The importance of innovation in modern society cannot be negated. There's been a lot of research for various types of innovations. Development in marketing strategies is one type of innovation which includes been analyzed often by the experts. Corresponding to Halpern, marketing invention may be defined as novel methods by which businesses can promote their product with their customer bottom part. (Halpern, 2010). The target of this thesis is the value of innovation in marketing strategies keeping because the progressive strategies conceived and applied by Tesco. The study questions are: Is Tesco employing the traditional marketing tactics or it includes incorporated technology in its marketing strategies? What is the current marketing advancement strategy utilized by Tesco? Is Tesco's marketing advancement strategy successful? Did the business gain any competitive benefit over its competitors through the use of marketing development strategies?
Table of Contents
1. Section 1: Introduction
In the modern society, innovation is considered a burning concern (Bessant and Tidd, 2007). Corresponding to Bessant and Tidd, invention can be explained as the method of transformation fresh notions into helpful exercise and employ them, in terms of progressive products, strategies and facilities. Various researches can be found on this issue of management of invention which in turn presented many ideas regarding innovation. These include but are not limited to ideas which pertain to types of innovation, tools available for assessment of functionality which a corporate has regarding innovation, the advancement process etc. Although various types of innovations can be found today, research has typically kept its concentrate on advancement of process or product (Brown, 1995). Among the many types of improvements, Marketing innovation is considered an important type (Halpern, 2010). As identified by Halpern, the novel methods where businesses have a tendency to reach its customer bottom part is named market innovation. However, sometimes, marketing innovation is recognized as a sub-part of product creativity (Tidd and Bessant, 2009) however, hypothesis and information concerning marketing creativity is deficient in prose. The target of the thesis is need for creativity in marketing strategies.
Organizations and nations have advanced based on creativity; therefore one can't refuse the importance of innovation. Breakthroughs in technology and development have grown to be an essential requirement of success which is usually known by companies, policy-makers and experts on day-to-day basis. The governments have increased their focus on invention and the subject areas on technology are described frequently by the government authorities (Swedish Government 2008).
The term advancement is generally defined in another way by different authors and is labeled in a variety of types. Schumpeter (1934), an Australian economist as well as the pioneer of invention management described invention as creative devastation. Five aspects of the terms were given by the author. Firstly, the intro of new commodities where either the customers are not familiar with the merchandise or the quality of the product is enhanced. Secondly, for the creation of the merchandise new method or technology is released and it also includes the new way of managing the merchandise commercially. Then shifting, the third aspect involves the merchandise market is improved where new enterprises enters the market. Lastly, new sources of raw materials for the production of the product are improved.
Tidd and Bessant (2009) offered a representation of the procedure of technology comprising of four levels: generation of fresh thoughts or ideas, selection of the best possible idea, implementation of the selected idea, capturing the benefit intended from the theory.
Tesco was established in 1919 by Jack Cohen when he made a earnings of 1 by providing surplus groceries worthwhile 4, kept on a stall in London. Five years later, Tesco appeared as a brand name when Cohen imported tea delivery from Mr T E Stockwell in 1924. The name Tesco originated by merging the initial letters and simply five years later, Mr Cohen could open a retail store called Tesco in North London. Tesco kept grasping the UK's market and by 1990's Tesco was children name with a trustworthiness of extreme marketing and a tough rival of UK's primary grocery shop Sainsbury.
In the entire year 2000, the state website of the company, Tesco. com was published on INTERNET, giving Tesco a global presence. The business continued to open up new ventures and introduced new products every now and then which included electric powered items, clothes and options for personal funding. In the year 2004, Tesco opened its first twenty four hour store and also exposed ventures into other countries including Czech Republic and Poland.
US market was another aim for of Tesco where in fact the company opened a fresh project by Tesco the name of "Fresh & Easy". Furthermore, Tesco also made its presence experienced in more than thirteen countries worldwide. The extensive network of Tesco in UK can be dreamed by the mere simple fact that all except one postcode in the country have Tesco's presence. Therefore, Tesco is undoubtedly the largest dealer belonging to UK with earnings of more than three billion pounds. Globally, after Walmart and Carrefour, Tesco is definitely the 3rd largest merchant on revenue base and 2nd greatest on profit foundation. The magic of Tesco's global success may also be attributed to its diversified consumer products such as clothing, gadgets, software, dental care services, groceries, internet telecoms etc.
Tesco is one of the largest UK supermarkets and is well known for its quality and innovation. The organization has its food businesses as well as non-food businesses which have shown to be successful. The organization has initiated an online business and recently, the business has committed to bank and mobile industry. The development has led to Tesco mobiles and Tesco finance institutions in the United Kingdom and its loyalty scheme was a good portent for CRM program that was launched in '09 2009 (Marketing week 2012).
According to Krish (2009), the marketing of Tesco is focused on innovation as well as how to relate or create connection with the prospective market. The principal focus of the business is to satisfy the needs and needs of the prospective customers. The innovations of the company included own-label products: centralizing and computerizing syndication systems. The business developed shopping centres beyond your major cities to provide needs of all the customers. Tesco created in-store television adverts of the merchandise in which suggestions were provided to the clients. Based on the reports, around 70% of the purchase decisions are created in store. The marketing creativity strategy was successful as it received customers where they were most vulnerable.
Current Issues
Tesco aimed its efforts to improve marketing such as the first 90 days of the financial calendar year (2012) the sales fell by 1. 5% in the first thirteen weeks. A plan was designed to build a much better Tesco by Philip Clarke (CEO of Tesco) in April 2012 that was accountable for the 1 billion. It has come to the understanding of the company officials that the marketing of the firm was unclear, irrelevant and not successful. The plan had six details included in this were advancements in marketing, products as well as stores. For that matter, the company chosen additional 4300 personnel at the uk shops, innovated more than 100 stores to increase the store experience of the clients and offered training to the increased personnel. The effort resulted in increase of 2. 2% in the group sales which includes Tesco's international businesses through the three months. The company experienced a robust performance in the Asia (Baker 2012). The likes, preferences and standards of living of customers have changed as time passes which can become a risk and chance of Tesco. You will find other retail stores such as Sainsbury, Morrison's and Sweden countrywide stores that can become a danger to the sales and progress of the company (Finne 2008).
Prior Issues
In June 2002, the company was costed as well as found guilty of charging slotting fees to transfer manufacturer's products. Tesco and also other supermarkets was in charge of charging accessibility fees to suppliers, product display fees and advertising fees. The Tesco Lotus started to display own manufactured brands next to the similar products with different brands. The company was costed with the situation of exploiting suppliers and was also accused of contempt of reselling whale, porpoise and dolphin meats in 200. The study suggested that the meat contained toxins for customers.
1. 1 Research Question
The focus of this study will remain on the subject that is the value of creativity in marketing strategies keeping in view the strategies utilized by Tesco, the scope of their implementation, the success of the implemented strategies and the competitive advantage gained by Tesco over its competitors in the same field. Tesco prides itself with ground breaking marketing strategies utilized and the huge benefits gained through such implementation. This "claim" of the business helps it be a best corporate for research and study in this field. The success and damage reports associated with Tesco are perfect cases for comparing the theoretical knowledge associated with impressive marketing strategies and their execution in the real life framework.
In order to describe the value of innovative marketing strategies by learning Tesco as an example, the thesis structure will be developed in that format to be able to answer following research questions:
Is Tesco using the traditional marketing practices or they have incorporated innovation in its marketing strategies?
What is the existing marketing innovation strategy employed by Tesco?
Is Tesco's marketing invention strategy successful?
Did the business gain any competitive benefit over its competitors through the use of marketing innovation strategies?
1. 2 Research Goals and Objectives
The goal of the study is to analyse the current situation of Tesco and whether the company has utilized the utilization of marketing invention techniques. The company is currently facing a strong competition from Morrison's, Asda, Sainsbury, etc. The study will point out the competitive advantage the company has over its competitors and whether it has adopted appropriate marketing strategies which are based on innovation to maintain this competitive benefits. There were alterations in the lifestyle and consumer likes which can affect the retail industry. The study will determine the effects it had on Tesco's sales and growth.
1. 3 Rationale of the study
In the earlier times, researchers and theorists considered technology simply as era of novel ideas. However, with an increase of research in the field, many types of technology have been provided which explicitly dispute that generation of new ideas is only one tread of the technology process. Such models include Development funnel by Wheelwright and Clark (Wheelwright & Clark, 1992), the Invention pentathlon platform by Goffin and Mitchell (Goffin & Mitchell, 2005) and an over-all model of invention process shown by Tidd and Bessant which identifies innovation to contain four steps divides the development process into four stages; technology of fresh thoughts or ideas, collection of the best possible idea, implementation of the determined idea, capturing the advantage intended from the idea. During the invention process the company must have complete information about their marketing position and thereby, the resources should be allocated properly to get absolute advantages. The advantages help the organizations in the noticing the aims of the marketing advancement. Therefore, it is imperative to concentrate on the value of development in marketing and keep give attention to how impressive marketing ideas and techniques can be carried out in order to raised serve the clients and the marketplace. Usually, big businesses have shifted from traditional varieties of marketing and are definitely more centered on the ways where book marketing strategies can be implemented in order to gain benefit from the market. It is a known fact that the organizations which execute ground breaking marketing strategies are able to sustain competitive edge over their competition. Therefore, this research has been carried out in order to discover how companies are implementing innovative marketing strategies and what kinds of benefits are being loved through this implementation. Moreover, the drawbacks of such kind of execution are also studied in order to give a genuine picture of the situation in hand. A special case of Tesco has been examined to evaluate the value of technology in marketing strategies. In addition, the thesis is designed to study the novel inclinations of businesses in conditions of market strategies with main emphasis being on development.
1. 4 Research Methodology
In this section, the methodological things to consider of the researcher are being viewed. To be able to obtain a detailed background knowledge, the importance of invention in marketing strategies is to be used as a communication tool, a literature examination will be completed. The secondary sources of information in books analysis will at first provide information in what innovation is and exactly how they have gained significant importance in the 21st hundred years. Furthermore, the literature will provide the required knowledge about the invention, marketing management, development implementation and how these strategies have been supporting the organizations to attain the desired results.
However, a literature review alone will not serve the key purpose of this research which is to determine the value of technology in marketing strategies. Hence, as a means of key data collection, in-depth interviews would be conducted of Tesco professionals from three different Tesco stores located in various areas. Both key and extra data is of qualitative dynamics as advancement in marketing strategies is seen as a idea rather than formula that delivers solution based after certain components.
The chosen approach is justified through the inspection of benefits and drawbacks of the several research methods. Further, restrictions of the chosen research method will be stated.
1. 5 Company of the study
This dissertation comprises of a total of five chapters. The organization of the chapters is really as per following design:
1. 5. 1 Section 1: Introduction
In this chapter, the goal of the analysis is briefly touched after and the visitors are familiarized with the term innovation process in marketing and its steps as elaborated by researchers. The aims and objectives of the study are also elaborated in this section which is accompanied by a short rationale for the study and the study methodology.
1. 5. 2 Chapter 2: Books Review
In this chapter, past literature regarding the topic is assessed. This review is organised under different matters and headings for easy understanding. The prior research work pertaining to innovation, market invention and implementation of marketing development are mentioned at period.
1. 5. 3 Section 3: Research Methodology
This section consists of the research methods adopted and a short discussion on research aims. In addition, research techniques, research methodologies and research methods have been explained.
1. 5. 4 Chapter 4: Research and Discussion
In this section, the data which is obtained through various research techniques, is examined which is accompanied by discussion of the info. The information accumulated through various resources is also examined in relation to literature review. In the end of this section, pertinent findings based on the research email address details are presented.
1. 5. 5 Chapter 5: Summary and Recommendations
The concluding chapter also concludes the study with the addition of all the results and explaining the limits of the analysis. Additionally, in the light of findings mentioned in the previous chapter, pertinent suggestions are also forwarded.
2. Section 2: Books review
Around 80 years ago for the first time the theory of development was presented by Schumpeter (1934) and it is still considered the essential theory of invention whose rationality is widely known. Today, the five areas of the theory is split into five types of technology such as organization innovation, source of information allocation creativity, process advancement, product innovation and marketing innovation (Xi 2005).
2. 1 Defining Innovation
Many explanations of innovation were given by experts such as Bessant and Tidd (2007) identifies the procedure of creativity as the translation of impressive ideas into useful practice and therefore, use them for the introduction of services, services, etc. the study considered that the technology of new ideas can not be considered as technology. The concentrate was on distinguishing between creativity and invention. The major difference explained by the writer was the keeping the ideas into useful practice.
Joseph Schumpeter is definitely the creator of management inventions. He was an Austrian economist who identified innovation in a fresh and novel way by describing it as creative explanation (Joseph Schumpeter, 1934). Schumpeter further continued to describe invention from five different facets:
Introducing such a product in the market which is unfamiliar to the clients. Or introducing something with renewed quality.
Introducing a novel strategy of production which include latest technology and novel ways to manage the product on the market.
New market starting. The opening of new market will not only make reference to a market which did not exist in the past but it also means a market which does exist but the projects have never been introduced earlier.
Discovering a fresh resource to form raw materials for the product. Similar to the new market for the product, fresh source does not only mean that the source should first be created but does mean such resources which performed existed but were never used as a organic material.
Re-organizing a business for example creating or closing the domination of a business.
The theory presented by Schumpeter is still considered the essential innovation theory due to its own uniformity, even following a lapse greater than seventy years. However, later on researchers have provided the abridged version of this theory by defining technology into five basic steps namely: advancement of product, innovation of process, creativity of marketing, innovation of source allocation and development of firm (Xi, 2005).
Four types of advancement were stated by Tidd and Bessant (2009) and are also called 4p's of technology such as product creativity, position development, process technology and paradigm advancement. Every researcher has shown his meaning and kind of development but there are two types of advancement: process and product technology, which are almost mentioned by every researcher (Johne 1999; Propris 2002)
2. 2 Marketing Management and Marketing Innovation
The scholastic purview of development does not frequently describe the term marketing creativity. Therefore, prior to delving into the dialogue of marketing innovation, it is known as prudent to discuss the idea of marketing management. Information about marketing management will assist us in appreciating the idea of marketing innovation and its own importance in today's business.
2. 2. 1 Marketing Management
Marketing management is thought as procedure of determining the marketing ambitions for an enterprise firm and stakeholders by the According to the definition given by American Marketing Relationship (2004), marketing management is the process of preparing marketing goals for a business and its own stakeholders by enabling the resources available with the organization and keeping in view the marketplace opportunities. Moreover, planning and execution of activities in order to perform the ambitions, and gauging advancements towards the achievements of goals is also a part of marketing management. Marketing management is a cyclic process in order to allow the business to revise its strategies based on the changing market requirements.
A famous manifestation known as marketing mixture was coined by experts who considered the vendors as objects of research. McCarthy refers to the rudiments of marketing mix as product, price, place and campaign (also known as the Four P's) (McCarthy, 1975). In later periods, the clients became the study objects rather than retailers and the rudiments of marketing blend had become known as Four C's (Lauterborn, 1993): consumer, cost, convenience and communication.
Li, C. J. (2006) classified the actions of marketing self-control into three diverse categories:
High-end market which targets marketing brand, design of the product and offer manufacturing in accordance with the requirements of the marketplace. Furthermore, it also includes the Make forecast and advertising of the product in order to get customer bottom, customer loyalty, promote awareness regarding the brand and institute the image of brand. In short, high end market is the brand strategy of the company.
Mid-market targets execution of the brand strategy of the business. The main emphasis of the mid market is on the development of consumer item, its sale to the customer and the assistance provided to the customer.
Terminal market completes the purchase of the merchandise which is delivered to the customer. Terminal market is actually the finish type of the sales channel where in fact the manufacturers show the finish product to the customers. At times different brands of the same item are viewed in a terminal shop for given more options to the clients to choose from. Therefore, terminal market is the place where different brands struggle to get the mandatory customer attention; which in turn increases the deal of the brand.
CRM or customer romantic relationship management is another term widely used in marketing management. It depicts the client concentrated business strategy which is employed to gain customer bottom part and hold on to customers by providing them fringe benefits e. g discounts through loyalty cards etc. CRM requires the participation of personnel, technology and techniques to start good customer romance which in turn boosts the brand image.
2. 2. 2 Marketing Innovation
There is not a lot of literature on the marketing invention and experts didn't give attention to the marketing invention strategies. The research on marketing advancement began in 1980's although primary focus was on the functional aspects of the idea and no standard theory was developed for the idea (Qin 2008). Various analysts have given different theories and thoughts about the marketing creativity concept. Relating to Johne (1999), marketing development focuses on augmenting the mixture of target market segments and attempts to find how chosen market could be served effectively and successfully. The primary software of the idea is to recognize the new potential market segments and the ways by which the new markets could be served. The marketing technology is accountable for identification of the potential markets by using the market segmentation which in marketing is liable for the dividing the potential markets into manageable and smaller chunks. The extra reason for the marketing development focuses on offering the potential marketplaces in the best manner easy for that your buying preferences of the clients are pre-requisite.
The author explained that for the marketing advancement to reach your goals the suppliers atlanta divorce attorneys industry should comprehend the altering needs of the customers and then, concentration should be dedicated on having innovation. The innovation in marketing can help the suppliers in merging products management with respect to market opportunity examination. The advancement in marketing not only helps the introduction of the business but also ensures the performance of the prevailing business.
2. 3 Quarrels for innovation
As per Halpern's(2010) classification and knowledge of marketing invention, it is process through which companies can market as well as represent themselves in the actual markets to probable or existing customers. It matches the actions of the businesses who try to type in the new market and therefore, innovation provides them competitive benefits over businesses. The writer stated that marketing creativity was different that market innovation and both shouldn't be considered similar.
On the contrary, Zhang (2006) described the theory as the procedure that promotes the alterations on the market structure. It spots the new potential market segments for the merchandise or services that can gratify the demand and needs of the customers as well as consumers. The writer divided the contents of the marketing creativity into two sections: firstly, the inauguration new potential market and other being the creation of new combo of market factors. Within the first the new market segments was inaugurated on the basis of different areas, products or needs as the other targets the blend of factors such as new market segments, new marketing principles, services and new marketing techniques. The knowledge of Zhang (2006) was dissimilar to Halpern's (2000) understanding of marketing technology.
Chen (2006) through his research in marketing development formed an financial analysis. According to the researcher, improvements in item and production operations as well as marketing innovations are extremely necessary for a market current economic climate. The development of new marketing techniques and tools play an integral role in the advancement of the business. These new techniques of gathering information about customers by using innovative marketing solutions and programs have allowed firms to attain customers as well as consumers more efficiently and effectively. They have enabled the use of various charges strategies that were priory not possible.
A few set of rules and ideas are required to be followed by businesses while applying market advancement (Li, S. L. 2009). The first process areas that market innovation should be a tool for providing customer value. If market technology does not gratify customers and does not provide customer value, the implementation of innovation is known as a failure. The next theory of market invention states that as a result of its execution, a wholesome competition should emerge among the brands. The third principle denotes that creativity implementation shouldn't be done just for the sake of development. Its execution should bring surplus to the business immediately or in future. And fourthly, the business enterprise companies should keep innovating and implementing book strategies even in the wake of brutal competition in order to endure.
The author made a model where there have been two important elements: expresses when a new marketing technology or program that enables a firm to acquire consumer information more efficiently but there's a possibility that the benefits associated with the technology might damage some of the consumers while stands for a new trading method where there are reductions in consumer purchase costs but it doesn't benefit's the organization because of the strategic result of the rival.
As the elements were seen and equilibrium between them was analysed, it was found that the consequences and bonuses of marketing invention change from those of process or product inventions. The author explained that the marketing development happens only when the organization benefits from the invention which may also be not possible if there is an adequate hold off for imitation. The researcher focused on the importance of marketing tools, cost, consumer information and imitation.
2. 4 Implementation of Marketing Innovation
The implementation of a marketing innovation strategy or strategy requires few principles that an firm must follow which were summarized by Li (2009). First of all, the process of the marketing technology should provide value to the consumers as well as customers. The success of the marketing invention is determined by the satisfaction it provides to the customers and if the innovation fails to deliver the satisfaction, it isn't considered an effective marketing innovation. Second, the marketing innovation should maintain providing competition to the market. Finally, the marketing technology should succeed as well as successful to the company. The concentration of the company should not be on the invention but on the marketing innovation which means that the development should reap income for the organization at present and moreover, in the foreseeable future. Lastly, the process of marketing innovation should be sustainable. The altering fierce marketing competition, dynamics and rapidly changing market condition force the firms to keep innovating so the survival is possible.
Jiang (2008) considered proper choice was very important to the marketing innovation. For the attainment of the expected goals, the firm should create group of associated procedures which can help in the management of the marketing invention and can also help in the minimization of the tactical risk. The major known reasons for the strategic faults of various companies were the failure to withstand marketing innovation. To form an effective strategy the company must understand its marketing position, the availability of resources and competitive advantages/ innovation benefit.
Tian (2007) mentioned approaches for the marketing advancement in his analysis. He figured the markets consist of three main elements including the people with demand, paying capacity and buy desire. Therefore, the marketing advancement can be transported through these three elements. The author formed a comprehensive research on the marketing invention where five areas of the idea were focused. The first aspect contains the innovation of the product itself. Secondly, aims of the creativity should be produced that entails the marketing position of the invention. Finally, the new geographical position of the advancement should be noticed which will ensure the location of any potential market. The positioning is an essential requirement i. e. if a market is saturated or encounters a competition then it allows the organization to improve the geographical position for the product which is more suitable for the sustainability of the commodity. Thus, the company's future development is guaranteed. The fourth aspect entails the technology of the distribution channel. Based on the creator, the aspect is definitely ignored by the companies. The aspect includes the quality and types of distribution intermediaries and channels that assist the procedure of the marketing innovation. Lastly, the advancement sales promotion can be an important factor for the sustainability of the advancement process which is a widely reviewed and implemented development area between various firms. The region includes the creativity of marketing price strategies, promotion, and promotion programs.
The target of the author's analysis was on the analysis of the business's situation. The firms can chose innovative individually or concurrently. The positioning and process innovation needs to be included in the marketing innovation but usually the companies cannot differentiate between both aspects. It goes without saying that a market cannot are present without the occurrence of a product but the review didn't focus on the positioning, product and geographical aspects of the marketing advancement. According to the studies, the author's previous two aspects were more useful compared to the other three aspects of the marketing development field.
Du (2008) like Tian (2007) also provided some important marketing technology areas. Although aspects like route, distribution, campaign and product were considered important however the emphasis of the general public relations. The general public relations strategy also needs to be progressive for the sustainability of the businesses. The augmentation in the public relations can enhance the marketing innovation programs as it leads to the cooperation between government authorities, community, enterprises, press and middleman. The main area of the public relation strategy is the psychological marketing feature which attempts to customize the marketing plan in line with the needs and wishes of the customers. It results in the buyer purchase of the products by using emotional demand tactic. The analysis also centered on the organizational technology. The feature is in charge of the effective environment of the marketing invention which sometime alters the organizational composition as well as human resources. Thus, the results is efficiency and advancement effectiveness.
According to Li (2005), the marketing creativity strategies were considered important however the major concentration was on the strategies that handled the learning resource allocation for the marketing advancement. During the invention process the company should have complete information about their marketing position and thereby, the resources should be allocated properly to get absolute advantages. Advantages help the organizations in the knowing the targets of the marketing technology. Duke (1990) stated the importance of customers as their behaviour in the marketing technology aid organizations in learning and understanding their preferences. The complete understanding of the customer behavior can be a success factor for organizations.
Yong and Zhao (2004) provided several ideas to the Chinese language companies which could enhance the execution of the marketing invention. Firstly, the opponents should be analyzed properly. Secondly, there has to be imitation and enhancement but the invention strategy of an organization should not be copied. Furthermore, effective ideas and techniques must be implemented and really should not stint the investment. Finally, the machine should be improved and integrated with the marketing thinking. Tang (2008) with the research on pharmaceutical industry make to the final outcome that if the firms wish to enhance their center competitiveness than the marketing advancement technique should be used as it contributes to gain as well as competitive advantages.
2. 5 Analysis of Innovation Capabilities in a Business Venture
How a firm manages innovation is referred to as innovation capabilities (Tidd & Bessant, 2009). Many different types of tools can be purchased in order to determine the innovation capability of a firm for example, Gartner Research (2002) offered scorecard analysis and Gatignon (2002) shown the structural approach. Another simple but effective tool for the evaluation of innovation potential is provided by Tidd and Bassant and is named as self examination tool. This examination tool uses the human being resource of the business and gets responses from a specially designed questionnaire. Different aspects such as strategy, functions and learning are being used to investigate the answers provided by the employees. The employees are asked to answer each question between a credit score of one to seven where seven means most evident and one means incorrect at all. The results are then plotted in condition of a pentagon and the producing picture will obviously show the prevailing innovation capability of an organization.
2. 6 Avoidance of Risk in Marketing Execution of Innovation
For commercial activities, risk awareness and risk management identification are of paramount importance (Essinger, 1991). Generally, researchers feature risk and ambiguity as probable factors behind poor execution of advancement (Ghadim, 2005). Mainly, the common perils in advancement are brought on by factors e. g. employees distrust, leakage of information, market uncertainty and inability of leaders to support (Hoecht, 2006). Tian (2007) summarized different kinds of perils regarding marketing development which are as follows:
The divergence from the demand of a customer;
Market entry in an unacceptable time;
Faulty of programs of circulation;
Irrational technique for price;
Asymmetry in information;
Substandard services;
Misjudge the complexities;
Alteration in insurance policies of authorities.
During the execution period of marketing invention, the abovementioned facts should get due consideration to avoid them. Sufficient groundwork in this respect can spend less levied by perils and hazards to some extent.
3. Chapter 3: Research Methodology
This chapter elaborates the chosen methodology most suited to carry out the study of this research. Advantages and disadvantages of the study tools are reviewed. Matching to Creswell (1994), the choice of research strategy depends on the nature of the area of research. It is important to state the purpose of the research, the study question and targets before proceeding on the research approach being implemented.
3. 1. Research question
The research is based on answering the question "What is the importance of technology in marketing strategies?" keeping because the strategies employed by Tesco.
3. 2. Research Objectives
The primary objective of the research is to look at factors responsible for successful and unsuccessful execution of ground breaking marketing strategies. Furthermore, this research also investigates how companies use development in marketing strategies and also to what extent this idea is successful in providing and keeping the competitive advantage of a company. The researcher aims to analyze the extent of progressive strategies being executed by Tesco, the existing innovative strategy working and the benefits achieved by the business in implementation of these strategies.
3. 3. Research Paradigm
A paradigm is a set of beliefs which bargains in describing that the way the world works and the average person is situated in (Guba and Lincoln (1994)). Any particular research methodology is grounded in its research philosophy, which provides a theoretical basis for executing the research. Often the academics make a difference between two of the most crucial research paradigms: Positivism and Interpretivism.
The paradigm which would be chosen by this specific research is Interpretivism which is also known as social engineering.
While the positivists take an objective approach into the realities of the world and tend to ignore the context in which the subjects are operating in, the interpretivists form a far more liberal and sociology-based thinking. Regarding to positivist, everything could be analyzed in a scientific context and any finding could be obtained by forming a hypothesis about it. However, this paradigm is not suitable for this particular analysis which tries to discover about the marketing technology strategies which are implemented by Tesco in order to keep its position in the market and serve its customers in all possible ways. While the positivists approach fails to comply with certain requirements of this study, the interpretivist procedure serves the purpose well.
Any particular research strategy is grounded in its research idea, which gives a theoretical basis for performing the study. In taking into consideration the research beliefs and procedure, a differentiation is often made between positivism and interpretivism (Travers 2001).
3. 4. Positivism vs. Interpretivism
According to the positivist research viewpoint, the researcher adopts a scientific approach while observing the social habit and conducts the study within an objective manner (Travers 2001). Usually the positivists philosophy is based on a deductive reasoning where to be able to test a case, a hypothesis is presented accompanied by an empirical verification which validates the lay claim (Babbie 2005). However, Bryman and Bell (2007) also note that in a few circumstances, inductive reasoning can be seen within the positivist research where understanding of something is obtained by gathering facts, which provide the basis of laws.
In order to handle a positivists study, considerable amount of data is necessary as this particular research philosophy prefer the used of quantitative methods in order to analyze a sizable scale occurrence (Travers 2001).
The view which is natural in this overall strategy is that it is possible to measure a certain sociable tendencies without considering its context and this while studying public phenomena, the researcher can take an objective view (Hughes & Sharrock 1997). However, advancement in marketing strategies is a intricate and multi-faced strategy which cannot be studies without learning it in its context.
In compare to the positivism approach, the interpretivism methodology takes a totally different go through the world, eliciting a different response from the research workers. The interpretivists are of the view that the topic matter of interpersonal sciences like the people and their organizations is unlike that of the natural sciences (Veal, 2006). Thus, for learning the cultural world a totally different logic of the research procedures is necessary (Bryman and Bell 2007).
Because of the need for a new logic when planning on taking an interpretivist position, there's a quick need on area of the researcher to make use of inductive theory engineering which reverses the procedure of deductive process through the use of the data to create themes. As the deductive approach depends on theory to check hypothesis and validate the results, the inductive methodology uses data or observation to create habits and generate themes or templates. Thus, it can be said that as the deductive process goes from the overall to specific, inductive steps from specific to basic.
Hence regarding inductive reasoning, the researcher observes certain areas of the communal world and then discovers patterns, which are being used to clarify the wider ideas (Babbie 2005). Furthermore, it is recognized that there surely is not a one reality; rather the reality is based on a person's perceptions and encounters (Robson 2002).
While relating to this claim, another argument can be provided which implies that the facets of the world which can be clearly real human, vanish when they are examined and expressed in form of connection of factors i. e. from a target view (Hughes & Sharrock 1997). Because of this particular reasoning, the role of the researcher should be concentrated towards analyzing the many and therefore the stars, related to a particular phenomenon, put on their encounters (Easterby-Smith et al. 2002).
For this review, an interpretivist methodology is adopted to be able to handle the research. The explanation behind this choice is that it is considered that there are manifold realities that create difficulties to make measurements and thus, we can only just understand a real world occurrence by learning them with regards to the context where they take place.
An interpretive and inductive strategy proves to be more appropriate when the study is of reflective dynamics and worried about analysing reasons for success of a meeting marketing campaign before and using consumer and participant responses as principal data.
The biggest weakness of your positivist approach is that it is more challenging to analyse a cultural phenomenon by taking an objective way. It is therefore essential that interpretivist beliefs along with inductive reasoning is implemented to be able to consider event marketing from a subjective point of view. This approach sometimes appears as applicable because of this research as the potential of another event marketing campaign is being looked into. Innovative marketing strategies are largely based upon assumptions. Marketers often refer to John Wanamaker's estimate "I know 1 / 2 of my advertising dollars are wasted, I just don't know which fifty percent" (Wanamaker, n. d. cited in Luo & Donthu 2005) to spell it out the situation that the effectiveness of marketing efforts is nearly impossible to find out. Self-explanatory because of this situation is the actual fact that implementation of marketing invention is grouped within the field of experiential marketing. This calls for a dependence on adopting such an approach which tries to capture the complex communal realities underlying a sensation which is technology in marketing strategies in cases like this.
3. 4. 1 The Interpretivism Approach
While the positivists take a target approach to the realities of the world and tend to ignore the context in which the subjects are functioning in, the interpretivists form a more liberal and sociology-based thinking. Regarding to positivist, everything could be examined in a clinical framework and any finding could be obtained by forming a hypothesis about it. However, this paradigm is not well suited for this particular research which tries to discover about the marketing creativity strategies which are implemented by Tesco to be able to maintain its position on the market and serve its customers in all possible ways. As the positivists approach does not comply with certain requirements of this study, the interpretivist methodology serves the purpose well.
For Interpretivists the subject matter of cultural sciences like the people and their corporations is unlike that of the natural sciences. Thus, for learning the social world a completely different reasoning of the study procedures is required (Bryman and Bell 2007 p. 17). The interpretivism paradigm suggests that the facets of the world which are clearly human vanish when they are analysed and portrayed in form of interaction of factors (Hughes &Sharrock 1997: 102). Corresponding to Interpretivists, fact can only just be understood through a subjective interpretation and the analysis of phenomena in its environment is the key focus of the interpretivist philosophy
As explained by to Carson et al. (200l), interpretivism is majorly predicated on qualitative concepts and when considering in broader conditions, it takes into account quite characteristics of the study paradigm instead of positivism. Thus, it allows a concentrate on the context in which the subject area is functioning.
For this analysis, an interpretivists strategy would be chosen as it allows the multi facets of a reality to be observed. While the positivism beliefs ignores the studying of social context the interpretivist's beliefs allows this. That is essential for this particular research as here the study can be involved with analysing the several strategies which are used by Tesco. This isn't an objective but a subjective principle and so is not quantifiable. Thus, in relation to the interpretivist paradigm, the analysis would depend on Inductive approach and qualitative techniques. Implementing an inductive strategy would support the Interpretivist approach as based on the way researcher observes certain aspects of the interpersonal world and then discovers patterns which are used to make clear the wider ideas (Babbie 2005). Furthermore, it is recognized that there surely is not a sole reality; rather the reality is based on a person's perceptions and activities (Robson 2002). In case of inductive approach, theory is primarily used to build up the central research question however, unlike deductive procedure the theory is never to test the theory, rather, to accumulate data first and then form theoretical ideas from it. After the data is gathered, theory is developed to make clear findings.
These methods are also more desirable as the analysis is concerned about an organisation and it could be well stated that organizational as well as cultural reality is extremely intricate (Yin 2003), and can only just be studied partially and understood within an imperfect manner (Perryet al. 1999), thus, a need develops to investigate the various perspectives of 1 single certainty.
3. 5. Research Type and Strategy
An academics research can be said as being exploratory, descriptive, or explanatory (Yin 1994). However, to which category a particular research belongs to will depend on the data and information available within the study area (Wall membranen 1996). The exploratory research aims to unveil the basic knowledge within a particular area (Walln 1996) and is also carried out to explore a location about which little information is recently available (Dawson 2002). It is more appropriate when a specific problem is hard to identify and also when the relevant theory is unclear. Exploratory studies shoot for basic knowledge within the challenge area (Walln 1996). These studies are suitable whenever a problem is hard to demarcate so when relevant theory is unclear. Also, they are appropriate when important characteristics and relationships are hard to find out (Eriksson & Wiedersheim-Paul 1997).
In compare, descriptive analysis seems appropriate when the problem seems to be clearly organised and the purpose is not to form a connection between triggers and symptoms. In cases like this, the researcher knows the problem that should be investigated but merely will not know the answers (Eriksson & Wiedersheim-Paul 1997). Alternatively, explanatory research is apparently useful whenever a study is concerned about the causes and symptoms (Eriksson & WiedersheimPaul 1997). Here the study tries to identify the factors which, when put together cause a certain sensation (Lundahl & Skrvad 1992).
This particular research is partially explanatory and relatively more exploratory. This is because while analysing influential factors and detailing their relation to a potential outcome explains explanatory research. However, a weakness of explanatory research within the leisure industry is usually that the responding variables being investigated are human. While the results of the research will predict the probably outcome of importance of development in marketing, the results cannot be guaranteed.
According to Veal (2006, p. 4):
"Humans make their own decisions and are far less predictable than non-human phenomena. "
The main aim of this paper is to make informed decision on importance of creativity in marketing strategies, with a functional demonstration for the retail store Tesco. Some of the outcome of the study would depend on such high amount of factors that it can't be assured. Factors such as customer commitment, kind of product being released or specific customer experience could effect the success of the plan equally well as unforeseen activities and reactions of competitive brands. Because of this, the research is commonly exploratory in characteristics as this kind of research would allow the researcher to investigate about the many possibilities which may be driving the technology in marketing.
3. 6 Research method
3. 6. 1. Quantitative vs. Qualitative research
Quantitative research method is a study approach which is dependant on target, formal and systematic process which uses the numerical data to quantify and present studies. It usually examines the cause and effect romance (Burns & Grove 1987). On the other hand, the qualitative research methods are based on subjectivity, reasoning and will describe certain areas of a phenomenon (Cormack 1991) by adopting an idealistic or humanistic methodology (Leach 1990).
According to Denzin and Lincoln (2005), qualitative research examines the socially produced nature of reality and generates a romantic relationship between the researcher and the subject or matter being studied along with the circumstantial constraints. This specific research method looks for to answer those questions which stress how public experience is created and given meaning. Alternatively, quantitative research is more centered on measurement and research of factors that are involved in the causal human relationships and will not gives importance to the functions that are being mixed up in relationship. Therefore, it could be well said that while qualitative methods constitute a humanistic factor to them, the quantitative research is grounded in the numerical and statistical knowledge (Gephart 2004).
While making an evaluation between the two another interesting difference could be highlighted. The quantitative research approach requires the stating and verifying of the hypothesis and lowering the large items into simple variables that are easy to understand and generalize. In addition, it assumes that the occurrences are in addition to the adjoining environment.
On the other side, qualitative research is targeted at describing certain aspects of a occurrence with preserving a view to explain the subject of the analysis. Thus, qualitative research is also called phenomenology (Duffy 1985). It also believes that the occurrences or events have an association or are damaged by the encompassing event (Easterby smith et al. 2002).
As this analysis has taken an inductive methodology along with interpretivism, choice of qualitative methods appear more suitable to this study. That is as a result of features associated with qualitative research. It has been established that this study is based on a phenomenon which needs to be analyzed in a sociable context. The quantitative methods derive from measurement and figures however the target of the research is to analyse the effectiveness of marketing occasions to elicit brand awareness. This implies that quantitative methods are not suited to this research.
While prior studies have been aiming to prove creativity in marketing as a one-fits-all solution along with other people who centered on quantitative data, this review has regarded the difference in the literature for not deciding on the qualitative techniques. Hence, by taking into consideration the difference in the literature and making a further contribution to the existing analysis, this research has used a qualitative methodology. This permits the researcher to have a more forward looking rather than a simple reflective strategy.
3. 7. Research Design
According to Bryman and Bell (2007, p. 40), "Research design provides a framework for the collection and research of data. "
To gather data, Social researchers employ a number of different data collection strategies (Hox & Boeije 2005). Generally, data collection can be done by two main options:
Primary Sources
Secondary Sources
This study utilizes both of the info collection techniques in order to provide a huge amount of data. Both techniques are examined separately with advantages and cons associated with them.
