Customer Centric Innovation Marketing

Customer Centric Customer Centric Innovation Marketing Innovation Marketing

ororHow to create segmented How to create segmented How to create segmented How to create segmented customer experiences for customer experiences for customer experiences for customer experiences for

successful innovation diffusionsuccessful innovation diffusion

INNOVATIONMARKETING

Dr. Ute Hillmer8th July, 2011

Content of the Lecture

1. Why is Innovation Marketing different?

2. Success factors of an innovation diffusion strategy

3 Key Elements of successful technology diffusion3. Key Elements of successful technology diffusion

4. Customer profiles

5. Best Practice Innovation Marketing

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Why is Why is InnovationInnovationMarketing Marketing diff t??different??

“… most new TECHNOLOGIES change the way you do things”

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Technology Marketing is different gy g...

thus we have to change to change how we do thingsthings...

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Directly involved Innovation Resources: R&D and Resources: R&D and Marketing (inbound+outbound)Marketing (inbound outbound)

Cash flow over time

Market Demand: Market Demand: Product Lifecycle

R&D

inbound Marketing

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outbound Marketing

An Idealized Innovation LifecycleAn Idealized Innovation Lifecycle

Continuous InnovationDisruptive Innovation

ear

ketsi

zeMa

TimeLaggards16%

Late Majority

EarlyAdopters

Early Majority

Innovators2,5%

INNOVATIONMARKETINGRogers Diffusion of Innovation 1995

16%34%13,5% 34%

Diffusion of an Innovation: Variations

rketsi

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Ti

Ma

Time

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rketsi

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Marke

tsiz

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Time

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TimeRogers Diffusion of Innovation Moore; Crossing the Chasm

Success Factors of an Innovation Diffusion Strategy1. Favourable characteristics of innovation.2. Business Strategy that is based on customer

insight and recognises different customer profiles within a market category.

3. Communication Strategy where gycommunication content and communication vehicle considers point 1+2.p

INNOVATIONMARKETINGE.Rogers, Diffusion of Innovation, 1995

Key Elements of successful yInnovation MarketingCharacteristics of innovation

Customer Customer insightinsight

Communication strategy

INNOVATIONMARKETINGE.Rogers, Diffusion of Innovation, 1995

“I ti ”“Innovativeness”degree to which an individual or a unit is relatively = degree to which an individual or a unit is relatively earlier in adopting new technologies than other members of a system

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Rogers Diffusion of Innovation 1995

An Idealized Innovation Lifecycle

ear

ketsi

zeMa

TimeLaggards16%

Late Majority

EarlyAdopters

Early Majority

Innovators2,5%

INNOVATIONMARKETING

16%34%13,5% 34%

Moore; Crossing the Chasm

Individual Adopter Categorization th B i f I tion the Basis of Innovativeness

Marke

tsize

Conservatives:Pragmatists:

Stick with the herd!

M

Skeptics:No way!

Hold on!Visionaries:Get ahead!Techies: No way!Get ahead!Techies:

Try it!

Time

LaggardsLate Majority

EarlyAdopters

Early Majority

Innovators

INNOVATIONMARKETINGMoore; Crossing the Chasm

RecapRecap• Innovations diffuse at different speed

• Within ONE customer category there are Within ONE customer category there are typical customer profiles. Paying attention to them and communicating with the customer profiles in mind will help diffuse an profiles in mind will help diffuse an innovation.

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Innovators: Techies Technology is their life

Technology - Crazy– Spend hours to get the product to work p g p– Do everything to help the product– Technology should be for free

Forgiving soulsDon’t mind lousy documentation and weird procedures – Don t mind lousy documentation and weird procedures to achieve functionality

– Want technology first – no need for a sales channelWant technology first no need for a sales channel

Their role: they move technology forward but do INNOVATIONMARKETING

not generate much diffusion + generate no income Moore; Crossing the Chasm

Visionaries Technology enthusiastic businessmen, driven by a dreamdriven by a dream

Businessman first- driven to be the first - new technologies are used to serve their own strategic benefitg g- want fundamental improvements- make business world aware of new technologiesmake business world aware of new technologies- not very price-sensitive, have project budget- live in the futurelive in the future


Visionaries (2)Visionaries (2)

Take a risk- love publicitylove publicity- risky projects - start projects from ground up, don‘t want

standards, want to develop them, p- buy by intuition (but may claim otherwise)- highly motivated, driven by a dream


Visionaries (3)Visionaries (3)

E ll t i tExcellent communicators- charismatic; they fight for their project- like to serve as a reference / opinion leader- network with techies and clever peoplenetwork with techies and clever people- too many references de-motivate visionaries

l l ki f id d i i ti- always looking for new ideas and inspiration

Their role: they fund the product development, give the innovation a “real” application and

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g ppserve as an opinion leader.


PragmatistsgLook for measurable, incremental improvementDriven by business resultsDriven by business results

- improved productivity

Avoid risk- risk is a negative termrisk is a negative term- want to work with market leader/ established firms- look for product quality, support, consulting, good look for product quality, support, consulting, good

interfaces, reliability- want standards, “save buys”- need references- live in the present


Pragmatists (2)Pragmatists (2)Loyal customers• are interested in company they buy from• revenue / profit should grow steadily “stability”• revenue / profit should grow steadily stability• network within company and industry• the first mass market

Their role: They hold the key to the mass y ymarket

BUT: you need to be established in order for BUT: you need to be established in order for them to buy from you but you don‘t get established until they buy from you ! ?

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estab s ed u t t ey buy o you


Pragmatists (3)Pragmatists (3)

Consequences out of this profileOne really needs to be familiar with the processes and issues that worry the pragmatists

Offer a clear relative advantage to them


ConservativesConservatives“I don’t have to like the product, even if I use it”

- They do what pragmatics do but later- They do what pragmatics do, but later

- Invest in technology to keep up with competition

- Have low technical competence


Conservatives (2)Conservatives (2)

- predictable

- want everything faster, cheaper, improvedy g , p , p

- are price sensitive

- like bundles, pre-installed solutions

- “if it isn’t broken, don’t fix it”if it isn t broken, don t fix it

- very interested in 24/7 service and support

Their role: huge mass marketINNOVATIONMARKETING

e o e uge ass a et


Individual Adopter Categorization th B i f I tion the Basis of Innovativeness

Marke

tsize

Conservatives:Pragmatists:

Stick with the herd!

M

Skeptics:No way!

Hold on!Visionaries:Get ahead!Techies: No way!Get ahead!Techies:

Try it!

Time

LaggardsLate Majority

EarlyAdopters

Early Majority

Innovators

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Mainstream BehaviourMainstream Behaviourlat

ive

dopti

ons

Nonc

umul

mber

of ad

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Increasingly conforming behaviour

GROUP identities

TimeLaggardsLate Majority

EarlyAdopters

Early Majority

Innovators

INNOVATIONMARKETINGHillmer, Technology Acceptance in Mechatronics, 2009.

Individualistic BehaviourIndividualistic Behaviourlat

ive

dopti

ons

Nonc

umul

mber

of ad

Nnu

m

Increasingly individualistic

behaviourROLE identities

TimeLaggardsLate Majority

EarlyAdopters

Early Majority

Innovators

INNOVATIONMARKETINGHillmer, Technology Acceptance in Mechatronics, 2009.

Marketing Content Generation, based on g ,Adopter Categorization

Size Technical

Marke

t S Knowledge Challenge

Stability Tech.

CompetitiveChallenge

ySecurity

Managerial Challenge

Managerial Competence

W k Lif B lManagerial Challenge

T h i l C t

Tech. Competitive Challenge

Work-Life Balance

Technical Competence

Adoption Time

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Adoption Time

Hillmer, Technology Acceptance in Mechatronics, 2009.

Trustbuilding with Pragmatic Innovation Customers

Concentrate a overwhelming power on a „Concentrate a overwhelming power on a small, focused target market segment“

FOCUS

Customer

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Best Practice Innov MarketingBest Practice Innov. Marketing

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Pictures Curtesy ofPictures Curtesy ofVi i b t l h /A ti l /U l dFil /2Visionary www.beautyangleshop.com/Article/UploadFiles/2Pragmatist

http://us.cdn4.123rf.com/168nwm/nyul/nyul0901/nyul090100351/4130478-t it f h f l b i h ldi ili j d portrait-of-happy-successful-businessman-holding-newspaper-smiling.jpg oder

http://us.cdn2.123rf.com/168nwm/patrick1958/patrick19580805/patrick1958080500253/3081392-handsome-young-successful-businessman-sitting-on-bar-stool white background studio shot jpgstool-white-background--studio-shot.jpg

Conservative: http://us.cdn4.123rf.com/168nwm/logos/logos1003/logos100301371/7808434-

i d b i jworried-businessman.jpgLaggard http://www.123rf.com/photo_8228428_portrait-of-busy-chief-calling-by-

phone-and-refusing-from-cup-of-coffee-held-by-his-secretary.htmlHerde www.baeren-blatt.de/juniorline/dpa-JuniorLine-

images/Pferdeherde_20742838.onlineBild.jpg

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The End!The End!Thank you y

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