Marketing innovation
. Monolithic marketing challenges research included
innovation, entrepreneurship, and sustainability (Wilson & Grant, 2013). In addition,
Cheung (2014) indicated that challenges of complex monolithic services include a lack of
standardization of complex services, no ability to handle the service complexity and less
structured planning and provision, and no or only poorly documented service catalogs,
resulting in suboptimal offerings. Nike and Apple were two new brands that joined
established brands such as, Coca-Cola and McDonalds in the effort to verify the end of
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history pertaining to open-minded consumer capitalism in American diversity during the
1980s (Wilson & Grant, 2013).
Popa, Dobrin, Popescu, and Draghici (2011) indicated that innovation is a source
of competitive advantage because improving service value affects the very essence of the
organization, and institutions must adapt to social changes, the needs of citizens and
stakeholders. Innovation is a key element for growing competitiveness of global
enterprises (Ersun & Karabulut, 2013). Business leaders need to dedicate more time and
resources into innovation, as well as keep in alignment with economic globalization and
stay competitive in a growing market place (Cambra-Fierro, Melero-Polo, & Vazquez-
Carrasco, 2013). Business leaders have extended the 4P’s of marketing to the 7Ps, which
are product, price, promotion, place, packaging, positioning, and people (Ersun &
Karabulut, 2013).
Contemporary business networks evolved in the following two phases: (a) the
routinization of the production function and backward outsourcing and (b) the
routinization and outsourcing of innovation (Achrol & Kotler, 2012). Organizations
improve innovation processes by exposing technologies, responding to markets, and
making sure customers are satisfied (Ersun & Karabulut, 2013). During 2007-2012, the
business environment and technology continued to evolve network structures toward
Phase 3, where technology moves as close to consumption as possible (Achrol & Kotler,
2012). Manurung and Barlian (2012) asserted that the changes made by small-medium
size entrepreneurs included implementing radical innovation in both product
differentiation and cost advantage, which has influenced sustainability and growth in
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small-medium sized businesses in West Java, Indonesia. According to Coelho and
Henseler (2012), product and service differentiation is a source that represents a
competitive advantage and is gaining more recognition between scholars and
practitioners. Moreover, smaller competitors have gained a large share of the contract
manufacturing business in cell phones, PDAs, laptops and digital cameras such as
Amazon’s kindle and Apple’s iPad that pose a threat to the existence of printed media
(Achrol & Kotler, 2012).
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