Importance of innovation

Innovation is a necessary proportion in strategic marketing management, which could create the new markets and induce substantial shifts in existing ones. Innovation seems a two-waged weapon for the companies. On the one hand, there are some risks and complexities in the innovation and some large companies prefer to barriers it rather than encourage it. On the other hand, without innovation, it is difficulty for the organisations to earn competitive advantage and have a good performance in the market.
Technically novel is not indispensable to the marketing innovation. The most important thing for the companies is let their customers perceive the novel. That means innovation could be regarded as a new product & service, process or system to the marketing, in the other word, Innovation is create the new markets and new advantages.
Marketing innovation relies on a process which brings on the change of customers’ attitudes and values gradually. This is radically a social phenomenon which is including some basic propositions as followed: the propensity to attempt innovative things, the speed of adoption, innovations are learned from kinds of sources.
The development of the marketing follows the “S” curves which begins bit by bit, then grows steadily until moving into quick growth, which maintains until saturation, when increases approximately and plateaus in the end. What has mentioned above imply that, if the organisations pursue to become the leaders or at least survived in the market, they have to develop. Technological innovation plays an important role in the development of the companies which is searching a market application. And the performance improvement of the technology approaches also follows the “S” curve. In the emerging technology, it is high cost of time and money. And in the developing technology, the best R&D returns are acquired.
Innovation is an excellent method of gain a sustainable competitive advantage in growing and mature markets. In the early, entry is rather significant to being powerful at the shakeout which could create a defensible position in the cut-throat competition. Early entrants must confront with the high risk, however, they could create the entry barrier and own a potential market. Nevertheless, innovation is very useful in the mature market as well as the new and growing markets. Consequently, innovation is more significant than technological breakthroughs in the market.

Innovation Is not merely a market research techniques, or just a concept testing. It is a long-term strategic view and a high risk take. So some managers believe there are more barriers to innovation in their cooperation, which includes the pressure for quick volume sales, decreasing the risk by market research, ignoring the limits of technology, systems of rewards rather than high danger entrepreneurial approach and the limitation of the organization structures and financial systems.