Marketing innovation can be a powerful way to gain a competitive edge and reach new customers in diverse markets. But it also comes with risks, such as wasting resources, alienating existing customers, or violating cultural norms. How can you navigate these risks and make smart decisions about your marketing innovation strategy? Here are some tips to help you.
Before you invest in a new marketing innovation, you need to understand the market potential and demand for your product or service in different regions, segments, and channels. You can use tools such as market research, customer feedback, competitor analysis, and industry trends to evaluate the size, growth, and profitability of your target markets. You also need to consider the legal, regulatory, and ethical implications of your marketing innovation, and how it aligns with your brand values and reputation.
For any innovation, it is essential to look at what will this new idea help in solving whether it is existing needs or something new altogether. When it is a diverse market any innovation doesn't come with a guarantee to work, it can be a hit or it can be a miss. Remember New Coke, At that time it was not required or may be perceived by the customers but if it comes back today may be it will do well because the tides have turned. Innovation takes a lot of effort in terms of understanding consumer behavior, macroeconomic conditions, socio, economic and political thoughts, etc. But unless we try we don't know what will work and what it feels like to swim in blue ocean strategy.
Before assessing your market potential, assess your own marketing needs. While new toys, aka new marketing tools, are exciting and fun if the tools you currently use in your business work, why change them? Change should happen when you are 1. dissatisfied with your current status quo 2. ready to scale 3. are curious about new tools 4. all of the above together. Innovation is great but comes at a cost, so be sure you are ready to pay! ;)
Once you have a clear idea of your market potential, you need to test your marketing innovation with a small group of customers or prospects, preferably from different backgrounds, cultures, and preferences. You can use methods such as surveys, interviews, focus groups, or experiments to collect data and feedback on your marketing innovation. You should measure key metrics such as awareness, engagement, conversion, retention, and satisfaction, and compare them with your goals and benchmarks. You should also look for any unexpected outcomes, positive or negative, that may affect your marketing innovation performance.
To an extent, 'Marketing' may be mirroring the approach of 'Lean Start-up' - in that you should carry out a series of minimal experiments to test your idea - in your chosen market and target clients. Any marketing hypothesis will test your expected outcomes versus results. Perhaps, also bearing in mind, your initial marketing approach and results, will not echo the same outcomes expected vs your marketing approach as both develop. Agile marketing is here.
Based on the results of your testing, you need to adapt your marketing innovation to suit the needs and expectations of your diverse markets. You may need to make changes to your product features, pricing, distribution, communication, or promotion strategies, depending on the feedback and data you received. You should also consider how to customize your marketing innovation for different segments, channels, and platforms, while maintaining a consistent brand identity and message. You should also monitor the impact of your marketing innovation on your overall marketing mix and strategy, and adjust accordingly.
A great way to do this - is to segment your markets and customize your marketing innovation for each segment. For example, you may need to offer different product features or pricing to different segments, or you may need to use different communication or promotion channels.
After you have adapted your marketing innovation, you need to scale it up and launch it to a wider audience. You should plan your launch strategy carefully, and choose the best timing, location, and format for your marketing innovation. You should also allocate sufficient resources, such as budget, staff, and technology, to support your marketing innovation implementation and evaluation. You should also communicate clearly and effectively with your internal and external stakeholders, such as employees, partners, suppliers, and customers, and inform them about the benefits and value of your marketing innovation.
Finally, you need to evaluate your marketing innovation and measure its success and impact on your diverse markets. You should use quantitative and qualitative methods to collect and analyze data on your marketing innovation performance, such as sales, revenue, market share, customer loyalty, satisfaction, and advocacy. You should also compare your results with your goals and benchmarks, and identify the strengths and weaknesses of your marketing innovation. You should also solicit feedback and suggestions from your customers and other stakeholders, and use them to improve your marketing innovation continuously.