Marketing focuses on the needs of the customer, and therefore should begin with an analysis of customers’ requirements and attempt to create value of providing products and services that satisfy those requirements.
The marketing mix is the set of variables that are to a large extent controllable by the company normally referred to as the four Ps, product , price, place and promotion. All four factors allow some scope for innovation. Product Innovation results in new or improved products and services and may change the basis of competition. Product innovation allows some scope for premium pricing and process innovation which may result in price leadership innovation in logistics and may affect how a product or service is made available to customers including distribution channels and nature of sales point. Innovations in media provide new opportunities for promotion.
Clearly, then many standard marketing tools and techniques are of limited utility for the development and commercialization of novel or complex new products or services and a number of weaknesses can be identified.
Identifying and evaluating novel product characteristics. Marketing tools such as conjoint analysis have been developed for variations of existing products or product extensions and therefore are of little use for identifying and developing novel products or applications.
Identifying and evaluating new businesses. Marketing techniques such as segmentation most applicable to relatively mature well understood products and markets and are of limited use in an emerging ill- defined market.
Promoting the purchase and use of novel products and services: The traditional distinction between consumer, a business and business marketing is based on the characteristics of the customers or users but the characteristics of the innovation and the relationship between developers and users is more important in the case of novel and complex products and service.
Therefore before applying the standard marketing techniques, we must have clear idea of the maturity of the technologies and markets.
Source: Managing Innovation