Brand Innovation, Heritage Brands, Elasticity and Architecture

Madeline Briscoe
Flashcards by Madeline Briscoe, updated more than 1 year ago
Madeline Briscoe
Created by Madeline Briscoe about 4 years ago
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Masters Degree Marketing (Brand Management) Flashcards on Brand Innovation, Heritage Brands, Elasticity and Architecture, created by Madeline Briscoe on 01/04/2016.
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what is innovation? the process through which inventions and new ideas become a business reality. it is more than invention as innovationcan happen with new products, processes, strategies and structures
why is innovation important? -to develop competitive economy/foster competition in innovation -to achieve future economic prosperity -provides the co. with a competitive advantage -fundamental to the long-term development of a brand
what are the 2 basic ways innovation may occur? -demand-pull (fulfilling market need) -technology push (applying existing knowledge)
what are the 5 types of R&D? (burns & stalker) -pure research (advancing knowledge w/ no immediate commercial application) -basic research (advancing knowledge with the hope that it will be useful) -industrial research (transform pure/basic research to profitable use) -design (development of final product for the customer)
what is the simple 1st generation - linear model of innovation (technology push/demand pull) tech push: science discovers>technology produces>firm MARKETS demand pull: MARKET needs>technology responds>firm markets (Rothwell)
what are some criticisms of Rothwell's linear modes of innovation? -very compartmentalised -slow process -no room for collaborative innovation e.g.between scientists and marketers
what is the 3rd generation - coupling model of innovation 89f3777e-3330-4405-9a49-d4699ab17162.png (image/png)
what is the 4th generation - integrated innovation model -multifunctional teams where all areas come together -marketing has a role all the way through the innovation process -quicker than previous models -arguably more responsive to market needs
what is the 5th generation innovation process model? -greater overall organisational and systems INTEGRATION -flatter, more FLEXIBLE organisational structures -fully developed internal database structures -electronically assisted product development
what are closed innovation models and what are their downfalls? -research the market, filter the research and use it to develop product -assume companies do the innovating -rely on idea that innovation is occurs only through desiging products (Chesburgh)
where should innovation start and why? should start with innovation in service provision, sourcing decision. buying decisions THEN can have better innovation in product development
what are the 5 types of innovation (where innovation can occur?) -raw material (change plastic to make tougher) -product (change dashboard to make easier to read -process (use robots to weld cars) -marketing (using celebrities) -organisation (outsourcing payroll)
the importance of innovation in business models -shifts focus to the 'how' of doing business, as opposed to the what, where -focuses on a holistic perspective of how business is conducted, rather than on particular strategy or market -emphasises value creation for all members of business (incl customers) as apposed to value capture
e.g. of co. that benefitted from business-model thinking in terms of innovation? -firm that manages brands such as Zara made business-model thinking a priority -have innovative production process where generic activities such as dyeing, washing, ticketing are performed in-store, sewing is outsourced -can bring garments to shop floor in record timing
what are characteristics of entreprenurial organisations? -focus more attention/resources on what they do not know yet (investment, R&D) than controlling what they already know -measure success not by how far they've come, but how far they have yet to go
what are economic, policial and personal conditions that allow for innovation to thrive? E: changing economy, unemployment, downsizing, globalisation, competitino Political: ideology, policy, regulation Personal: education, support, social class, family history - innovator as craftsman, opportunist, organisation builder
what is open innovation? Open: 'not all smart people work for us', exertnal R&D can create value, don't have to originate research to profit from it, make best use of internal and external ideas
what is closed innovation? Closed: 'smart people work for us', to profit from R&D, must do it ourselves, if we create the best ideas, we will win
e.g. of co. that changed from closed to open innovation -P&G closed until financial troubles, there was an increase in pace of innovation, costs, consumer demands. co. required growth which exceeded ind growth rate, collaborated with external source -when process began 10-15% innovation was external, when ended 50% -6% growth rate in avge 2-3% industry
what are the challenges of using open innovation? -multiple owners of idea -research co. need to change and adapt processes for different companies -using external source creates gap in internal capabilities
what is user-led innovation? -Innovation by consumers and end users, rather than suppliers -can be innovation in use, service, configuration of technology or novel technology
e.g. of user-lead innovation discovery that using the x-box can help stroke patients recover
what is the role of lead users in user-lead innovation? -innovation by users tends to be done by "lead users" -experience needs that will become general in marketplace months/years before majority of target market - so they are motivated to innovate themselves and often develop own solutions
what is an example of user lead innovation? inventions on 'dragon's den' tv show
what are the common traits of good innovation? -strategic focus -insight -collaboratin -process: streamline idea>evaluation>creation>market place -organisation
what is a heritage brand? -core values and history -use symbols consistently (may alter slightly, but maintain link, e.g. peugot changed a little and pepsi changes alot) -brands that go forward but with a meaningful past (balmer)
what is a brand extension? endowing a new product with a well known brand name (e.g. apple)
what is brand elasticity? how able a brand is to extend into distant product categories e.g. Virgin quite elastic, virgin mobile, virgin airlines. not enough to extend into things like softdrink
what allows a brand to stretch? (volkner & sattler) -difficulty in producing the extension product -consumer's knowledge of the extensions product class -comapny size -order and direction of previous brand extensions -consumers mood
what 4 things help brand extensions succeed? -Fit between parent brand and extension product (by extending on: appealing attribute e.g. good at cleaning, make more cleaning products, extending to be used within existing products (e.g. make ipod then make speaker) -Parent brand conviction -Parent brand experience -Retailer acceptanceMarketing support
how does consumer's style of thinking effect their acceptance of brand extensions? -analytical vs holistic: holistic more positive about extension fit -innovators (willing try new things) -early adopter (respected opinion leaders) -early majority (not opinion leaders) -late majority (risk-averse) laggards (highly risk-averse, traditional)
how can companies increase the fit of the brand extension with the parent brand? -link extension with the existing strong brand image -create associations (e.g. through sponsorship) -increase exposure to the extension
what is brand architecture? -how the brands fit with one another and with parent brand -branded house (e.g. virgin, see virgin name on extensions) -house of brands (e.g. Nestle, see a tiny nestle name on each product, each brand extension has own identity)
what should co's consider in regards to brand architecture? Number of brand levels Role of the corporate brand Relative weight of the brands Degree of globalisation
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