Innovation/ Chapter 11

Question 1

what are some misconceptions about innovation?

Answer 1

• confusion between ‘innovation’ and ‘invention’

- innovation is not all about science and technology creating new opportunities

Question 2

what is innovation/

Answer 2

innovation is making changes to something already established

Question 3

what are the 3 approaches to innovation?

Answer 3

• opportunistic - go for it, strong personal belief, minimal planning
• intuitive- based around goals and outcomes. Looking and following ideas and new approaches as they emerge. can be flexible
• incremental - intention to go into business but step-by-step. steps related to risk reduction or maintaining existing commitments.

Question 4

what forms of disruptive activity is there?

Answer 4

• low end disruption occurs when the rate at which products improve exceeds the rate at which customers can learn and adopt the new performance e.g. from floppy disk, to cd, to hard disk, to icloud
• new market disruption occurs when a product that is inferior by most measures of performance fits a new or emerging market segment e.g. electric vehicles

Question 5

what is key success factors for innovation?

Answer 5

• creating and delivering added value is important
• speed to market counts- launched quickly
• product inferior perceived value cannot be compensated for with high communication spending

Question 6

what types of product replacement strategies is there?

Answer 6

• facelift- minor product changes with little or no change to the rest of the marketing mix
• inconspicuous technological substitution- major technological change with little/ no alteration of other elements in marketing mix
• re merchandising- modification of name, promotion, price, packaging, and distribution