In Market Innovation
Essay Preview: In Market Innovation
Report this essay
In Market Innovation
Introduction:
In Market is a product launch strategy in which companies launch new product/ products with limited up-front testing or filtering. These products have basic functionalities in them. Rather than attempting to predict how products will perform through old-fashioned marketing research studies and surveys, In-market innovation lets the consumers dictate the portfolio of winners and losers.
The diagram below shows the basic idea of In Market Innovation.
Innovate:
In this phase new innovative ideas are come up with by the company. This phase encourages creativity and new ideas in product development.
Adapt:
Idea generated in previous phase is implemented and product is created having the functionality required. Up-Front Testing or filtering of the product will be very limited and product will be launched in the market
Evolve:
After the product launch, customer reaction and feedback is seen. Product with limited functionality continues to evolve through customer feedback and thus is able to match customer expectations. So its the customer feedback which drives the products success in In-Market strategy.
Advantages of In-Market research
Although this approach may seem to be more expensive than market research (because of the larger number of items developed and launched), a deftly implemented in-market innovation strategy is potentially more efficient and less costly than traditional marketing surveys and questionnaires.
This is due to the fact that Market research costs are minimized and production and design expenses are reduced. It eliminates the wasteful steps in product development that tend to kill innovation or slow the speed to the market and access to increased cash flow as in traditional market Research based product development , whole of the product is produced and then introduced in the market. This slows the speed of product to market and leaves very less scope of customization and product gets very limited chance to prove its viability.
In IN-Market approach mini launches are there where basic functionality of product is launched through simulations and Mini launches and further product is developed and customized after getting customer feedback and reaction to the product. This gives the product a chance to prove its viability.
In-market innovation requires feedback from the customers and true collaboration with consumers through simulations and mini-launches, which enables companies to enjoy an early, quick,