INNOVATION CREATES MARKET

ABSTRACT

This Paper Investigates about the basic marketing principles, when new
product is introduced into the market. It answers the questions like why
consumers make the purchases than they make? What factors influences
consumers purchases? nd also discusses about needs, wants and demands of
consumers and purchases decisions.
Keywords: New product development, !arketing !anagement, Types of
markets, !arketing !i"#$ p%s&, selling and !arketing, 'rand competition,
Innovation.

INTRODUCTION
In this article the basic marketing principles and strategies, when a new product
is introduced into the market are discussed. It is always never easy to introduce a
new product into the market. (eeping all the devised theories and principles in
mind the companies strive to introduce a new product in to the market. 'ut we
have a superb product to launch in to competitive market that enhances our
confidence levels and we feel proud of what we are introducing in to the market,
though it may be a small product but it will serve a hundreds of peoples%
requirement. It will be useful to all the people who conduct public meetings. In
India there are many public meetings, programs and functions held as we see in
our daily routine. )ur product serves the requirement of these organi*ers. In this
article is about the conventional !arketing +trategies and Principles along with
their possible applications.
MARKET
!arket can be defined as a place where goods are offered for sale. store or
shop that sells a particular type of merchandise. The business of buying and
selling a specified commodity. The opportunity to buy or sell, e"tent of demand
for merchandise.
MARKETING

!arketing is defined as identifying and meeting human and social needs
profitably. It is the flow of goods and services from producers to customers.
1
The term was first academically defined in -./0 when the newly born merican
!arketing ssociation #!& asserted1
2!arketing consists of those activities involved in the flow of goods and services
from the point of production to the point of consumption3.
dding to (otler4s and 5orris4 definitions, the 6hartered Institute of !arketing4s
#6I!& definition claims marketing to be the 7...management process of
anticipating, identifying and satisfying customer requirements profitably.
TYPES OF MARKETS
6onsumer markets, 'usiness markets, 8lobal markets, 5on9profit and
governmental markets.
MARKETING MANAGEMENT
!arketing management is the process of planning and e"ecuting the conception,
pricing, promotion and distribution of ideas, goods ,services, to create e"changes
that satisfy individual and organi*ational goals.
!arketing performs the e"change functions that make the total utility of the
product a reality to consumers.
Marketing Mix (4 P!"
Product, Price, Promotion and Place
Se#en P!
In addition to the traditional four P%s three more P%s are added by 'ooms and
'ritner.
People, Process and Physical evidence
Eig$t$ %
Packaging
2
T&E MARKETING MANAGEMENT PRINCIP'ES
!arketing management can be described as carrying out the tasks that achieve
desired e"changes, between the corporation, and its customers.
T$ere are a n()*er +, -i,,erent %$i.+!+%$ie! t$at g(i-e a )arketing e,,+rt/
Production Concept
:emand for a product is greater than supply.
o To increase profit, focus on production efficiencies knowing all
output can be sold. lso useful concept when increasing production
raises economies of scale etc. to reduce price. ;enry <ord,
7:oesn4t matter what color car you want, as long as it is black.7...
typical quote during the production era.
Selling Concept
:emand for a product is equal to supply.
o =mphasis is needed to sell the product to increase profits. <ocus
on advertising.
o >seful for unsought goods, i.e., encyclopedias, funeral plots.
Political candidates, selling important, not post consumer
satisfaction.
Marketing Concept
+upply for a product is greater than demand, creating intense
competition among suppliers.
o 6ompany first determines what the consumer wants, then produces
what the consumer wants, and then sells the consumer what it
wants.
3
I)%+rtan0e +, t$e )arketing 0+n0e%t
ccording to the 6ustomer +ervice Institute, it costs as much as five times
as much to acquire a new customer than it does to service an e"isting
one.
6ustomers tell twice as many people about a bad e"perience over a good
one.
ccording to the merican !arketing ssociation #!&, for an average
company, ?@A of its business comes from its presently satisfied
customers.
SA'ES AND MARKETING
+elling revolves around the interests of seller whereas marketing around the
buyer. +elling views as a goods producing process whereas marketing views as
a customer satisfying process. <irm must make the product and figures how to
sell it whereas marketing shape its products on the customers demand.
The key to achieve the organi*ational goals consists of the company being more
effective than its competitors in creating, delivering and communicating customer
value to its chosen target markets.
Meeting needs profitably.
!any companies use attractive tag lines to convey the consumers how important
they are. <or e.g.

2Bou are the boss3. #>nited irlines&
2Putting people first3. #'ritish irways&
2;ave it your way3. #'urger (ing&
E1C&ANGE AND UTI'ITY
The criteria needed for an e"change to occur1
!ust have something of value to e"change
5eed to be able to communicate
!ust be able to e"change #under C- drinking&
!ust want to e"change
t least C people needed for an e"change to occur
4
The e"change process creates >tility. >tility is the satisfaction, value, or
usefulness a user receives from a good or a service. When you purchase an
automobile, you give up less than the value of a car #to you&Dthe ability to get
you from to ', safely, in a timely manner etc.
T$ere are ,+(r t2%e! +, (ti.itie!3
<orm99production of the good, driven by the marketing function.
="ample1 'askin Eobbins turns cream, sugar and milk into ice cream.
Place99make product available where customers will buy the product.
="ample1 <ood truck at a construction site.
Time99make product available when customers want to buy the product.
="ample1 Pathmark, open C$ hours a day, /?@ days a year, has time utility
compared to Fandhope <arms etc.
Possession99once you own the product, do what you want with it, i.e. eat it
n e"ample of a service that offers all types of utility1
C$ ;our pi**a delivery service.
CONSUMER BUYING BE&AVIOUR
'uying 'ehavior is the decision processes and acts of people involved in
buying and using products.
5eed to understand1
why consumers make the purchases that they make?
what factors influence consumer purchases?
the changing factors in our society.
5
Nee-!4 5ant! an- -e)an-
5eeds become wants when they are directed to specific obGects that satisfy the
need. Wants are shaped by the one%s society. :emands are wants for specific
products backed by an ability to pay. =.g.1 many people want !ercedes.
6onsumer 'uying 'ehavior refers to the buying behavior of the ultimate
consumer. firm needs to analy*e buying behavior for1
'uyers% reactions to a firms marketing strategy has a great impact on the
firm%s success.
The marketing concept stresses that a firm should create a Marketing Mix
#!!& that satisfies #gives utility to& customers, therefore need to analy*e
the what, where, when and how consumers buy.
!arketers can better predict how consumers will respond to marketing
strategies.
Stage! +, t$e C+n!()er B(2ing Pr+0e!!36
+i" +tages to the 6onsumer 'uying :ecision Process #<or comple" decisions&.
ctual purchasing is only one stage of the process. 5ot all decision processes
lead to a purchase. ll consumer decisions do not always include all ? stages,
determined by the degree of comple"ity...discussed ne"t.
The ? stages are1
-. Problem Recognition#awareness of need&99difference between the desired
state and the actual condition. :eficit in assortment of products.
;unger99<ood. ;unger stimulates your need to eat.
6an be stimulated by the marketer through product information99did not
know you were deficient? I.=., see a commercial for a new pair of shoes,
stimulates your recognition that you need a new pair of shoes.
C. Information search99
o Internal search, memory.
o ="ternal search if you need more information. <riends and relatives
#word of mouth&. !arketer dominated sources, comparison
shopping, public sources etc.
6
successful information search leaves a buyer with possible alternatives,
the evoked set.
;ungry, want to go out and eat, evoked set is19
o chinese food
o indian food
o burger king
/. Evaluation of Alternatives99need to establish criteria for evaluation,
features the buyer wants or does not want. EankHweight alternatives or
resume search. !ay decide that you want to eat something spicy, indian
gets highest rank etc.
If not satisfied with your choice then return to the search phase. 6an you
think of another restaurant? Fook in the yellow pages etc. Information from
different sources may be treated differently. !arketers try to influence by
7framing7 alternatives.
$. Purchase decision996hoose buying alternative, includes product, package,
store, method of purchase etc.
@. Purchase99!ay differ from decision, time lapse between $ I @, product
availability.
?. Post-Purchase Evaluation99outcome1 +atisfaction or :issatisfaction.
Cognitive Dissonance, have you made the right decision. This can be
reduced by warranties, after sales communication etc.
fter eating an indian meal, may think that really you wanted a chinese
meal instead.
7
COMPETITION
Brand cometition
Industr! cometition
"orm cometition
#eneric cometition
Brand cometition$
company sees its competitors as other companies that offer similar products
and services to the same customers at similar prices.
=.g.1 wagon r from !aruti and santro from ;yundai.
Industr! cometition$
company sees its competitors as all companies that make the same product or
class of products.
=.g.1 !aruti against ;yundai
"orm cometition$
company sees its competitors as all companies that manufacture products that
supply the same service.
#eneric cometition$
company sees its competitors as all companies that compete for the same
consumer group.
=.g.1 Jolkswagen would see itself competing with companies that sell maGor
consumer durables, foreign vocations, new homes.
8
A%%.i0ati+n +, t$e Marketing T++. ,+r t$e Ne5 Pr+-(0t 7E6P+-i()8 t+ t$e
C+n!()er36
The above discussed principles and theories can be applied for the innovative
product K=lectronic Podium%, a !ulti9functional Public ddress +ystem.
E'ECTRONIC PODIUM
The electronic podium is a portable P #Public ddressing& system, fitted with
electronic components to amplify the sound, a speech, of a speaker.
It consists of inbuilt /Lwatts sound amplifiers, three efficient speakers, a 8oose
neck microphone, wire microphone, and a pen drive slot. The speakers produce
audio output and a pen drive slot is used in order to play the audio files from card
readers and pen drives. The conversion through the pen drives and card readers
is done using digital to analog converters. The digital analog converter is
connected to the amplifier circuit.
The =lectronic Podium is suitable for meeting rooms, seminar halls, hotels,
schools and colleges, etc. The electronic Podium with udio +ystem can provide
an integrated sound system. It is a choice for Feading ;otels, 6onference
6enters and 6orporations. It can make its mark in every type of venue. 6lean,
functional, and stylish, it has great sound and easy to use.
The main feature of this =lectronic Podium is that, it can also work in case of
main power failure. The rechargeable battery is charged when the main power is
connected and when the main power is unavailable the battery backup gives
power for about three hours.
%&' ()E *+E,(I&% I,- )&' ()I, PR&D+C( CA% BE I%(R&D+CED I%
(& ()E MAR.E(/
7INNOVATION CREATES MARKET8
:espite this fact, the focus is on marketing the product according to concept. s
discussed earlier, the customer segment is mainly Feading ;otels, 6onference
6enters and 6orporations, +chools and 6olleges etc.
9
(nowing that the product is limited to a meager segment of customers, the
product still has the eloquence of its own. 'ased on this an advertising strategy is
devised. Though it is dramatic, the scenario can be any vital public meeting, with
all the conventional technical requirements provided. s planned earlier, the
power goes off, but still the speaker manages to address the audiences with no
interruption, though the lights and fans goes off. This should create an interest
among the public and amidst of the awe the speaker announces the uniqueness
of the =lectronic Podium. This also can be a concept of media advertisement.
The buyer is always interested in price of the product. But, to every ones
surprise the price is always less than the epected.
CONC'USION
;ere is the marketing strategy, create the enthusiasm on the product and raise
the e"pected price level and announce the price less than the consumers%
e"pectation.
10