Marketing Strategy: Innovation & Communication Research Paper

The introduction of innovations opens new business opportunities for companies. At the same time, the introduction of innovations needs leadership because it is leaders, who introduce innovative products or services and lead their businesses to the overall success, as was the case of Jeremy Stopplemand or Caleb Chung. In such a situation, the leadership style helps leaders to introduce the change and lead their company toward its successful introduction in the market because to invent a new product or service is not enough to make it bringing profits. To make the product or service successful, one needs to commercialize it successfully. Therefore, leaders and their leadership style plays an important part in the development of their businesses, while innovations help to boost their business development because innovations become the milestone that generate the business development and opens new business opportunities for companies.

Leaders and their businesses

Jeremy Stoppleman, the founder of Yelp, is one of the prominent contemporary leaders, who have managed to take advantage of the fast progress of the contemporary digital technologies and fast development of online businesses to create the company that provides crowd-source reviews about local businesses, offers online reservation services, hosts social events for reviewers, and provides data about businesses. In fact, Jeremy Stoppleman has managed to create the company that meets needs and wants of customers, who live in the digital age and receive the information about different businesses or locations online.

Caleb Chug, the inventor of Furby, was another leader, who has managed to commercialize his successful idea of a new toy. At the same time, Caleb Chung’s case shows that the creation of a new toy is not enough since Furby became the success story only, when Chung and his co-inventor sold Furby to Tiger Electronic. This decision was challenging but effective and lead to the commercial success of the new product. As a result, he has managed to succeed with his invention. Furby had the greatest success for three consecutive years since its first introduction in the market in 1998.

The methods the innovators or leaders are using to communicate through technology in an effort to remain relevant in their industries

Innovators used different leadership methods to communicate through technology to maintain their strong position in their industries. In this regard, Stoppleman focused on the introduction of his innovative product and its further expansion and attraction of the public attention and engagement of customers to share their experience with others. In such a way, he attempted to make his product attractive to customers through sharing the creation of the product with customers. For example, customers, by sharing their review, contributed to the company and they viewed the company as related to them in a way. Such personalization helped Stoppleman and his company to develop closer ties with customers and increase the credibility and attractiveness of the company to customers (Sim & Killough, 2015). Also the company used innovations to stay up-to-date. For example, Yelp introduced mobile application to expand its target market and to make the product even more available to customers since customers tend to use their mobile phones rather than conventional computers or other devices.

Chung focused on the retention of traditional features of his product. Even though Furby evolved in the course of time, the toy remains recognizable throughout its evolution. Furby in 1998 and Furby now are different but they have strong common features which make Furby Furby (Wetherbe, 2016). Such focus on the retention of distinct features of the product allowed Chung to take the full advantage of the initial success of the new product and helps the company to keep selling the toy successfully.

How technology has advanced each of the businesses and led to growth

Stoppleman’s business depends entirely on digital technologies that keep the business growing. Yelp cannot exist without contemporary technologies. This is why the product focuses on customers that use internet, mobile application, and look for information and reviews about local businesses and other data that the company provides (Viardot, 2014). Technologies made Yelp possible because the product is technology-oriented and fully reliant on contemporary technologies. Moreover, the product needs regular updates, as was the case of the introduction of the mobile application, to remain competitive in the market.

In contrast, Chung’s product has never been technology-oriented. Instead, it was oriented on the sensual perception of the product by customers, especially children, which is the target customer group for Furby. Nevertheless, the company that manufactures and sells Furby uses information technologies to reach the target customer group. For example, online sales allowed boosting sales of Furby, when the product seemed to be in decline. The creation of virtual communities dedicated to Furby helped to maintain the popularity of the product among customers.

New products and leadership style

While introducing their products in the market, Stoppleman and Chung used different leadership styles. Stoppleman used the transactional leadership style. He developed the new product, commercialized it, and introduced in the market. He stayed focused on the new product and its marketing and undertook bold steps to introduce and promote the new product successfully. For example, he rejected the offer from Google to purchase Yelp. Instead, he took his business public and that decision accelerated the business development of Yelp. In such a way, actions undertaken by the leader have ultimately led the new product to the great marketing success.

In contrast, Chung focused on the transformational leadership style since, when he attempted to introduce the new product in the market, he confronted substantial difficulties (Schmitt & Simonson, 2012). Nevertheless, he proved to be flexible enough and introduced changed in his initial plans to reach success with his new product. Moreover, Chung changed the product, even when the product has already been introduced in the market to make the toy more attractive to customers, as customer needs and wants evolved in the course of time.

Ways managers and project leaders working under constraints can accomplish hiding inventions from the public

At the same time, both Stoppleman and Chung faced the problem of hiding their inventions from the public before their launch in the market. The marketing success of both products was, to a significant extent, the result of the ability of project leaders to keep each product in secret. Hence, once introduced, products made a stir in the market and attracted many customers. Both leaders kept their products in secret and employed the small project team that worked on each project successfully, while a large part of the project leaders accomplished themselves.

Conclusion

Thus, the case of Stoppleman and Chung reveals the importance of leadership for the effective solution of problems associated with the introduction of new products, but they also reveal the importance of the effective communication with customers and use of new technologies to reach the target customer group.

References:

Schmitt, B. and Simonson, A. (2012). In Marketing Aesthetics: The strategic management of brands, identity, and image, New York: The Free Press.

Sim, KL and Killough, LN (2015) The performance effects of complementarities between manufacturing practices and management accounting systems, Journal of Management Accounting Research 10, pp.325-346.

Viardot, E. (2014). Successful Marketing Strategy for High-Tech Firms. New York: New Publishers.

Wetherbe, J.C. (2016).  The World on Time: The Eleven Principles that made FedEx an Overnight Sensation. Santa Monica:  Knowledge Exchange.

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[Accessed: September 29, 2020]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: September 29, 2020]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: September 29, 2020]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: September 29, 2020]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: September 29, 2020]