Lecture 1: Introduction

Question 1

What is innovation?

Answer 1

Innovations facilitate the conversion of market-oriented business philosophy into superio corporate performance.
Innovation is one way of implementing market orientation

Question 2

What is the effect of innovations?

Answer 2

On the short-term; not really effective, only leads to a bit of revenue.
On the long-term: more revenues
This is because innovations cust resources and need some time before these resources are earned back with the used money.

Question 3

What is the importance of new products?

Answer 3

Facilitates the implementation of marketing orientation
Needed for do]ifferentiating from competitors
Needed for long term performance/survival

Question 4

What is inertia?

Answer 4

Reluctance to change: a firm’s lack of willingness to cannibilize sales, routines and prior investments, which is shown to be an important determinant of firm innovativeness.
Keep doing what you are doing instead of change

Question 5

What does creating value require?

Answer 5

Resources; knowledge
- Knowlegde of the niece (conducted by market research)
_ understanding the customers (customers intimacy)

Question 6

What is customer intimacy?

Answer 6

Having strong relations with customers and involve them.
True customer intimacy requires a deep understanding of the context in which our products and services are used in the course of our customer day to day lives

Question 7

What are the different stages of a product life cycle?

Answer 7

1. NPD
2. Launch
3. Growth
4. Maturity
5. Decline
6. Elimination