Market Innovations include both incremental innovations in the marketing process (we’ll address incremental innovation below) and ‘new market innovation’.
New Market innovation
New Market Innovation is a type of disruptive innovation (again, see below) which either taps into a completely new market for a good or service, or so completely disrupts the extant market/value network as to effectively establish a new market structure.
As there are very few truly ‘untapped’ markets in today’s world, most ‘new market’ innovation centres on turning non-consumers of a particular good or service into consumers – creating either a need or the awareness of a need where there was none before.
Incremental Innovation – the majority of the innovation one sees today is ‘incremental’. Existing technologies and processes are used with existing markets, but one or more aspects of the system are changed in a way that hopefully, is more profitable. This might involve adding new features to an existing product, or even removing them. It might involve a change to the UX of your website or changing some aspect of your marketing efforts.
The key feature in incremental innovation is that the basic relationship structure remains unchanged. You are offering ‘the same thing, only better’.