Marketing practices

The marketing and sales departments are the eyes and ears of the company in the marketplace. They are part of the market intelligence system that keeps company officials informed about the rapidly changing conditions in the micro and macro environment. The gathering of this information is usually casual, depending on the individual’s own interest. This may consist of market gossip, newspaper and trade reports, clues from the field force and information from outside sources. The information is often random and sketchy. The company may learn too late about a dealer’s need or a customer’s changing aspirations or a competitor’s aggressive move, to respond effectively. Stars are able to excel due to their practice of the following: • Training sales staff in the process and systems of collecting information • Using the internet, media and contacts to gather all available information • Buying information from specialized market research companies

Listening to the customer

Stars made regular use of market research to source new product ideas. Market research enables the company to understand a marketing problem better because customers spark off innovative ideas faster than any other resource. New product ideas are likely to emerge from the marketplace during research. This is because changing fashions and improved communication networks are creating new aspirations among customers. This information has to be solicited, as it will not flow or be recognized in the hustle and bustle of chasing bottomlines. Careful observation, interpretation of information, and recognition of opportunities is the key to success. Stars alone had a method of systematically measuring the levels of customer satisfaction and incorporating the customer’s voice into product development. In addition to market research, Stars also utilize methods like Tapping Customer Creativity (TCC). Understanding customers and measuring customer satisfaction levels are extremely important for success in the market place. When we study innovation across the globe, we find that rich countries are on top of the list. But poor countries need innovation for their survival. Innovation is crucial to Indian companies because of the chronic lack of resources. Unctad’s Innovation Capability Index puts China at 72 and India at 83. The World Bank has India at 26 and China at 57.

Impact of Innovation on the bottom line

The profits of Stars grew faster than the profits of Aspirants and Non-starters. Stars also reported higher levels of employee satisfaction, lower levels of employee turnover. Additionally, employees of Stars had great faith in the quality of their products. Innovation Stars are on a positive cycle in which increasing profits and high employee morale reinforce each other.

Factors That Differentiate Stars

Stars were very positive about their company and its future. They believed that the quality of their products was higher, and that their market share was increasing. Employee satisfaction levels were high because people were committed and engaged. Some of the other factors that differentiated Stars from Aspirants and Non-Starters were: • Stars had a greater belief in the need for creativity in the organization. • Innovation was clearly mentioned in their mission statement. • They systematically measured customer satisfaction, and used this information to make course corrections. • They spoke directly to their customers. • New ideas were often obtained through market research. • They made use of outside consultants. • They used cutting-edge technologies to impact bottom lines. • They were able to ensure that different departments worked together. • They excelled in environmental scouting for ideas. • They had a shared process of idea generation.

Aspirants and Non-starters

Aspirants: These companies recognize that innovation is integral to success in the marketplace, but have not put in place, systems to drive innovation. These companies want to be innovative, but don’t know how. Many of the companies surveyed fell into this category. These companies have the potential to be much more successful. Non-Starters: These companies do not recognize the importance of innovation.

Innovation Stars

Employees at a number of India’s top companies responded to a survey that gauged the innovativeness of their organizations. Based upon the responses to the survey, companies were classified as Innovation Stars, Aspirants and Non-starters. Innovation Stars were found to be more profitable, to have more satisfied employees and to have much lower employee turnover. Innovation Stars: These companies excel in all areas, tangible and intangible. Such companies are characterized by high profits, superior quality of products and services, high levels of creativity, brilliant marketing practices, strong brand equity and image, wide market presence and low employee turnover. The Star is an extremely innovative company, which has succeeded in maximizing innovation in all areas of its operations. The climate of such a company is extremely nurturing and rewards creativity while being supportive of experimentation. People working there are excited about going to work; they are thrilled about their company’s future.

The 10 Commandments of Innovative Thinkers

• The capacity to truly respect another’s ability to think. • To create a positive field where others can think • The capacity to explore alternatives rather than supporting existing facts. • Never to hold non-negotiable opinions • The capacity to see the useable parts of the most radical ideas • Becoming aware of your prejudices and assumptions and eliminating them • Create movement in a situation like throwing a pebble into a pond • Love, respect, appreciate yourself • Learn the mathematics, the tools of innovation. • Involve all through, participation and commitment