Innovation is the most critical component of an organization to survive in the highly competitive global marketplace. The key to innovate is adding value to the experience of the customers with the organization. There are two major tools through which the organization can market the value of its innovation—push marketing and pull marketing. In other words, it is known as the knowledge push and the needs pull. A clear example of knowledge push is the invention of road safety device by observing the reflection in the eyes of cats. On the other hands, when a high-end product that has been developed for a segment of customers diffuses into the market and leads to the development of more technologically competent machines is an example of needs pull (Pantano & Viassone, 2014). Innovation can be of two types: it can occur when the market for such product does not even exists like the App Store was invented when nobody knew any such thing. This was knowledge push on the behalf of the organization. But when the need to innovate arises as the business is maturing its life cycle and it requires innovating to sustain in the marketplace (Jain, 2014).
The process innovation in the retail industry where the use of smartphone has eased the buyer’s experience is a form of both needs pull and knowledge push. The online retailers who started the system applied the knowledge push whereas, the other competitors and retailers that followed the trend make use of needs pull. Need pull is a complementary need to knowledge push; now, the retailers need to use this technology in order to retain their customer base; in case, they do not shift their business model, they shall lose their market share to the competitors and also the chance to achieve competitive advantage. For the business that makes use of process innovation before the need arises, and only due to their research and development, the knowledge is pushing them.
References
Jain, V. (2014). Innovations: Knowledge pushed? or Needs pulled?. [online] 2nd Feb. Retrieved from: http://theindianeconomist.com/innovations-knowledge-pushed-or-need-pulled/ [Accessed: 27 Mar 2014].
Pantano, E. & Viassone, M. (2014). Demand pull and technology push perspective in technology-based innovations for the points of sale: The retailers evaluation. Journal Of Retailing And Consumer Services, 21 (1), pp. 43--47.
