How customer demand influences innovation in a market

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Innovation is very much important for the growth of the economy and successful in the field of the innovation process. Now a day each and every field innovation is important. Innovation is a creative process which could create the new ideas. In this section we are going to see about a innovation, innovation process, consumer preferences, framework and conclusion. Innovation has long been regarded as crucial to economic growth. Its success has also been seen as dependent on the right

Balance between demand and supply factors. However, recent structural economic changes and a growing political awareness of the fundamental importance of demand, make this an opportune moment to develop a deeper understanding of the nature of demand in the innovation process. Creativity is the fact that is not shown by a person who is superficial in all but it is the idea of the person of his own knowledge in which he is an expert. Business people came to know that they can attain profit only if people innovate new ideas in their fields. . It is for improving the business standard to the higher level and to increase the efficiency of the product.

Connection between demands and innovation in fundamentals:

In every market place there is a demand for the innovative ideas. Local, regional, global level consumers are there in a demand depend upon their own products. In this section, we consider why innovation and a deeper understanding of consumer influence on the innovation process are important. To make the innovative ideas successful a proposition must be need. That will be used to balance both the supply and the demand side factors. We need a lot of marketing facilities, conditions, labour skills, cost and availability of materials. In demand factor there are three main mechanisms. 'Demand' is a slippery analytical construct, particularly when understood as a dynamic force which is mainly in the forms of propelling cultural, social and technical innovations. In every innovation the people used to get benefits in their own way according to their demand. We use the term 'demand' here to refer to what businesses often call 'consumer voice': consumer wants, needs and preferences for goods and services. Here the term demand mainly deals with the people preference for their products and goods. At most of the times in difficult economic times aggregate demand reduces in sectors. Innovation may reduce these demand crops at these crucial times in many sectors. Some factors, including the origins of the demand (consumer, business, or government), size and sector of an organization, formality of processes for innovation and type of innovation, emerged from the case studies as potentially differentiating factors in the way in which consumer needs and preference influence innovation in organizations. The mediator should be there to convey the innovations to the people in the first method. We mainly suggest that the role of demand in innovation is likely to differ depending on whether the relationship between on the proximity between the consumer and producer. Demand is essential for the successful exploitation of ideas. Demand is the necessary condition for the successful exploitation of ideas. Without consumer uptake innovations would not be viable. For back office process innovations, consumer needs may be less directly relevant, but ultimately even they can indirectly make goods and services more attractive, by reducing costs or response times. It is too easy to assume that consumer demand grows automatically, even if at times of economic growth this assumption goes unchallenged.

Innovation process and consumer influence:

We explore the role of the consumer in the innovation process. The process of innovating is complex. Before turning to the influence of consumers on ideas and innovation, it is worth briefly looking at the innovation process and gaps in our existing knowledge about it. We have to study about the present trends in market and we should collect lot of information about the field which we going to plan for innovation. There should be a effective communication and not only listening to their needs but also actively observing their behaviour in relation to the current products and services and generating ideas on the way which we can improve our innovation that makes effective. There are many models for the innovation process. But FORA is the main one used in the business for the innovation process. It includes the eight stages of what and how to innovate questions. We should always have an interaction session with the consumers to know about their needs and for what they are still lacking far. Innovations that we found are not directly from the consumers and it is to come under the market terms and conditions. Incremental innovations responding directly to consumer needs and preferences occur as a result of explicit short-term consumer preferences fed into the organization through days on the shop floor, bespoke client interaction or customer feedback.

1. Opportunity identification

2. Data collection

3. Pattern recognition

4. Concept idea

5. Conceptualization

6. Prototype

7. Test

8. Implementation.

In this first four comes to the topic under what to innovate and then the last four comes under the topic how to innovate. Opportunity identification is used to identify on what basis we have to identify the opportunity whish is provide for us. We have to keen in collecting the data about the field which we going to innovate the idea. Even though the new ideas fail, we should not penalize. No one can bring his effective idea in his first attempt. So we should implement and take the idea which had a far better result. The result should on the view of both consumer and the producer. They are really getting benefits when the new innovation comes. Most of the great innovations happened only through this principle of foreseeing the future where any individual saw the needs of tomorrow. If it is not in a beneficial manner then the innovative one is said to be a failure one and it should be overcome by other idea in a good way. FORA suggest that the innovation process can contain all eight elements in sequence, with opportunities for feedback into previous elements.

If someone uses the innovative one then we can know about the explicit of the impact on the innovation. It is very tough to process for the organization level. When we stimulate the sales growth in markets in a exploited way, the consumers are get benefited in many ways. When we fail to innovate there is will be a losing market share to the competitors. We would be falling from productivity and efficiency. Some times it may be lead for us to going out of business. So we should be in keen observing our strength and weakness to know the value of innovative one. The preferences and needs of the consumer can influence a product or service innovation at any stage of a product's development. The influence of demand in the process can be through traditional market research or more user-led routes. Interaction with users can vary in intensity from passive involvement by the consumer. When introducing the new idea in the market in the business part of the external side. Then there should be a mediator to convey what are the benefits in that idea to the consumers and the business market , which rewards the innovative activities by the firms. If the innovation is to be maximized then the organization should be more conscious. The consumers should know about the product or service what they using and the benefits. We should plan for innovation then there should be an innovation as part of our business strategy. This is said as strategic vision. We have to study about the present trends in market and we should collect lot of information about the field which we going to plan for innovation. Spending money to advertise to consumers is not the same as spending money to learn about their needs and preferences. Moreover, learning about those preferences is one step removed from involving them in the innovation process. the attribution of a policy to be demand-oriented or supply-oriented is somewhat arbitrary. Creativity and look for imagination is specially need for the innovation of the affordable good or services. From the business point of view we should add value to the products and services.


In this section we present a framework derived from our qualitative research, which sets out the following activities of our case study organizations are when in the innovation process interaction with the consumer was sought. How they looked to understand consumer needs and preferences. Framework includes both ability and willingness to innovate. In the framework we should always have an interaction session with the consumers to know about their needs and for what they are still lacking far. Innovations that we found are not directly from the consumers and it is to come under the market terms and conditions. Our framework provides public policymakers with a way to assess the impact that influencing a user's needs and preferences is likely to have on innovation and what else might need to be done to supplement those policies to achieve the desired effect. Throughout the section, we use examples from the case studies to illustrate the themes that emerged from our analyses. The products were offered following monitoring of current, rather than predicted, demographics. All the organizations were involved in market scanning. The process of filtering the knowledge's based on the consumer preferences and the company wants to be the effective part in making a consumer satisfied. 'light bulb-moments' involved employees in considering long-term trends of consumer needs and preferences. The need was therefore a future consumer need, but responses originated with employees. This mechanism was associated with examples of radical innovation. In this radical innovation the light bulb is the main example for the long term trends. The framework is then to be followed with the blue sky thinking. Days on shop floor is includes about the detail of explicit in short term trends. This is an internal origin of the idea in the data, which is said to be incremental innovation. This is a conscious decision by management to spend time at the front line of the organization where interactions occur with the consumers or users. They may be meeting customers or spending time in the back office or shop processes, but they are working in the environment most directly connected with the consumers. The idea is to encourage those in the position to influence and bring about change to see exactly what it is like working on the front line, and think of ways in which this could easily be improved. Bespoke client interaction is the third one in the framework process. It explicit the short term preferences in both the external and the internal innovation. Here it includes the origin of the idea in either incremental or radical innovation. The next one is customer feedback. Two organizations said that the suggestion box might influence smaller changes, but it rarely happened. The second route was 'testing' a developed idea with the consumer. The latter input of customer feedback was mostly formally structured using traditional market research principles with either old or new methods. For example, one organization used consumer focus groups with five to eight people physically in a room together to discuss the packaging of a new product. In another organization, an online panel was gathered in a virtual environment to trial new packages that could be altered 'live' in session. In one organization, testing with the consumer occurred relatively late on in the development process of the idea. In the other, it occurred at different stages of development, sometimes within hours of idea generation. . It comes under the origin of the idea in the radical innovations. The market scanning involves the innovative idea which we implemented should be scanned in the market. "The consumer insight team feed into the marketing team. We get a lot of ideas in the marketing team on how to advertise and reach or connect with our customers differently."

An important theme consistent to several of the failures and to some successful innovations that might have been more successful or succeeded sooner was a proper understanding of consumers. This is perhaps unsurprising given the need for consumers to buy products and services to make them viable. There are always exceptions to rules or

Patterns. We expect this to be the same with our framework. We have presented a way of organizing our findings from the way innovations happened within our case studies and the details of the specific innovations analyzed. The framework is based on in-depth insights from how consumer preferences really influence innovation in organizations.

Conclusion and recommendation:

Quantitative and qualitative approaches have strengths and weaknesses that make them suitable for answering different research questions. When there is good quality of innovation they are lacking in quantity and vice versa. In this project we are in search of two things. One is the right question from the consumers. The next one is it was not possible to start our research to identify the interview to the people. Innovation should satisfy both the producers and consumers which should be equally balanced in all conditions. The good look for innovation should be rewarded and the success is celebrated. There is a need to educate consumers and government about how to demand innovation and improve the lines for communication. They should know what the consumers need and for what they going for the new innovative one. So we should maintain a flexible relationship with the consumers to make the innovative idea in a profitable manner. It is important to remember that the user is not just the mass consumer, but also includes businesses and government. Raising their competence as demanding consumers and encouraging them to suggest innovations in their bespoke client interactions could stimulate innovation. Organizations may have been aware of general news on policy changes, but this was not seen as part of their innovation processes. However, innovations do not happen in isolation, so any such information is likely to influence people's thinking. Government needs to factor this into how it communicates policy changes that demand innovative new products or services from firms. Thinking by the employers were a result of their considering what might help the consumer. A timely example is the digital television switchover. Providing consumers with information about the switchover includes the timing, what happens, their choices, and what they can do.