MKTG2505 Study Guide - Midterm Guide: Jargon, Apple Newton, Group Cohesiveness
Document Summary
Innovation is defined as any new change to a firm"s value creating activities which create superior value to the firm . Reflect on a recent product which marketers have claimed as being highly innovative. Apply the criteria for innovation, namely: newness and value creation (consumer problem solving capacity) There are 3 types of innovation: incremental, substantial, radical. At the lowest end you will minor value adding changes to product/services (ex. Volvo changing its car front grill) and at the highest end products with discontinuous technology (knowledge development) (ex. The transition from cassette tape recorder to cd player). In between there can be substantial innovations such as diet-coke. Here, it is not just about changing sugar content of the cola drink, but reflects the marketers" knowledge of consumers becoming more health conscious. This means the knowledge embedded in an innovation can be both technological and non-technological.
