2. MARKETING AND INNOVATION
“There is only one valid definition of
business: to create a customer…
Because it is its purpose to create a
customer, any business enterprise has
two – and only these two – basic
functions: marketing and innovation”
Druker P.F., The Practice of Management, 1954
3. INNOVATION AND MARKETING
INNOVATION MARKETING
New product, new Create value for
process or major the innovation
technological Increase the value
modification to Communicate the
products and value
processes
4. 3 MAIN MARKETING APPROACHES
Production oriented approach - dominant
from the beginning of the industrial
revolution to the 1930s
Sales oriented approach - dominant from the
beginning of the 1930s to the period
following the World War II
Marketing oriented approach - dominant
from the 1960s onwards (although the sales
and production approaches still exist today)
5. THE MARKETING CONCEPT
• It starts from the market
• It focuses on the customers’ needs and
wants
• It implements a coordinated program to
respond to these needs
• It realizes its gain from the customers’
satisfaction
6. SCIENCE PUSH VS. DEMAND PULL
Science Push (50s and 60s) approach
suggests that innovation proceeds linearly
scientific discovery invention
manufacturing marketing
discoveries in basic science were the
primary source of innovation, which were
then translated into commercial
applications
7. SCIENCE PUSH VS. DEMAND PULL
Demand Pull (mid 60s) approach argues that
innovation originates with unmet customer
needs:
customer suggestions invention
manufacturing
research staff would develop new products
in efforts to respond to customer problems
or suggestions
8. THE CHAIN-LINKED INNOVATION
MODEL
Source: “An Overview of Innovation”, Stephen J. Kline and Nathan Rosenberg, 1986
9. THE AMA’S MARKETING
DEFINITION
“Marketing is the activity and processes
for creating, communicating, delivering,
and exchanging offerings that have
value for customers, clients, partners,
and society at large.”
American Marketing Association (2008)
10. THE INNOVATION VALUES
The value offered by an innovation is the result
of many elements and is strongly influenced
by both:
• Innovation’s Standalone Value
• Network Externality Value
• Ease of use, etc.
11. THE INNOVATION VALUES
The Innovation’s Standalone Value includes
such factors as:
• Functions the technology enables to perform
• Aesthetic qualities
• Ease of use, etc.
12. THE NETWORK EXTERNALITY
VALUE
The Network Externality is the value of the
innovation created by:
• The size of the technology’s installed base
• The availability of complementary goods
13. Multilingual Marketing
Catherine Gason
Consultant & Virtual Assistant
For more information, visit my new website
www.catherinegason.com
Catherine Gason
Multilingual Marketing
Consultant & Virtual Assistant
English Français Italiano
e-mail: catherine@catherinegason.com
www.catherinegason.com
