The concepts of marketing innovation and strategic competitive advantages are co-related to each other. Thus to begin the discussion, it is important to define the two concepts separately. The term marketing innovation refers to new strategies as well as innovations in terms of marketing which is more advanced and completely different from the previous marketing strategies (Gupta et al. 2016). The term innovation itself implies a change. Thus it is necessary that strategies in the name of innovations must imply significant changes. On the other hand, strategic competitive advantage alludes to the advantage that a company gains over the other competitors in the market. the advantage can be gained several other means such as offering value service, lower price rate, greater benefits and so on (West, Ford and Ibrahim 2015). The measures that are taken in terms of competitive advantage are generally set strategically.
The relative importance of marketing innovation and competitive advantage
It is apt to state that considerable benefits are brought by marketing innovations and strategic competitive to business since it determines the growth of the company. In order to attract new range of customers, new-age companies essentially focus to seek innovative ways of marketing products or services. On contrary, Urbancova, (2013) states that being the ideas are new they are more effective to keep a hold on the existing customers. However, West, Ford and Ibrahim, (2015) argues that the adoption of new ideas not only helps to draw the attention of customers but it assist businesses to remain in an advantageous position as far as competition is concerned. For instance, Coca- Cola took the ‘One Brand’ strategy global while introduced the ‘Taste the Feeling’ campaign to remain ahead in the competitive industry (Hobbs et al. 2018).
The 4Ps of Innovation space
As the beverage industry is growing in a rapid speed with strong competitors, in order to hold its customer base, Coca-Cola uniquely used the emotional aspect while advertising its products implying that the products is something more than mere soft drink and creates a bond between two human being (Massa and Testa 2017). Thus it follows the model of 4ps in terms of innovation mix. Strategies are taken to improve product, position, process and paradigm (Bucciarelli 2015).
Product-Strategies are taken in order to assure that the incremental change is implemented.
Position-This segment deals with the overall aspect of present position of the product and the business in the industry, in the context of the implementation of change.
Process-Process refers to the entire steps of offering the product or the service. It takes under consideration supply, workflow and other aspects related to the change to be implemented.
Paradigm- The last P refers to the whole mapping of the innovation. It relates with the mental model that frames actions for the change.
As sustainability has becoming very crucial within the business sphere, in terms of innovation Coca-Cola can use bio-degradable material for packaging the product in order to maintain sustainability (Junge, Severgnini and Sørensen 2016). The packaging can also implement art in order to make it more attractive. Therefore, it can be said that competitive advantage is one of the most important factors for businesses (Gamble, Thompson and Peteraf 2013). Strategic competitive advantage can be termed as recognition that determines whether the company provides quality products or follows lower price strategy in order to compete with the rival companies (Urbancova 2013). Since strategic competitive advantage includes several aspects like planning as well as coordinating thus it assures successful marketing strategies to hold strong position in the market (Gupta et al. 2016).
Thus to conclude it will be apt to assert that marketing innovations and strategic competitive advantage are integral parts of business strategy and both of the concepts are closely related to each other. In order to set the marketing strategies to attract the attention of the customers, businesses must consider these two aspects.
List of References
Bucciarelli, L., 2015. A review of innovation and change management: Stage model and power influences. Universal Journal of Management, 3(1), pp.36-42.
Gamble, J.E., Thompson, A.A. and Peteraf, M.A., 2013. Essentials of strategic management: The quest for competitive advantage. McGraw-Hill/Irwin.
Gupta, S., Malhotra, N.K., Czinkota, M. and Foroudi, P., 2016. Marketing innovation: A consequence of competitiveness. Journal of Business Research, 69(12), pp.5671-5681.
Hobbs, T., Roderick, L., Vizard, S., Millington, A., Lawley, J., Rogers, C., Joseph, T., and Joy, S. (2018). Coca-Cola takes ‘One Brand’ marketing strategy global with 'Taste the Feeling' campaign - Marketing Week. [online] Marketing Week. Available at: https://www.marketingweek.com/2016/01/19/coca-cola-takes-one-brand-marketing-strategy-global-as-it-unveils-new-tagline/ [Accessed 21 Jul. 2018].
Junge, M., Severgnini, B. and Sørensen, A., 2016. Product?Marketing Innovation, Skills, and Firm Productivity Growth. Review of Income and Wealth, 62(4), pp.724-757.
Massa, S. and Testa, S., 2017. Opening up innovation processes through contests in the food sector. Business Process Management Journal, 23(6), pp.1290-1310.
Urbancova, H., 2013. Competitive advantage achievement through innovation and knowledge. Journal of Competitiveness, 5(1).
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage. Oxford University Press, USA.