Magic of Innovation and Emotion


By

Subrat Mishra
Manager Sales
 


Introduction:

Customers are the building block in any business. In the market two major key game changers out of many are customers and products. To achieve some extraordinary milestone any company needs a chain of customers and a set of products which meet customer's expectation. Needless to say the product should be available, affordable and accessible to customers. This is the key thrust for any Company to think in a macro eye with microscopic observation while design a product. The innovative products should meet customers demand and future desires.Every one of your competitors claims to be the best, least expensive, most desirable.  In this scenario the trump card in the race is innovation. Innovation in product or service can capture the eye ball of the customers and helps the company to attract and gain new customers.Innovation is highly desirable to stay in customer's mind for touching their heart to extract money from their wallet. Product innovation helps any company to stand bolder and bigger among the other products. The best example is new Maruti Alto 800. Apart from innovation long term relationship with the customers is the key to success in any business. Going forward we believe that companies will have to think beyond today's revenue and profitability. They have to manage their customer relationships as assets & goodwill for their business.When these relationships are well nurtured and ongoing, it produces sustainable returns to any company. In the long run, customers should not be seen as an opportunistic customer rather as a strategic partner. If the companies carry innovation and emotion in their track of business returns will be more sustainable in the long run.

Innovation:

Innovation is the process to deliver superior solutions which meetfuture needs & expectationsof customers. This is accomplished through effective products, processes, services, technologies, or ideas.If a company's products or services are not continually improved, competitive pressures invariably lead to falling prices, declining margins and the commoditization of its offer. Innovation is about new solutions, which offer more value to customers. An innovation may, or may not involve new technology however it addressescustomer's needs to be met more effectively. Peter Ducker summarized this neatly when he defined innovation as exploiting change as an opportunity.Consumers look for solutions, not merely products, which can add value in terms of saving time, enriching quality of life. Marketers should put their lenses in these parameters while designing a product.In a nutshell Innovation is about meeting customer needs more effectively than competitors.

Take the example of Rolex (Swiss watchmaking manufacturer).The symbol of high-quality luxury wristwatches &popularly regarded as prestige to its customer.Rolex innovations are mentioned below which helps to place itself in a different orbit of competition:

* The first waterproof wristwatch "Oyster", 1926
* The first wristwatch with an automatically changing date on the dial (Rolex Datejust ref.4467, 1945)
* The first wristwatch case waterproof to 100 m (330 ft) (Rolex Oyster Perpetual Submariner ref.6204, 1953)
* The first wristwatch to show two time zones at once (Rolex GMT Master ref.6542, 1954)
* The first wristwatch with an automatically changing day and date on the dial (Rolex Day-Date, 1956)
* The first watchmaker to earn chronometer certification for a wristwatch

Nokia was the first company to realize that cellphones are the personal accessories and felt consumer wanted more than a phone. So it introduced cellphones with style, changeable cover, wider screen, Soft key pad and no of ringtones. Nokia is the first company to mass market a cellphone with antenna inside and offer Radio, stopwatch, Camera etc in a cellphone. Soon it becomes the no 1 cellphone manufacturer in the Globe. But as the customer taste and preference are changing continuously Samsung and other mobile handset manufacturers has recognized the smart way of thinking and deliver the smart phone to the consumers. The development of technology has revolutionised not only how we communicate with others but how we live and work. Nowadays, Smartphones has taken the power of desktops and laptops. Everyone prefers to check their mails, play games or do other stuffs on their mobile phones. The Battle of Supremacy is still going on to offer more value to customers.At the recent World Mobile Congress in Barcelona the world's biggest annual mobile trade show Fujitsu introduced its new waterproof phone, while Samsung launched the Galaxy Beam, which has a built-in projector that can show 50-inch-wide videos on a blank surface.The same trend has happened in case of Television from Black & white TV, color TV to LCD, LED, Plasma and Smart TV.

Innovation in Reposition:

The automobile industry has grown to be a very dynamic one in the recent years. Even though the essential use of this industry has been to satisfy the customer's need to travel from one place to another in comfort, the constantly changing market, has   slowly changed   customer's needs into wants paving way for high competition in the automobile arena. Tata Nano, which was projected as a low priced car was not gel with customers self-esteem. The market for low-priced car is not a roaring concept in the car segment. Eventually, in a bid to regain consumer confidence, Nano had to undergo change in its communication as an aspirational product, bringing happiness to the owner in its slogan 'Khushiyonkichaabi'.

Emotion:

Emotion is primarily by psychophysiologicalexpressions, biological reactions, and mental states. It is often associated with mood, temperament, personality, and motivation of a human being. Emotion is often the driving force behind motivation, positive or negative.Emotional benefits are the positive emotions the consumer experiences afterusing a particular product or service or brand. Emotional branding is a marketing approach where the marketers try to get into the mind of the customer to build up a long lasting relationship and enhance loyalty. The advantages of loyal customers are:

* Forgives and understands minor problems.
* Considerably less price sensitive.
* Will help sell the business with word-of-mouth advertising.
* Will not jump at the next "pretty face".

Cadbury tapped the untapped market of teens and the adult market by "The 'Real Taste of Life' campaign, positioned Dairy Milk as a chocolate that awakened the little child in every grown-up. Soon, both teenagers and adults were attracted on to Cadbury Dairy Milk bar. Previously 'KucchMeetha Ho Jaaye' campaign was launched to position Cadbury Dairy Milk as the new substitute for traditional sweets. Proceeding further, Cadbury took next step in its journey; to build a stronger emotional and cultural connect with consumers with 'ShubhAarambh' campaigns.

Conclusion:

Now customers are more talented and smart while investing their hard earned money for buying anything. They compare products and offerings based on which they can decide what to purchase and which to reject. Customers want suppliers to provide solutions not products. But customer needs are not static; they change with tastes, fashion, competitive offers and new technological possibilities. What is regarded as a good product by customers today will not be same tomorrow. Across all industries like computers, electronics, pharmaceuticals, Automobile products and services are rapidly rendered obsolete by innovative solutions. Businesses survive when they maintain a continuous fit to the changing market environment. For most firms, profit and growth depended upon the company's ability to create new and offer new innovative solution to their targetedcustomers. Product innovation will attract new set of customers to a particular brand and emotional attachment with the brand will retain existing customers. Excellent firms don't believe in excellence only in constant improvement and constant change. Every company's greatest assets are its customers, because without customers there is no company. Most of the sales strategy target customers for short-term revenues. They sell for targeting customer's wallet of today and focus on securing as maximum share as possible of their wallet. Now the products were launched with lower price for market penetration. For many manufacturers this was a differentiator and still looks good strategy at least in countries which are yet growing economies.Now MNC brands score better in lifestyle associations, Apple is one of the best in the world at this -- all of their marketing is focused on making you believe that owning an apple product will make your life better so it rightly said "Win their minds win their hearts". Still Indian brands are recognized more for their `economy' and `value for money'.As companies worldwide battle relentlessly for attracting new customer, capturing competitor market share, and to cope with customer needs the magic of innovation and emotion can helps them to go for extra mile.

Hence It is rightly said there is only one boss in any businessi.ecustomer and he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. Needless to say utmost customer's care should be taken if we need to be in the race.

Reference:

1) Velocity,Volume-5,No-2,1ar Quarter 2003.Developing Customer Relationship Capital
2) Company orientation towards market place, Marketing Management by Kottler and keller page no.15,12th edition
3) I'm Not A Salesman, But I Sell Anyway, From ww.businesslistening.com/sales_for_non-sales.php.
4) Pitch Exclusive: Why brands move up to emotional connect, published in 17th August 2011 ByRuchika Kumar in exchange 4 Media website.
5) Pitch Exclusive: Detergent cos tide over price war, take battle to ad front,published on Mar 05, 2004exchange 4 Media website
6) Rolex from Wikipedia.http://en.wikipedia.org/wiki/Rolex
7) The Latest Cell Phone Innovations: Breakthroughs or Busts?Posted on March 16, 2012 ,http://knowledgetoday.wharton.upenn.edu/2012/03/the-latest-cell-phone-innovations-breakthroughs- or-busts/
8) Emotional Branding Posted on June 14, 2011 by Pressed4Time,http://www.pressed4time.com/blog/?p=66
9) www.exchange4media.com
10) Marketing Management by Philip Kotler
 


Subrat Mishra
Manager Sales
 

Source: E-mail October 30, 201

 

         

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