Innovative marketing

Today's economy is significantly determined by globalization, frequent changes, as well as, the increasing importance of knowledge application through the successful execution of innovation. These factors directly affect competitive advantage primarily within organizations that have developed the ability to improve the level of efficiency and effectiveness with the continual development of the innovation performance. In this new economy, organizations that can develop in a short period of time and profitably, applying it in all areas of business, reach competitive advantage over the competition. The growing importance of innovation in relation to achieving a competitive advantage has determined a brand-new concept and innovation classification. Nowadays, the term innovation means not only a significant improvement in process and product technology, but it refers more to the innovation process in the field of human resources, especially in marketing management.

A well-known author in the field of innovation management, Trott, (2008, p. 15) defines innovation as a set of activities related to the process of gathering ideas, technological development, marketing, production of new or improved products and production processes and equipment. Until recently, innovation included improvement in the production processes and new product development, while today it has changed to includes innovation in terms of organization and marketing innovation (OECD, 2005, pp. 9-25). In the modern economy organizations that understand the new rules of marketing develop relationships directly with consumers; the main objective of marketing innovation is to improve the identification process and satisfaction of customer needs (Scott, 2013). By implementing new marketing methods and activities, the organization establishes a closer relationship with customers whereas the customers become promoters of the organization achieving the goal that consumers are loyal to the organization and recommend it to their reference groups. Other objectives of marketing innovation are: new market penetration, improving the visibility and presence of the product in the market, as well as, attaining large sales frequency.

Marketing mix

The basic marketing mix elements (the 4P - product, price, place, and promotion) are a combination of components through which organizations achieves their own marketing objectives and reach competitive advantage (Kotler, 2000). Marketing innovation is based on these four instruments that are inter-related and focus on meeting the consumer needs (Ferrell and Hartline, 2011, pp. 18-19). Marketing innovation involves the use of new marketing strategies, concepts and methods that have never been implemented prior. They are based on the following (Stošić, 2007, pp. 3-20):

• Changes in form or packaging
• New pricing strategies
• New distribution channel
• New promotion - social media

Design Innovation

Marketing innovation in terms of product design includes substantial changes in terms of packaging form or product style without affecting function of the product (Stošić, 2007, pp. 3-20). Marketing innovation of the design would include a completely new design in order to achieve a special appearance in order to have a distinctive look/appearance of the product. Marketing innovation in terms of product packaging would include changes in the following elements (Trott, 2008, pp. 424-438): extensive improvement of the packaging protective function, materials, reliability and satisfaction, overhaul of package identification that includes additional information on the use, promotional/ sales actions, and improvement to the package shape and size.

Pricing Strategy

Marketing innovation in pricing involves the use of a completely new pricing strategy that the organization applies for the first time in its products/services in a market (OECD, 2005, pp. 9-25). For example, innovation may be discounts in the store for consumers that have certain credit score, or preferential cards issued by organizations. Additionally, marketing innovation may be the introduction of a new interactive method of "online" pricing. "Online" service allows the consumer to choose products on the organization's website and receive a price that is formed exclusively based on individually selected product characteristics (OECD, 2005, pp. 9-25).

Distribution channels

Introduction of new distribution channels includes entirely new marketing methods and selling products/services to customers. An examples of marketing innovation is the introduction of licensing products, franchise, exclusive sales, and direct sales.

Marketing innovation is utilizing new marketing method to promote products or services of an organization. Examples of brand-new marketing promotion method would be the introduction of an entirely new kind of media - promoting products/services in a feature film, a TV show or on the Internet (social networks like Facebook, MySpace, Twitter) (OECD, 2005, pp. 9-25).

It is important to direct part of the "marketing" money to the gathering places of their consumers - such as the Internet and social media specially to achieve long-term brand positioning (Manić, et al., 2009, pp. 205-214). Consumers are more connected, and they are more active and more demanding. In our modern digital society, marketing innovations relate to the explosion of the Internet increasingly gain in importance. In recent years Internet marketing and social media have become a "new hybrid component of integrated marketing communications that allow organizations to establish strong relationships with their consumers (Mangold and Faulds, 2009, pp. 357-360).

Examples of Innovative marketing

• Gamification: Gamification is the use of gaming elements and motivational techniques to engage customers. Companies use gamification to encourage customers to complete certain tasks, such as visiting a website, making a purchase, or referring a friend. For example, a company could offer rewards for customers who complete certain tasks or activities, such as points, discounts, or exclusive offers.
• Influencer Marketing: Influencer marketing is a type of social media marketing that focuses on leveraging the influence of influential people in a particular niche or industry. Companies use influencer marketing to promote their products or services to a wider audience, often using influencers to reach and engage their target audience more effectively. For example, a company might partner with an influencer to create content that promotes their product or service.
• Content Marketing: Content marketing is a type of marketing that focuses on creating and distributing valuable content to attract and retain customers. Companies use content marketing to educate customers about their products and services, as well as to build relationships with potential customers. For example, a company could create blog posts, videos, or social media posts about their products or services to inform and engage potential customers.

Advantages of Innovative marketing

An introduction to innovative marketing is that it is the process of using creative strategies to capture the attention of potential customers and differentiate a product or service from the competition. This can be done through the use of new and unique ideas and approaches. The following are the advantages of innovative marketing:

• Increased Visibility: Innovative marketing allows businesses to stand out from the crowd, giving them increased visibility and the ability to attract more customers. By utilizing creative strategies, businesses can draw attention to their products or services and make them more appealing to potential customers.
• Enhanced Brand Identity: Innovative marketing allows businesses to create a strong, distinct brand identity. By creating a unique, memorable brand identity, businesses can create a lasting impression on potential customers and increase their brand loyalty.
• Improved Customer Engagement: Innovative marketing helps businesses to engage with customers in a more meaningful way. Through creative strategies, businesses can create an emotional connection with their customers, which can improve customer engagement and create a more positive customer experience.
• Cost Savings: Innovative marketing strategies can help businesses save money by avoiding costly traditional marketing campaigns. By utilizing different marketing channels, businesses can target specific customers and save on traditional marketing costs.
• Increased Customer Retention: Innovative marketing can help businesses to retain customers by creating a unique product or service that customers will be more likely to remember and come back to. By using creative strategies, businesses can create a memorable product or service that customers will be more likely to purchase again.

Limitations of Innovative marketing

Innovation marketing can be limited in the following ways:

• Time: Innovation processes may take a long time to develop, especially if they involve complex modifications of existing products or services.
• Resources: It can also be expensive or take a lot of resources to innovate. This can include money, personnel, and other resources.
• Inconsistent customer demand: Innovation marketing can be difficult to implement if the customer demand is inconsistent, as it can be hard to predict what the customer wants.
• Risk: There is always a risk that an innovation will fail, meaning the resources invested could be wasted.
• Knowledge gap: A lack of knowledge or understanding of customer needs and trends can limit innovative marketing efforts.
• Regulatory barriers: Regulatory barriers can limit certain types of innovations from being implemented.

Other approaches related to Innovative marketing

In addition to the innovation process in the field of human resources, other important approaches related to innovative marketing include:

• Creative problem-solving, which requires the use of unique solutions to solve complex problems. This type of approach focuses on identifying the root cause of a problem and generate solutions tailored to address it.
• Customer experience design, which involves the use of customer experience data to create personalized experiences for customers. This approach involves gathering customer feedback and analyzing it to identify areas for improvement.
• Digital transformation, which involves the use of digital technologies to drive organizational change. This approach focuses on leveraging data, analytics, and automation to improve customer experience, operational efficiency, and cost savings.
• Behavioral marketing, which focuses on understanding customer behavior and using it to design more effective marketing campaigns. This approach involves gathering and analyzing data to identify customer preferences and develop strategies that target their needs.

In summary, the approaches related to innovative marketing include creative problem-solving, customer experience design, digital transformation, and behavioral marketing. These approaches all focus on leveraging data and technology to create more tailored and effective marketing campaigns.

Innovative marketing — recommended articles

Marketing innovation — Promotion mix — Areas of marketing — Marketing advantage — Marketing department — Route to market — Creative strategy — Consumer orientation — Business model canvas

References

• Manić, M., Riznić, D., & Ostojić, S. (2009). Innovative marketing and sales strategies in the conditions of the global crisis. (pp. 205-214). Beograd: Megatrend University.
• Organisation for Economic Co-operation and Development, & Statistical Office of the European Communities. (2005). Oslo manual: Guidelines for collecting and interpreting innovation data (3rd ed.). Paris: OECD Pub.
• Scott, D.M. (2013). The new rules of marketing & PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly (4th ed.). Hoboken, N.J: John Wiley & Sons.
• Stošić, B. (2007). Innovation management: Expert systems, models and methods. Beograd: Faculty of Organizational Sciences.
• Trott, P. (2008). Innovation management and new product development. Harlow, England: Financial Times/ Prentice Hall.
• Ferrell, O.C., & Hartline, M.D. (2011). Marketing strategy (5th ed.). Mason, OH: South-Western Cengage Learning.
• Kotler, P., & Keller, K. (2006). Marketing management (12th ed.). New Jersey: Prentice Hall.
• Mangold, W.G., & Faulds, D.J. (2009). Social media: Thee new hybrid element of the promotion mix. Business Horizons, 52(4), 357-360.

Author: Daria Boiko, Kaleigh Krieger