Innovationsmarketing Klausur

What do we need marketing for?

To create value for customers and build strong relationships.
To understand, predict, and meet customer needs in a profitable way.
To connect all company activities to customer benefits.

What are the 4 “P’s” of the marketing mix? Shortly explain each of the four.What are the 4 “P’s” of the marketing mix? Shortly explain each of the four.

Product – Focus on solving customer problems, not just features.
Price – Show the value, not just the cost.
Place – Make it easy for customers to get the product.
Promotion – Give useful information, not just ads.

Does only altering the price of a product create a somewhat “new” product? And if so … why?

Yes, a different price can change how people see the product.
It can affect how good they think it is, even if the product is the same.

How does price influence the perception of a product / service or customer experience?

Higher prices can make people think the product is better.
Price changes how people feel and think about the product.

Provide different definitions as to what is a “good”? What types of goods can be distinguished?

A good is something that meets needs and can be sold.
Types: material or immaterial, real or nominal, scarce or free.

What is the difference between upstream & downstream marketing? What is more important?

Upstream: finds out what customers need, early in the process.
Downstream: promotes and sells existing products.
Upstream is more important for long-term success.

Define what is an “innovation”? How does an “innovation” differ from an “invention”?

Innovation is something seen as new by a group of people and used by them.
Invention is the idea; innovation is when people start using it.

In what aspects differ innovation driven markets from “traditional” markets?

They change faster, are harder to predict, and offer smaller time windows.
They often need more explanation and customer understanding.

What is the connotation of “Coca Cola” as a brand? How does that influence product perception in blind tests and branded tasting?

Coca Cola activates the brain’s reward center through branding.
In blind tests, Pepsi is preferred. In branded tests, Coca Cola is rated higher.
Branding changes perception, not the product.

In what aspects are “real life” humans different from the model of the “Homo Economicus”?

Humans decide emotionally, not fully rationally.
They seek social belonging and act for group benefit.
Biases and emotions influence decisions.

Explain the quality signaling of “price” and how it relates to seemingly “free” products?

Higher price signals higher quality and value.
Price affects how pleasant a product feels.
“Free” is always attractive, even if the product is of lower quality.

Explain the concept of “anchoring” and provide examples.

Anchoring means that first information (like a price) shapes perception.
Examples:

• "Was 1,000$, now 700$" makes 700$ seem cheap

• Multi-unit pricing increases buying probability

What is the most important success factor in the 2-person group sales situation? What is different when the 2-person group expands to a multi person group?

Success depends on matching the buyer and seller.
In multi-person groups, group dynamics and roles influence decisions.
Coalitions and power play affect the outcome.

What is the definition of an organization? Why is marketing to organizations more complex than marketing to individuals?

An organization is a group with structure and shared goals.
Marketing is harder due to multiple people, roles, and goals.
Decisions involve complex interactions and formal processes.

What is the buying center? Which roles do we find in the buying center? What do we need to know about the buying center in a sales process?

The buying center includes all people involved in a buying decision.
Roles: Initiator, User, Influencer, Gatekeeper, Buyer, Decider.
We must identify each role and understand their interests and influence.

What is the difference between deciding under uncertainty and deciding under risk?

Risk: outcome is unknown but probabilities are known.
Uncertainty: outcome and probabilities are both unknown.
Uncertainty makes decisions more complex and emotional

Shortly explain the perfect market theory and how a competitive advantage can be achieved here.

In a perfect market, all players have equal access and compete under the same conditions.
A competitive advantage is only possible by being cheaper or better than others.

What are the different options to establish a competitive advantage and how do these materialize?

Through cost leadership (provider advantage) or differentiation (customer advantage).
Cost leadership improves efficiency and profit.
Differentiation builds customer preference and market share.

Explain Maison & Bain’s Structure-Conduct-Performance (SCP) paradigm. Is it still relevant for today’s markets and firms?

SCP links market structure to company behavior and performance.
It assumes structure determines strategy and outcomes.
Today it’s less useful due to dynamic markets and rapid change.

Explain the concepts of Porter’s five forces. What do they aim to explain?

They analyze market attractiveness by looking at:

• Industry rivalry

• Threat of new entrants

• Power of suppliers

• Power of customers

• Threat of substitutes
  They help assess competition and strategic position.

Explain the concept of path dependencies. What are strategic groups and barriers of mobility?

Past decisions limit current choices and may block opportunities.
Strategic groups are firms with similar strategies.
Mobility barriers make it hard to move between groups due to costs, image, or structure.

What component did Porter add onto the SCP? Which two types of positioning are likely to lead to over-average performance according to that?

Porter added the firm’s relative position in the industry.
Two successful positions: cost leadership and differentiation.
They offer protection and allow better returns.

What position according to Porter does Apple regarding the iPhone? What is their competitive advantage?

Apple is a differentiator.
It offers unique value through design, software, and brand.
This allows high prices and strong margins.

What is a strategic important resource? Which four conditions need to be met?

A resource that gives lasting competitive advantage.
It must be: valuable, rare, hard to imitate, and non-substitutable.

Explain the difference between (a) resource-based advantage, (b) core competence and (c) dynamic capabilities.

(a) Resource-based: relies on unique, hard-to-copy resources.
(b) Core competence: combines skills/resources for specific advantage.
(c) Dynamic capabilities: ability to adapt and reconfigure resources in changing markets.

What is the role of innovation for society? …for companies? …for individuals?

Innovation drives economic growth, welfare, and standard of living.
For companies, it supports long-term success, profitability, and productivity.
For individuals, it improves health, leisure, and life quality.

How does innovation impact societal welfare and standard of living?

It increases average wages, helps us live longer and healthier, and reduces environmental impact.
Innovation-oriented countries show higher GDP per capita.

Explain Schumpeter’s evolutionary economics.

Innovation is an internal force of economies, driven by entrepreneurs.
They cause creative destruction by replacing old structures with new ones.

Explain the process of creative destruction. What motivates the entrepreneur to cannibalize their own existing business with a new one?

Entrepreneurs replace old models with new ones for temporary monopoly profits.
This leads to innovation-based growth despite destroying existing business.

Explain the five different forms of innovation according to Schumpeter, provide an example for each.

New product – No-keyboard smartphone
New process – 3D printing
New source – Fracking
New market – Mobile phones in Africa
New organization – Dell’s direct sales

Explain the phenomenon, the emergence and the impact of a disruptive innovation.

Starts in low-end or new markets, initially lower performance but more convenient or cheaper.
Once quality improves, it replaces established products.

Explain the difference between “new competition” and “substitution” in terms of the underlying market dynamics and impact.

New competition affects small firms first.
Substitution hits large firms first by changing the entire market logic.

Explain the process of diffusion of innovation. What are driving forces and supporting product characteristics?

Adoption depends on individual behavior, risk perception, and info sources.
Key characteristics: relative advantage, compatibility, divisibility, complexity, and communicability.

Explain the Bass concept of market adoption. What is the difference between the modes of adoption he assumes? Which of the two is the more effective one?

Bass separates exogenous (media) and endogenous (word-of-mouth) adoption.
Endogenous imitation is stronger and drives most of the adoption.

Explain the five different character types that Rogers distinguishes in terms of the willingness to adopt innovation.

Innovators – take risks
Early adopters – opinion leaders
Early majority – thoughtful, pragmatic
Late majority – skeptical, wait for proof
Laggards – adopt only when tradition

Using Roger’s character types, explain Moore’s chasm and its consequence for designing and marketing innovation.

The biggest gap is between early adopters and early majority.
Crossing it needs targeted marketing and pragmatic product design to win the mass market.

Explain the concept of a “whole product”, how does it change the perception of what a product is.

A whole product includes not just the core product, but also support, extensions, services, and integration.
It shifts perception from a single feature to a full customer solution and is key to market acceptance.

What is a “dominant design” and how does it effect maturation of an early stage market?

A dominant design becomes the standard in a product category.
It drives market consolidation, enables cost competition, and signals market maturity.

To which extent do firms prefer follower vs. pioneer strategies in technology and innovation? Which of the two is more advisable?

Firms often prefer being pioneers, but success is higher when R&D is pioneering and market entry is as a follower.
Pioneer strategy is common, but fast followers tend to perform better.

What are the categories and examples for pioneer advantages?

Preemption of resources – e.g. patents, physical locations
Lead time effects – temporary monopoly, switching costs
Network effects – value grows with user base
Cost degression – lower unit cost over time
Cognitive anchoring – set standards early

Explain the concepts of non-linear lead effects: S-curve, network effects, cost degression.

S-curve – performance grows slowly at first, then fast, then slows again
Network effects – value increases with more users
Cost degression – costs drop with higher volume production

What are the categories and examples for follower advantages?

Free riding – use pioneer’s investments and market education
Dissolving uncertainty – observe market reactions and needs
Reaction to change – flexible production and no lock-in
Lower R&D cost – cheaper innovation through learning and imitation

What are characteristics of a lead market? What is in comparison a lag market? Examples?

Lead markets adopt innovations first and influence global adoption.
They show strong demand, price advantages, export potential, and similar conditions to other regions.
Lag markets follow later, adopting already accepted innovations.
Example: Scandinavia as lead market for mobile phones.

What is meant with the term “dominant logic” in a business context?

Dominant logic is the established mindset or mental model in a company that shapes how opportunities are seen and strategies are formed.

How can „open innovation“ be defined? What is the principle behind it?

Open innovation uses both internal and external knowledge to speed up innovation and open new markets.
Firms use ideas from inside and outside and also share their own.

How is open innovation different from „closed innovation“? What are the advantages?

Closed innovation relies only on internal ideas and resources.
Open innovation allows collaboration, shared knowledge, and faster progress.
It increases flexibility and uses external input for better solutions.

What is the key characteristic of the “lead user” approach? And what is “crowdsourcing”?

Lead users face needs earlier than others and help develop new solutions.
Crowdsourcing collects ideas from a large group of users, often through online platforms.
Example: LEGO allows users to submit and vote on ideas.

What are typical steps within a Design Thinking development process? How is it different from traditional development processes?

Steps: Empathize, Define, Ideate, Prototype, Test.
It is iterative, user-focused, and flexible.
Traditional processes are linear and efficiency-driven.

Why is it highly important to understand the “customer’s job”? How can it be achieved?

Understanding the customer’s job reveals real needs and problems.
It can be done through observing, asking, and letting users speak freely while testing products.

What is a “persona” in design-based development processes?

A persona is a fictional user profile based on research, representing target customers’ behaviors, needs, and preferences.
It helps guide design and development from the user's perspective.

Which are the six core functions composing a business model?

Value proposition
Market segmentation
Value chain
Costs and profit
Value network
Competitive strategy

What is a brand? Which dimensions are involved?

A brand combines product identity, organizational identity, personality, culture, and self-image.
It is shaped by values, performance, design, and how it's perceived internally and externally.

What is the target of a brand strategy? And how is a brand strategy embedded in the overall company strategy?

The goal is to position the brand clearly, create identity, and guide all communication.
It supports and aligns with the overall company strategy and functional strategies.

Which aspects are relevant in a B2B brand strategy?

It reflects the firm’s performance and offering in a communicative way.
Trust, reliability, and technical competence are key in B2B contexts.

How are companies’ core capabilities connected to their brand?

Core capabilities like product integration, service quality, or sales competence shape how a brand is experienced and perceived.

What defines a brand’s strength? What its value?

Brand strength is based on awareness, attractiveness, loyalty, and growth potential.
Brand value includes financial metrics like licensing price or acquisition price, and strategic fit.

What is the difference between a “branded house” and a “house of brands”?

A branded house uses one master brand across all offers (e.g., Apple).
A house of brands manages independent brands for different markets (e.g., Procter & Gamble).

How is the “brand inventory” different from the “brand exventory”? What role does packaging play?

Brand inventory collects brand values from company history, performance, and unique traits.
Brand exventory expresses those values through visuals, sounds, materials, and packaging.
Packaging supports brand communication via form, material, and color.

What is important when changing a brand? Which difficulties are there? Examples?

Brand changes must maintain recognition and consistency.
Risks include losing customer trust or identity.
Kodak failed to adapt its brand from analog to digital, which led to decline.

In which respects are markets changing? What are effects of such disruptive change?

Markets are becoming more dynamic, volatile, and uncertain.
Disruption is the new normal, creating randomness and chaos, which challenges traditional business models.

How does an acceleration of markets influence businesses? Why is time-to-market getting increasingly crucial?

Faster adoption rates leave no time to catch up.
Companies must act early—being late means missing the market entirely.

What “transition” must companies perform during change between innovation cycles?

They must shift from process innovation back to product innovation.
Many firms fail here because they are too focused on efficiency and stability.

How must management be different in today’s business environments?

It must be agile, intuitive, and flexible.
Knowing without fully understanding replaces detailed planning.

Which two dimensions does an “ambidextrous organization” unite? How do they manifest?

It unites exploitation (efficiency, structure) and exploration (agility, experimentation).
Firms run stable core operations while exploring new options through separate teams.

Where should “entrepreneurial teams” be used? How can they be characterized?

They operate in high uncertainty zones to test new opportunities.
They are autonomous, fast, informal, and experimental with access to corporate resources.

What kind of environment do entrepreneurial teams need to be successful? How is autonomy involved?

They need strategic and structural autonomy to move freely and challenge old norms.
This supports motivation, learning, and fast decision-making.

What is a “corporate entrepreneur”? Which characteristics can be identified?

They combine traits of managers and entrepreneurs:
analytical but creative, stakeholder-oriented, motivated by autonomy and achievement.

How is marketing being affected by the current change?

Marketing must go beyond customers and involve ecosystem stakeholders.
Brands must focus on flexibility and adaptiveness, not just product or positioning.