, to cite an example.

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Examples

Packaging

methods

adopted

by

many

companies like Tide, Parachute, Surf, etc.

In one product different kind of varieties given by companies on the basis of taste, preferences.

Advantages
Understanding Easily

consumers need and wants.

address the exact need of consumers.

Accelerates speed-to-market. Increases likelihood of product success. Introduces discipline into on ordinarily chaotic process. Reduces re-work. Achieves efficient and effective allocation of scarce resources. Disadvantage The main problem with the stage-gate process is the potential for structural organization to interfere with creativity. Some experts believe that overkill of structure can cause creativity and customization to be put on the back.

Price vs. Cost vs. Value

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Price charged to consumer is no longer a sufficient marketing parameter for it is only one part of consumer cost. If we sell product on e-bay, for example, we have to consider the cost of currency exchange lost and exchange risk to the client. Hence, a co-net work of Paypal was created to lower consumer buying cost. Or driving to eat a bowl of noodles would incur additional driving cost, etc. Value marketing go one step further to advocate that lowest price and considerate cost are not sufficient in today's marketing solution. As more people are getting higher up in their standard of living, people are more value conscience of what they eat, what they wear, what they drive, etc. Also, as population age distribution is shifting from the young to the old where product value is emphasised, marketing should look more to value than just the price and cost. Example

TATA NANO

Advantages Cost effective (Development costs reduced). Increases system development speed.

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Assists to identify any problems with the efficacy of earlier design, requirements analysis and coding activities. Helps to refine the potential risks associated with the delivery of the system being developed. Various aspects can be tested and quicker feedback can be got from the user.

Disadvantages

Credit sales and large amount of time for repay. Only user based service. Discount allots action in pick time. Due to speed reduce the quality of product. More discount more cost of production affected

Place vs. Convenience vs. Venue

The whole Thai centuries old retail market is almost totally wiped out in a short time span of 3-4 years because of the shift of marketing from Place to Convenience. A distribution channel of providing just a place to buy is no longer competitive. The convenience stores such as the ubiquitous 7Eleven or giant super stores like Tesco, Big-C, have seized the retails sale by providing conveniences of all kind to customers.

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Convenience needs to take one step higher up to the Venue level. Venue is not only providing place for clients to come, it is sales to your home. You can really shop while having your pajamas on. Pizza home delivery has snatched up a big portion of food sales all over the world. Food is just at your finger tips. How about internet sales, internet banking, or what have you? May be we should provide our customers with a buying venue of electronic gadget of some kind instead of a place with conveniences.

Examples

Pizza hut E-banking

Advantages

Direct approach to customer. Time saving. Consumer oriented. Cover the maximum customers in under one roof.

Disadvantages
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Old retail market Only focus on the big retail market like mall, big companies. Not fixed medium for sales its based on the requirement. They have only direct selling no retail market for sale.

Promotion Vogue

vs.

Communication

vs.

Lauterborn advocated communication instead of promotion. Promotion is one way street advertisement in telling what you think is best in the promoting product. Communication, however, applies two ways traffics between the buyer and seller to advertisement. It is an "interactive" program using phone, web site, etc. to get response from advertisement.

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Vogue requires more than just getting a message across and 2 ways communications. It is saying that to make an advertisement successful, it must have vogue or in trend. It must be popular, acceptable, and has great public favour. Like fashion, advertisement has a popular fashion trend. This must be applied to squeeze out the best of promotion. Personally, I see the three marketing sets of "4 P's" to "4 C's" to "4 V's" are just the same old wine Ps' in a new bottle C' and newer bottle "V'. How well the different tool performs not really of the tool by itself but the person who uses it. So which ever tool you choose, you should learn it thoroughly and apply it wisely. Examples Ads in mall Ads on lorry Ad on bags Mobile and net ad Advantages Getting best for promoting the product.

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 Best for two way interaction.

Easily getting attention of consumer.

Disadvantages Promotion is one way street advertisement.

Communication between the

applies buyer

two and

ways

traffics to

seller

advertisement. Telephone and web due to that the miss understanding was create. Vogue requires more than just getting a massage in these the two way communication was done do the both parties will there is a problem to set time

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 Conclusion
If youre trying to enhance your marketing

program, or create one from scratch, keep this methodology in mind: innovation, quantification, orchestration, documentation. This process will ensure constant growth and improvement in your marketing results. All sales and marketing personnel should be utilizing and implementing the latest innovation in all they do. This methodology now becomes your control. Your next innovation is only effective if it produces better results than your control. Dont just take my word for it, look at most major brands or category leaders. Under the hood, youll find systems for innovation, ways of testing, measuring, implementing, and documenting in a seemingly effortless fashion. Improving your process of orchestration is also extremely important. The faster you implement your innovation across the business in a consistent fashion, the better your results become. Wal-Mart is a master of this. If there is an innovation in one store, it is quickly shared and

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implemented with all store managers across the U.S. The result is innovation on a massive scale which has a direct and positive influence on ROI.

BIBLIOGRAPHY
WEBSITE

websitemarketingnow.com Forrester startupnation.com business-strategy-innovation.com adage.com business-strategy-innovation.com fundingyournonprofit.com blogs.e-bim.com business901.com www.mifeurope.com

JOURNALS

[HBR Innov] Harvard Business Review on Winning at New Products by Robert

Innovation (2001).

Cooper.

Dolan & Simon (1996). Power Pricing. New York: The Free Press. Doyle (2000). Value-Based Marketing. New York: Wiley. Kotler (2003). Marketing Management: Analysis, Planning, Implementation & Control, 11th Edition. Englewood Cliffs: Prentice-Hall.

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Mahajan, Muller & Wind (Eds.) (2001). NewProduct Diffusion Models. Boston: Kluwer.

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