Investing in innovation is no more a luxury. It is more of a necessity in this world of intense competition. However, the decision regarding the type of innovation to be pursued should be made in accordance with the nature of the organization, its resources, competitive profile and market situation. Contrary to the general belief, innovation need not necessarily be complicated and expensive. This article discusses the relevance of innovation for marketing success, and the role of innovation in delivering the desired customer value.

In this era of increasing competition and shrinking profit margins, management literature hints at developing new competencies, new products and new markets to ensure continued growth and survival. Thus, exploring and capturing new markets through organic or inorganic growth has become almost a prerequisite for survival today. Darwin's theory of `Survival of the Fittest' holds true, not only in the evolution of life, but also in the context of businesses. Organizations, which can differentiate themselves by adapting to the new environment, would be better equipped to fight their way through this immensely competitive market. The contemporary markets - which essentially consist of informed customers - can be captured only when a company's offerings stand out as distinctly as the first monsoon shower amidst the heat and dust of marketing clutter and the scorching monotony of me-too products.

An invigorating change in the way the needs are met or the problems are solved, initiated by a new product or service design, invariably receives unflinching attention and bestows tremendous competitive advantage on the firm that delivers such enhanced value.

Years ago, when Ford introduced a motor drawn carriage into the market, to replace the horsedrawn carriage that was the order of the day, it showed a new and superior way of solving the age-old problem of commutation. The company provided a superior value beyond the imagination of the consumer of that era by offering transportation with better speed, style and convenience. The company, along with its product, the motor car, revolutionized the concept of personal transportation. The motor car from Ford Motor Company, thus, stood out to differentiate itself from other modes of transport by virtue of its ability to offer the basic value proposition (personal transportation) along with enhanced value proposition (represented by speed, style and convenience). Thus, a customer-oriented innovation made the company a market driver in the true sense and a market leader in its own right.

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