Innovation In The Market Flashcards
Market needs
Are the basic requirements of a human being for example food, water and shelter. We need these things to be able to survive. Marketers play no role in creating needs.
Market wants
Happen when market needs turn into market wants this change occurs when influences such as culture, society, personal identity and personal preference come in to play. Marketers will market products in such a way that customers believe they need those products for every day survival for example the internet, mobile phones, luxury foods and so on
Market demands
Humans have endless wants or demands for example a Mercedes’ car, a round the world trip and so on. These wants turn into demands when customers have the ability to buy them. Market demands are wants backed with buying power.
Technology push
A technology push model is where a new technological advancement is used to
design and develop a product using new technology. The consumer or end market have not requested this product or identified it as a need.
The product is targeted at the consumer who a business believes will want it and understand it the most. This strategy is viewed as high risk strategy, as the consumer demand for the product is not identified prior to design, development and production
Market pull
A market pull model is when new product comes from a need
identified within a market. Detailed analysis of market research
identifies what needs exist, how existing products meet these needs
and how a new product may be better.
An example of a product that was developed as a result of the
market pull model is:
Allergy free plasters;
Gluten free products;
Drivers Invention
Vegetarian products; and
Accessories for the iPad
Radical products
Are produced from new technologies;
There is a high level of uncertainty of the products success
especially during the early stages of the products
life-cycle;
Are costly;
Require a high level of marketing;
Can create new markets;
Can lead to rapid growth and profits;
Products normally replace existing products making them
obsolete; and
Are products and or processes which have never been seen before
Radical products examples
The internet;
The telephone;
The light bulb;
The walkman; and
The radio.
Incremental products
Are produced using existing technologies;
Are less costly;
Require low level of marketing;
Most products are incremental innovations;
Products are sold alongside existing products;
Products success rate are normally high; and
Are products that are developed by looking at existing
products features and costs and looking for
improvements.
Incriminate examples
Gillette Razors;
Cars; and
Mobile phones.
