Summary Marketing and Innovation - 2021/2022
Lecture 1 - Introduction
True Customer intimacy = really understanding the customer, which requires a deep understanding of
the context in which our products and services are used in the course of customer’s day-to-day lives.
Inertia = keep on doing the same thing. Lack of willingness to cannibalise sales, routines and prior
investments (reluctance to change).
Lecture 2 - Product Strategy
So why do firms fail?
● Not recognizing innovation
● Managerial myopia
● Core capabilities become core rigidities
● Incumbents sometimes at a disadvantage
○ Being too close to your customer can be harmful
○ Organisational inertia may hinder innovation
What can firms do to overcome this inertia? (Hillebrand et al.) That companies have difficulties in
changing and developing new products (because of core capabilities becoming core rigidities, and
that may hinder your innovation?
● Be willing to cannibalise
○ Focus on understanding current AND future customers/current AND future
customer needs
○ That is: innovation based on in-depth understanding of customer value
○ Different structure, different people, maybe even a new brand and then start over
again. That is what IBM did → they survived.
● Future market focus (radical innovation) combining with customer orientation (incremental
innovation)
● Organising according the market requirements
Example Heineken
Heineken example: they say: we already have a brand and a product that does well, so why should
we come up with another product that would take away sales from our og product and have a lot
of marketing costs coming with the new product? Well, if Heineken doesn’t take away sales, then
another company will. So thinking that innovating with a new product isn’t efficient or effective,
doesn’t take into account competitors.
How does all this relate to the paper of Tripsas?
1
, Creative destruction, aan de ene kant komen er nieuwe entrants de bestaande firms overnemen
met hun technologische superior products, maar aan de andere kant hebben al bestaande firms
voordelen in dat belangrijke en gespecialiseerde complementary assets bezitten.
Ultimate commercial performance of incumbents is determined by:
1.Investments in new technology
2.Technical capabilities
3.Specialized complementary assets
Main insight = Assets and capabilities do not always remain valuable and that means that you as a
company need to be able/need to be willing to let go. To leave the past behind. → Willingness to
cannibalise = the willingness to burn up the things you have been successful at, because they will
not be helpful in the future.
Managerial myopia (bijziendheid) = obtaining short-term gains rather than long-term profits.
● Een marketingbijziendheid op het verkopen van producten en diensten, ipv dat waar klanten
daadwerkelijk naar opzoek zijn
Core capabilities = the knowledge and skill that resides in an organisation, on which the activities of
the organisation rely (such as distribution, platforms and technology).
Core rigidities (stijfheid) = the dark side of core capabilities revealed to external events when new
competitors take over (such as a better way to serve customers, new emerging technologies and
political changes).
● Develop new products the old fashioned way
Complementary assets = things that the incumbent(=betrokken partij) has and that are hard to build
up for new entrants.
Cannibalisation = phenomenon in marketing in which the introduction of a new product ten koste
gaat van het al bestaande productassortiment
Market orientation = the thing in the market where you focus on (either customer orientation or
future market).
2
, Customer orientation = market orientation that focuses on current customers (short-term).
Future market focus = market orientation that focuses on the market in the future (long-term).
Lecture 3 - Adoption
Technology Acceptance Model (Davis)= describes the process towards use of a technology and the
determinants of this (especially used in information systems).
● Perceived usefulness = Do I think that this innovation is going to help me in that particular
job that I have to do? If I think that, then yes I have a positive attitude, behavioral intention to
use etc.
● Perceived ease of use = How easy is it to use the innovation?
● Theory of Planned Behaviour = model of Ajzen that describes the determinants of planned
behaviour based on intention (formed the basis for the Technology Acceptance Model).
Adoption theory (Rogers - Godfather of innovation theory!) = model that shows the adoption of an
innovation over time over several adoption categories (wide set of innovations, more extensive).
Overeenkomst tussen TAM en Adoption theory Rogers: These are all perceptions about the
innovation that determine whether we would adopt to it or not.
Adoption = using it on an individual level, making the decision of making use of an innovation.
● But it is not operational like that. And according to the TAM, it is just the intention. It is easier
to measure intention instead of behaviour. So it is more the intention to adopt.
Adopter category = group of customers reacting in a specific way regarding the adoption of an
innovation, sharing characteristics related to:
● Socio-economic (income, age, education)
● Psychological (product involvement, innovativeness, empathy)
● Communication (use of mass media, size personal network)
Diffusion = the adoption on a market level, which is the spread of the innovation over time.
3
Lecture 1 - Introduction
True Customer intimacy = really understanding the customer, which requires a deep understanding of
the context in which our products and services are used in the course of customer’s day-to-day lives.
Inertia = keep on doing the same thing. Lack of willingness to cannibalise sales, routines and prior
investments (reluctance to change).
Lecture 2 - Product Strategy
So why do firms fail?
● Not recognizing innovation
● Managerial myopia
● Core capabilities become core rigidities
● Incumbents sometimes at a disadvantage
○ Being too close to your customer can be harmful
○ Organisational inertia may hinder innovation
What can firms do to overcome this inertia? (Hillebrand et al.) That companies have difficulties in
changing and developing new products (because of core capabilities becoming core rigidities, and
that may hinder your innovation?
● Be willing to cannibalise
○ Focus on understanding current AND future customers/current AND future
customer needs
○ That is: innovation based on in-depth understanding of customer value
○ Different structure, different people, maybe even a new brand and then start over
again. That is what IBM did → they survived.
● Future market focus (radical innovation) combining with customer orientation (incremental
innovation)
● Organising according the market requirements
Example Heineken
Heineken example: they say: we already have a brand and a product that does well, so why should
we come up with another product that would take away sales from our og product and have a lot
of marketing costs coming with the new product? Well, if Heineken doesn’t take away sales, then
another company will. So thinking that innovating with a new product isn’t efficient or effective,
doesn’t take into account competitors.
How does all this relate to the paper of Tripsas?
1
, Creative destruction, aan de ene kant komen er nieuwe entrants de bestaande firms overnemen
met hun technologische superior products, maar aan de andere kant hebben al bestaande firms
voordelen in dat belangrijke en gespecialiseerde complementary assets bezitten.
Ultimate commercial performance of incumbents is determined by:
1.Investments in new technology
2.Technical capabilities
3.Specialized complementary assets
Main insight = Assets and capabilities do not always remain valuable and that means that you as a
company need to be able/need to be willing to let go. To leave the past behind. → Willingness to
cannibalise = the willingness to burn up the things you have been successful at, because they will
not be helpful in the future.
Managerial myopia (bijziendheid) = obtaining short-term gains rather than long-term profits.
● Een marketingbijziendheid op het verkopen van producten en diensten, ipv dat waar klanten
daadwerkelijk naar opzoek zijn
Core capabilities = the knowledge and skill that resides in an organisation, on which the activities of
the organisation rely (such as distribution, platforms and technology).
Core rigidities (stijfheid) = the dark side of core capabilities revealed to external events when new
competitors take over (such as a better way to serve customers, new emerging technologies and
political changes).
● Develop new products the old fashioned way
Complementary assets = things that the incumbent(=betrokken partij) has and that are hard to build
up for new entrants.
Cannibalisation = phenomenon in marketing in which the introduction of a new product ten koste
gaat van het al bestaande productassortiment
Market orientation = the thing in the market where you focus on (either customer orientation or
future market).
2
, Customer orientation = market orientation that focuses on current customers (short-term).
Future market focus = market orientation that focuses on the market in the future (long-term).
Lecture 3 - Adoption
Technology Acceptance Model (Davis)= describes the process towards use of a technology and the
determinants of this (especially used in information systems).
● Perceived usefulness = Do I think that this innovation is going to help me in that particular
job that I have to do? If I think that, then yes I have a positive attitude, behavioral intention to
use etc.
● Perceived ease of use = How easy is it to use the innovation?
● Theory of Planned Behaviour = model of Ajzen that describes the determinants of planned
behaviour based on intention (formed the basis for the Technology Acceptance Model).
Adoption theory (Rogers - Godfather of innovation theory!) = model that shows the adoption of an
innovation over time over several adoption categories (wide set of innovations, more extensive).
Overeenkomst tussen TAM en Adoption theory Rogers: These are all perceptions about the
innovation that determine whether we would adopt to it or not.
Adoption = using it on an individual level, making the decision of making use of an innovation.
● But it is not operational like that. And according to the TAM, it is just the intention. It is easier
to measure intention instead of behaviour. So it is more the intention to adopt.
Adopter category = group of customers reacting in a specific way regarding the adoption of an
innovation, sharing characteristics related to:
● Socio-economic (income, age, education)
● Psychological (product involvement, innovativeness, empathy)
● Communication (use of mass media, size personal network)
Diffusion = the adoption on a market level, which is the spread of the innovation over time.
3
