subject: Brand Marketing: Innovation And Opportunity In A Changing Market [print this page] Introducing new markets or innovative products, and creating public demand for those products, is the most probable way for established companies to realize substantial growth. An example of this is Apple, which successfully introduced the tablet technology with the original iPad in 2010. However, a majority of innovations in todays marketplace are introduced by underdog companies, or by companies who have to be innovative to survive. Even if resources are available, most successful companies opt instead for steady improvements to already established products. Companies tend to stick to what they know for several reasons:
A Focus on Core Business: Firms that have been successful improve their core business rarely to develop market-changing innovations. They instead focus on improving their established product through incremental innovations, strengthening their brand, and reducing costs to build a larger customer base. These companies tend to ignore promising opportunities and avoid risky strategies that may weaken the core business.
New Innovations are Insignificant: Many of the top brands, such as Microsoft and McDonalds, dont introduce new ideas because their established products are already extremely profitable. Any new idea wont match the profitability and the exposure of the existing brand, and they already have a proven business plan to bolster the existing brand through steady improvements and new marketing campaigns.
Diverting Research and Development: For established businesses, there is sometimes pressure to satisfy investors with short-time growth. This is sometimes accomplished by using funds previously earmarked for research and development, or to finance the core business.
Quaintise, a full service Marketing, Advertising, and Public Relations Agency in Arizona, suggest the following three ways to avoid these obstacles:
1. Support major innovations by building the funding and opportunity into the business plan.
2. Allocate funding resources so the core business doesnt suppress innovation, providing opportunity for
smaller innovations that are not related to the core business.
3. Create a company culture that promotes and rewards innovative thinking and risk taking.
To stay ahead of competition, companies need to realize that market-changing innovation is critical to real growth. To avoid these identified obstacles to innovation, companies should change business plans, structure, and corporate culture to promote opportunities for innovation.
