Marketing innovations are essential to increasing the chances of the product succeeding in the market especially when the difficulty of introducing a new product is common. Annually, 80% of new products have failed to survive in the market. Even the big players are not immune to this problem. For instance, The Coca-Cola Company had encountered this problem when they introduced New Coke, the lack of market research lead the product into failure.
Most of the problems arise when the product’s sales flop at an early stage. Especially when it’s not well-received by the target customers. Hence, marketing has to be involved because it will align the product with the needs of customers and the market.
You can learn about marketing innovations via books, online courses, or marketing events. However, in this article, I will show you the benefits of implementing new marketing innovations.
What is Marketing Innovations?
As the name implies, marketing innovations are the act of implementing never used before marketing methods. The change usually pertains to the components of the marketing mix, which is the product, price, place, and promotion.
So, the practice of marketing innovations should revolve around innovating the different marketing categories, such as promoting the product in an unconventional way, making a unique product design, or set an unusual pricing strategy.
Moreover, it can be used as a way to evaluate the current product and its marketing method, then align it with the needs of your target audience.
Above all, it should provide increased profitability to the business.
What Are the Benefits of Marketing Innovations?
Aside from the concept, I will tell you the benefits of implementing marketing innovations when starting a product of your own.
1. Reveal Customer Needs
One of the biggest mistakes that often lead a product into failure is the lack of customer information. Before creating the product, it’s important to keep in mind that the function of the product must be based on solving the customers’ problems.
If a business doesn’t even know what their customer needs are, how is it possible for the product to solve their problems? To build a valuable product, it’s essential to pay attention to its value proposition.
By knowing what the customer needs, the business will get facts that can be used as fundamentals to validate their ideas. This is crucial because translating an invalid idea can drive the product into the wrong path.
Then, how to discover information about the target customers? You can do this by conducting market research. There are some common methods which are often used, such as arranging surveys via questionnaires, organizing focus group discussion with potential customers, or conducting personal interviews.
2. Discover the Market Potential
Market research not only provides information about the customer’s needs but also about the potential of the entered market.
If an innovative product which has great features is entering a potentially bad market, then the result would be bad regardless of how good the product is.
Keep in mind that not all of the needs must be fulfilled. Because you should only focus on your target customers. Don’t assume their needs unless the information comes from market research.
In order to get the right target market, you have to consider a lot of aspects. Such as the scale of your targeted market share, the competitors, substitute products, and support from parties like suppliers. Use Porter’s five forces as a tool to evaluate your target market and industry.
3. Build Better Positioning
Positioning is the act of placing an intended image of the product to the customers. The right positioning can be built by collecting information on customer needs.
There are several aspects affected by positioning, such as the features of the product, the promotion methods, pricing, and the channel used to reach the targeted audience. All of the aspects are aligned to support the same goal – building the image for the product.
Why does the alignment matter? The image of the product must reflect what the customer gets. For example, Let’s say there’s a business which claims they only offer affordable products, but in reality, they set expensive options in their pricing list. It could count as failed positioning.
Therefore, if an innovative product is supported with great positioning, it will attract the right target market.
4. Identify Proper Marketing Channels
The proper marketing channel can be used as a tool to implement new marketing methods.
Using the wrong channel that does not fir your targeted audience will give a bad impression since the product would be hardly accessible for the customers. For instance, it would be better to market fashion products in a fashion blog rather than doing so on an irrelevant channel.
The market research has to include information regarding the target customer’s channel preference. So it would be easier to determine the right channel for the product. Furthermore, the decision can be more accurate if it’s based on the customer journey model.
Customer journey is a tool that simulates everything the customers go through when they interact with the business. Starting from finding the business to maintaining a relationship with the customers. You can use this tool to put yourself in the customer’s shoes and then decide which channel is the most efficient.
5. Create a Relevant Product
Implementing a new marketing method can help you to create a relevant product. If you’re doing your market research, you should be able to understand what is needed from a consumers perspective, from its design to the price.
Keep in mind that a new product has to be solution-oriented. A new product is expected to bring something new to the market, otherwise, it would be another unsustainable product with too many competitors. By providing a new solution, the chances of getting positive responses from the market should be higher.
Another common problem to look out for is overengineering. This problem is caused by conducting product design without considering the expected value from targeted customers. In the end, it will waste more resources for worthless features.
When you plan to market a product, make sure you know the targeted customers, the value proposition, and the problem you’re solving for them.
Summing it up
New marketing innovations can prevent the fall of a new product. There are some benefits that will come out of this method, you could discover your customer’s needs and then make use of that information to plan your next marketing project.
Keep evaluating your marketing strategies and mix them up. And don’t forget to allocate all resources wisely and that your product is solving problems of a specific target market.