Marketing innovation is the incorporation of new marketing methods and techniques that differ from the previous ones and involve significant changes in product promotion, design, packaging, and placement. It helps improve a product or service and reach a wider audience.
In this article, we’ll review the importance, types, and examples of marketing innovations.
The Importance of Innovation in Marketing
Innovation in marketing is not only the incorporation of new technology but also the implementation of new effective ideas. Innovation is essential since it helps improve your product or service. With innovation, you can reach new markets, and increase sales and revenue.
Innovation can be presented in different forms and influence various areas of a business. You can bring new technologies or ideas into practice so that your company can stand out from the competition. After implementing some changes, you might notice higher customer satisfaction, more sales, and higher profit. Consider implementing design, manufacturing, and product innovation depending on your needs and problems.
If you manage to adapt to consumer preferences, needs, and behavior, you can focus on your customers. Innovative marketing strategies and campaigns enable you to find the right approach to your target audience and win their attention. Conduct research to find out the features your product needs for a better user experience. Excellent customer experience will bring benefits to your customers and business.
Now that you know the importance, it’s time to explore the three types of marketing innovation. After discovering the types, you’ll be able to find out which one is the most suitable for your business.
Types of Marketing Innovation
We can differentiate three types of marketing innovation. In this section, we’ll review each of them in detail so you can identify them quickly.
- Radical innovation. It brings drastic changes to the brand, its market, or business growth. This type of innovation occurs when a company completely changes its product, positioning, or working processes. Let’s take Apple as an example. When the brand released its iPhone, people had already used smartphones. However, Apple’s product brought features that changed the market and people’s perceptions. Now everyone knows that iPhone users can make great images and videos. They don’t even need to buy professional cameras.
- Incremental innovation. It doesn’t bring significant changes to a product. Incremental innovation involves adding new features to a product, company, or production method. Often, it’s already implemented but still needs some alterations. So brands make them to increase customer satisfaction. Let’s take Google. The company often improves its service and provides users with new features and apps. People can now use the benefits of Gmail, Google Drive, Google Meet, etc.
- Disruptive innovation. It emerges as a response to behavioral and technical changes. Disruptive innovation reacts to the target market and aims to provide customers with the best customer experience. Let’s take a top-rated video streaming service — Netflix as an example. The company that started as a DVD-by-mail rental service now has 220.67 million paid subscribers worldwide. The company’s profitability grew drastically.
Now that you know the types, it’s time to unveil some examples so that you know how it works.
Examples of Marketing Innovations
Since marketing innovations can improve your company and relationships with customers, we’ve decided to list the most successful examples of marketing innovations employed by big brands. So, in this section, we’ll review them in detail.
Instagram is an excellent platform for brands to showcase their products from different perspectives. Stories, posts, and ads enable you to draw attention to your company and win customers. Moreover, Instagram constantly releases innovations, making the promotion process easier for your brand and more engaging for clients. You can tell the story of your company, show details, backstage, share customer feedback, etc. With the help of influencers, you have the chance to increase your following and drive profits.
Instagram provides users with personalized experiences. People can instantly find posts based on their preferences in “Explore.” The platform finds ads users can be interested in and suggests them to potential customers.
Below you can see an example of a suggestion made by Instagram. The platform chooses posts based on users’ interactions.
L’Oréal adapts fast to people’s needs in the digital era. The brand does everything possible so that customers can easily find its products and shop them without limits. The company designed a special app where users can find everything they want. L’Oréal’s Makeup Genius app is augmented reality technology that lets customers purchase items from different devices like smartphones and tablets. The app helps customers find the right products without leaving their homes. They can try on products, explore looks, and experiment with new beauty products online.
The brand uses virtual reality to let customers try on its glasses and make the right choice. Its virtual try-on glasses tool lets customers choose the perfect home frames. Users need to visit the company’s website and make two easy steps. First, they should record a five-second selfie video. Secondly, open the list of glasses and choose those they want to try on. Once potential customers do it, they will see themselves wearing a pair of glasses they want to try. The tool helps customers identify their face shapes and perfect glasses.
Congrats, now you know what marketing innovation is and why it’s essential. Hope that our examples inspire you to implement innovations and reach company success.
Last Updated: 28.10.2022