One of the core objectives of innovation management is to build products that your customers love. Marketing, on the other hand, creates customers for your products. Companies that achieve synergy between innovation management and marketing are able to develop products faster and strategically place them in the market. In this article, learn how you can bridge marketing and innovation management to boost your innovation strategy.
What does Marketing bring to Innovation Management?
Enables Customer-centric Innovation
It is not new technologies or great products that sell. Customers buy things that serve their needs. Companies have long understood this and use market surveys to understand customer needs. With large amounts of data available online, marketing teams have access to even richer insights into consumer trends. This provides companies the opportunity to identify unknown customer trends and enables customer-based innovation. In turn, it empowers innovation managers to identify new growth opportunities and improve the value of their company’s products.
Improves Success of Innovation Initiatives
For your open innovation initiatives to succeed, it’s a must that you communicate the value they add. For example, a well-designed startup program isn’t worth much if your target startups don’t find it. Promotional and direct outreach and marketing ensure that your innovation initiatives catch the eyeballs of high-quality startups.
Communicates New Innovations
The most disruptive innovations create entirely new markets. Think of the rapid transition from phones as luxury items to a global market for smartphones. Great innovations like these need the support of great marketing. It puts your products out to new customer demographics as well as has a tailwind effect on your existing product lines. While communicating about new innovations, focus on the value they add and their benefits instead of technical features.
How does Innovation Management Impact Marketing?
Enabling innovation management requires companies to leverage data-driven insights to inform their innovation strategy. These insights impact the efficiency of their business units as well. Here’s how it supports marketing teams:
Deep Customer Insights
Data-driven trend intelligence identifies new growth opportunities for your business. One of the ways it does so is by picking up emerging customer trends. Deep customer insights allow marketing teams to improve customer targeting. Moreover, it enables you to identify and reach out to potential customers in new and existing markets.
Effective Sales and Marketing
Marketing teams strive to optimize the return on investment in their initiatives. With data-driven market intelligence, companies can engage potential customers across multiple touchpoints. This improves the likelihood of converting a prospect into a customer. For B2B brands, startup scouting discovers better leads which, in turn, increase conversion rates.
Improves Customer Retention
Retaining customers is the key to long-term competitive advantage. To do so, you must understand both what value you bring to your customers as well as what they add to your business (known as the customer lifetime value). To achieve the latter, customer intelligence improves customer segmentation, allowing you to reach out to all potential customers.
Combine the Power of Data-driven Innovation Management and Marketing
By leveraging data-driven intelligence, innovation management and marketing contribute to each other. This creates a positive feedback cycle that empowers you to consistently create great products and market them well. To get started on this journey, get in touch today!