The innovation life cycle includes the following stages. Life cycle of innovation

Every innovation has a certain period of life. The innovation process is cyclical in nature, has stages of origin, accelerated growth, stable growth, and death. Over time, a new product or service loses its attractive properties, its production becomes unprofitable and the manufacturer is forced to improve the properties of the product or replace it with a new, more effective one. Therefore, even during the production of product “A”, the manufacturer is interested in having a scientific and technical basis that will ensure the appearance of product (service) “B” during implementation with a greater effect per unit of useful power and lower cost than product “A”.

The full life cycle of an innovation (from the first scientific research to discontinuation of production) covers three private cycles: scientific, inventive, production, making up the whole scientific and production cycle. There is a certain time lag between these cycles: between the emergence of an idea and obtaining a patent for an invention, between the acquisition of a production license and the start of production, etc. Reducing the lags between individual stages of the innovation process and different cycles significantly reduces the cost of producing an innovation. Therefore, the innovation policy of the manufacturer of new equipment and technology should be aimed at tracking trends in the development of world and domestic science and technology, at implementing a system of measures to reduce the time spent on implementing innovation production projects.

Life cycle of innovation represents a certain period of time during which the innovation has active vitality and brings the manufacturer and(or )to the seller profit or other real benefit.

The concept of the innovation life cycle is important when planning the production of innovations and when organizing the innovation process. This meaning appears as follows:

• 1. The concept of the life cycle of innovation forces the head of an economic entity and its marketing service to analyze economic activities both from the perspective of the present time and from the point of view of its development prospects, i.e. from the perspective of the future tense.
• 2. The concept of the innovation life cycle justifies the need for systematic work on planning the release of innovations (search for ideas, organization of the innovation process, creation of innovation, its promotion on the market and diffusion), as well as on acquiring innovations (demand research, marketing, benchmarking).
• 3. The concept of the innovation life cycle is the basis of the mechanism for analyzing and planning innovation. When analyzing an innovation, it is possible to establish at what stage of the life cycle this innovation is, what its immediate prospects are, when a sharp decline will begin and when it will end its existence.

Innovation life cycles differ by type of innovation. These differences primarily affect the overall duration of the cycle, the duration of each stage within the cycle, the developmental features of the cycle itself, and the different number of stages. The types and number of life cycle stages are determined by the characteristics of a particular innovation. However, each innovation can have a basic life cycle with clearly defined stages. It should be noted that the product life cycle and operation diagrams are different.

The general diagram of the life cycle of a new product is shown in Fig. 1.1. The life cycle of a new product consists of seven stages.

1. Development of a new product. The most important stage is the first stage - the development stage of a new product. The beginning always determines the entire future fate of an innovation. The likelihood of further success in the sale of a new product, its profitability, and the amount of monetary proceeds from its sale are already laid down at this stage, i.e. long before the product reaches the market.

At this stage, the producer of a new product organizes the innovation process, i.e. carries out work on initiation, idea search, feasibility study and creation of a new product.

The producer finances all costs of creating a new product. Strictly speaking, at this stage there is an investment of capital, the return of which, together with income, will occur in subsequent stages.

• 2. Market entry stage shows the period of introduction of a new product into the economic activity of buyers. This stage may cover the period of product introduction under the influence of advertising in any particular region or enterprise. The product begins to bring money to the producer or seller some time after it appears on the market. The duration of this stage depends on the intensity of advertising, the level of inflation, and the availability and efficiency of retail outlets (points of sale of new products). It is at this stage that the producer or seller has the chance to gain the greatest benefits due to the high competitiveness of his product, which is associated, first of all, with the absence of competitors, with advertising and other organizational and trading operations.
• 3. Market development stage is associated with an increase in the sales volume of a product in the market. Its duration shows the time during which a new product is actively sold and the market reaches a certain limit of saturation with this product.

The two stages mentioned, i.e. the market entry stage and the market development stage are associated with the promotion and diffusion of the product. Therefore, at these stages, all operations to promote the product and its diffusion must be actively and comprehensively carried out.

• 4. Market stabilization stage means that the market is already saturated with this product. Its sales volume has reached a certain limit and there will be no further growth in sales volume. Throughout this stage, the sales volume of the product is relatively stable. Economic laws (laws of supply and demand) are active here. The producer or seller does not make any capital expenditures to maintain stable sales. At this stage, the influence of the inertia of previously made advertising events, as well as psychological laws (I will buy because everyone is buying; I will buy because it is profitable, etc.) is great.
• 5. Market shrinking stage– This is the stage at which a decline in product sales occurs. Its sales volume begins to decrease. However, at this stage there is still a demand for this product and, therefore, there are all objective prerequisites for increasing the sales volume of the product.

Rice. 1.1. :

• 0-A – investment of capital; О–Б – additional financing of costs; 1 – market entry point; 2 – point of market saturation with the product; 3 – the point at which the product begins to decline and sales decrease; 4 – transition point to increasing sales; 5 – point of transition to a constant contraction of the market; 6 – point of complete sale of the product or complete cessation of sales
• 6. Market recovery stage is a logical continuation of the previous stage. Since there is a demand for a product, then this demand must be exchanged for supply for the product. Therefore, the producer or seller begins to study the conditions of demand, change its personnel and pricing policies, apply various forms and methods of organizing trade (for example, introduces free consultation of the buyer at his place of work/residence, subject to the purchase of the product, etc.), various forms of material sales promotion product of both the seller (prizes) and the buyer (prizes, winnings, discounts, etc.), conduct additional promotional events, as well as advertising hype, publicity stunts, etc.

All this allows the manufacturer or seller to increase sales volume and the life cycle of the product for a certain period of time. However, the decline in the sales volume of the product is already firmly captured by a clearly widespread trend towards a decrease in demand for this product.

Therefore, the sales volume of the product can no longer increase to the previously reached saturation limit of the financial market. Practice shows that, depending on the specific type of product and the specific situation on the market, the increase in its sales volume after additional measures does not exceed 90–95% of the previously achieved sales volume.

The market rise stage lasts for a fairly short time. This stage is associated with an already clearly outlined trend towards a decrease in demand for this product. The stage of market rise moves into the last stage - the stage of market decline.

7. Market decline stage– this is a sharp decrease in the sales volume of a product, i.e. dropping it to zero. At this stage, the product is completely sold or the sale of the product is completely stopped due to its uselessness to customers.

When considering the life cycle of a new operation, there are two things to consider.

• 1. The operation is implemented in the form of a complete document describing the entire procedure for performing this operation. This point reflects the operation algorithm.
• 2. Operations are carried out in two directions:
  • within the business entity that developed this operation;
  • on the market by selling the operation to other business entities.

The purpose of implementing an operation within a business entity is to obtain economic benefits in the form of reducing the time required to carry out work, freeing workers from eliminating unnecessary work, saving money, etc.

The purpose of selling an operation on the market to other business entities is to receive funds in the form of revenue and improve its image. In this case, the producer often plays the role of a consultant, and also fulfills client orders for the development of a particular operation.

The operations are not patented, but represent know-how. Therefore, the producer of an operation may lose its monopoly on the operation by not selling it on the market. In addition, employees of other business entities can themselves develop this operation, relying on some elements of the operation taken or stolen (industrial espionage) from other business entities.

The life cycle of a new operation includes four stages (Fig. 1.2).

Rice. 1.2.

О–А – financing the process of developing an operation and creating a document; 1-B – implementation of an operation within a business entity; 1–2 – implementation of an operation on the market; 2 – point of transition to market saturation; 3 – point

transition to a reduction in market volume and its fall; 4 – point of termination of the sale of the operation on the market.

• 1. Procedure development stage operation and its execution in the form of a document is associated with the organization of the innovation process. Here work is carried out on initiation, on searching for an idea, on developing the entire algorithm for a financial transaction, on creating a document (instructions, guidelines, etc.). At the same stage, the producer finances all costs of developing the operation.
• 2. Operation implementation stage is associated with its implementation within an economic entity or with its sale on the market. At this stage, the mechanism of promotion and diffusion of innovation is active.
• 3. Stabilization stage shows the saturation of the market with this operation and enters the stage market decline, when the volume of sales operations begins to decrease sharply until sales cease completely.

Innovation activity – a process aimed at implementing the results of completed scientific research and development or other scientific and technical achievements into a new or improved product sold on the market in a new or improved technological process used in practical activities, as well as related additional scientific research and development.

The draft Federal Law of December 23, 1999 “On Innovation Activity and State Innovation Policy” proposes the following wording: “Innovation activity is the performance of work and (or) provision of services for the creation, development in production and (or) practical application of new or improved products , new or improved technological process."

It is proposed to include the following types of activities as innovative activities:

• carrying out research, development or technological work to create new or improved products, a new or improved technological process, intended for practical use;
• technological re-equipment and preparation of production for the release of new or improved products, the introduction of a new or improved technological process;
• testing new or improved products, new or improved technological processes;
• release of new or improved products, application of a new or improved technological process until cost recovery is achieved;
• activities to promote new products to markets;
• creation and development of innovation infrastructure;
• training, retraining or advanced training of personnel to carry out innovative activities;
• transfer or acquisition of rights to industrial property or confidential scientific and technical information;
• examination, consulting, information, legal and other services for the creation and (or) practical application of new or improved products, new or improved technological processes;
• organization of financing of innovative activities.

Subjects of innovation activity

The subjects of innovation activity are:

• individuals and legal entities engaged in innovative activities;
• innovative enterprises of various forms of ownership that carry out innovations;
• owners of intellectual property realized in the process of innovation: authors of discoveries, inventions, industrial designs, projects of enterprises, installations, technological processes, know-how, designers;
• investors investing in innovation: banks, funds, corporations, leasing companies, etc.;
• intermediaries serving the innovation process and providing its infrastructure: consulting and engineering firms, technology incubators, technology parks, technopolises, information centers, etc.;
• state bodies and local governments involved in management, coordination, and regulation of innovation activities.

Products of innovation activity

The products (results) of innovation activity, in connection with which economic and legal relations arise between its subjects, are:

• innovative projects that determine the technology and the results of mastering specific innovations (an intermediate result reflected in the business plan);
• technological processes mastered in production that provide socio-economic and environmental effects in the sale of final products;
• fundamentally new, new improved products (goods and services) that are the result of scientific and technical achievements.

• Goncharenko L. P., Arutyunov Yu. A. Decree. Op. pp. 15–16.
• Goncharenko L. P„ Arutyunov 10. A. Decree. Op. P. 20.
• Innovation management / ed. S. D. Ilyenkova. P. 22.
• Right there. P. 23.

Module 1. Innovation. State innovation policy

The essence and concept of innovation and innovative activity as a factor in effective economic development

1.1 Subject, goals and objectives of the course “Economics and Innovation Management”

1.2 The essence and concept of innovation and innovative activity as a factor in the effective development of organizations

1.3 Innovation life cycle

1.4 Classification of innovations

Subject, goals and objectives of the course “Economics and Innovation Management”

Purpose The course being studied is to master the basics of managing innovation processes as a modern approach to managing scientific and technological progress in the areas of industrial, economic and administrative activities.

Innovation Management is a purposeful system for managing innovation activities and relationships that arise in the process of innovation in an organization, with the goal of achieving maximum efficiency of innovation as the most important factor in socio-economic development.

The purpose of innovation management is to determine the main directions of scientific, technical and production activities of the organization in the areas of development and implementation of new products and technologies, modernization and improvement of manufactured products, further development of production and management.

Main tasks economics and innovation management courses are:

1. Formation of a clear idea of ​​scientific and technological progress and its main directions.

2. Formation of knowledge about the features of innovative and scientific activity, its economic mechanism and management.

3. Obtaining practical skills in using acquired knowledge in the field of management of innovative and scientific activities.

The essence and concept of innovation and innovative activity as a factor in the effective development of organizations

For the first time, the definition of “innovation” (from the Latin word innovation - renewal, improvement) appeared in the scientific research of cultural scientists in the 19th century. and then meant the introduction of some elements of one system into another.

They started talking about innovation in relation to economics more than a hundred years ago: in 1911, the Austrian economist J. Schumpeter in his work “The Theory of Economic Development”

Innovation– created and practically used (brought to the consumer) new or improved types of products, technologies or services, as well as organizational decisions of an administrative, production, commercial or other nature, providing an economic effect (social, environmental or other effect).

The main features inherent in innovation:

· must have a market structure to meet consumer needs.

· any innovation is always considered as a complex process, involving changes of both a scientific and technical, and economic, social and structural nature.

· in innovation the emphasis is on the rapid implementation of innovations into practical use.

· innovations must provide economic, social, technical or environmental benefits.

Innovation process is the process of transforming scientific knowledge into innovation, which can be represented as a sequential chain of events during which innovation matures from an idea to a specific product, technology or service and spreads through practical use.

Modern innovative activity is based on the following methodological principles:

Priority of innovation over traditional production

Cost-effectiveness of innovative production (achieving commercial success)

Flexibility (an independent innovative structure is created for a new idea, which may be completely unsuitable for solving other problems)

Complexity (a cardinal innovation usually causes the emergence of a whole set of accompanying smaller innovations).

Subjects of innovation activity are innovative organizations, i.e. those organizations that are directly involved in innovation activities or contribute to this activity. In the case of creating innovative products, the main subjects of innovative activity are production organizations - firms producing these products.

Life cycle of innovation

Life cycle of innovation is a set of interrelated processes and stages of innovation creation. The life cycle of an innovation is defined as the period of time from the origin of an idea to the discontinuation of an innovative product based on it.

Innovation in its life cycle goes through a number of stages, including:

Origin, accompanied by the completion of the required amount of research and development work, the development and creation of a pilot batch of innovation;

Growth (industrial development with simultaneous entry of the product into the market);

Maturity (stage of serial or mass production and increasing sales volume);

Market saturation (maximum production volume and maximum sales volume);

Decline (curtailment of production and withdrawal of the product from the market).

From the standpoint of innovation activity, it is advisable to distinguish both the life cycles of production and the life cycles of circulation of an innovation.

The first stage – the introduction of an innovation – is the most labor-intensive and complex. It is here that the volume of expenses for mastering production and releasing a pilot batch of a new product is high.

The second stage - the stage of industrial development of production - is characterized by a slow and extended increase in production output.

The third stage - the stage of recovery - is characterized by a rapid increase in production, a significant increase in the utilization of production capacity, and the streamlined technological process and organization of production.

The fourth stage - the stage of maturity and stabilization - is characterized by a stable pace of the highest volumes of product output and the maximum possible utilization of production capacity.

The fifth stage - the stage of withering or decline - is associated with a drop in capacity utilization, curtailment of production of a given product and a sharp decrease in inventories down to zero.

The life-cycle concept of innovation plays a very important role in determining both the maximum output, sales and profits, and the life cycle of a particular innovation.

The life cycle of an innovation consists of an R&D phase, a technological development phase, a stabilization phase of production volumes, and a phase of declining sales volumes.

In the initial phase, fundamental theoretical research, applied research and design development are carried out. The result of their implementation is new knowledge and scientific ideas. It is they who form the knowledge potential for innovation, which is an intellectual product whose market value is very difficult to estimate. At this stage, the first sample of a new technology or other innovation is often produced, which is a form of expression of the received information, its illustration.

The main goals of the technological development phase of production are its preparation for the implementation of development results and the provision of the necessary conditions for this.

The next phase involves stable production of specific types of products.

The final phase of the innovation life cycle includes a decrease in sales volumes and further ensuring demand for products through the use of new technological solutions.

Thus, the innovation process, being part of the innovation life cycle, includes various stages - from research and development of new technology to bringing it to industrial implementation.

The final stage of the innovation process, associated with the development of large-scale production of new products, requires reconstruction of production facilities, improvement of technology, personnel training, advertising activities, etc., which requires attracting investments. However, investments continue to be risky, since the market reaction at this stage is still unknown. Therefore, the marketing stage is very important, which creates demand for new products and provides feedback to consumers of the manufactured product.

The higher the level of innovative potential of an enterprise, the more successfully it avoids possible crisis situations. The innovative potential of an enterprise is determined by both technical and managerial factors, which include:

• - the previously established level of production development;
• - condition of the mechanism and control system;
• - type and orientation of organizational structure;
• - trends in economic and innovation policy;
• - understanding the need for various kinds of changes and the readiness of staff for them, etc.

Particularly difficult for an entrepreneur is the stage of marketing new products, i.e., transferring them from the “donor” (supplier) to the “recipient” (consumer). Entrepreneur-

The manufacturer usually proceeds from two strategies for “invasion” of an innovation into the market: “programmed introduction,” which suggests that the consumer adapts to a new product, and “adapted introduction,” associated with changing the product in accordance with consumer requirements.

Transferring an innovation to the consumer often involves teaching him how to use the product. Therefore, manufacturers often bear not only the training itself, but also the associated costs. At the same time, entrepreneurs organize training for their own traveling sales agents, developing their ability to convince consumers, and various situational techniques of a psychodramatic nature are worked out in advance. The profitability of innovations depends on the degree of distribution of innovations (diffusion). Therefore, an entrepreneur must take into account not only economic and production conditions, but also the cultural and psychological differences of consumers from different countries and regions, as well as their age and gender characteristics. The commercial success of one innovation becomes the basis for subsequent innovations, while “fear of innovation” is a consequence of previous unsuccessful innovations, leading to a “psychological barrier” associated with the fear of loss of status, bankruptcy, etc. It is often caused by the insufficient qualifications of the entrepreneur, the inability to attract to the innovative activities of employees of various job groups, to effectively use the specifics of the human factor of production.

There are two main types of innovation strategy:

• - adaptive, when an enterprise uses innovation as a response to changing market conditions in order to maintain its position in the market, i.e. for the purpose of survival;
• - competitive, when innovation is used as a starting point for achieving success, a means of gaining competitive advantages.

The decision to implement an innovative project is preceded by a careful comparison of the expected costs of its implementation (taking into account the assessment of technical and commercial risks) and the financial capabilities of the company, which is reflected in the business plan. The financial position of the company determines the possibility and efficiency of using borrowed funds for innovation.

In modern conditions, an effective form of implementation of innovation activity is the management of capital invested in innovation, taking into account the peculiarities of the innovation process.

Features of the innovation process create conditions for the mutual influence of innovation and investment cycles in the process of creating innovations, reducing their duration and the possibility of their interaction in order to minimize the volume of investment resources and optimal use of advanced funds and achieve a commercial effect from the sale of an innovative product.

Innovation activity traditionally involves a sequence of investments, rather than parallel investments in all or several stages of the innovation life cycle.

At the same time, the loss of the commercial effect of innovation is due to the fact that interruptions in financing are sometimes long-term, both customers and the specialization of future production change.

The theory of combining innovation and investment cycles is based on the following proposition: innovation is

result of activity. At each relatively independent stage of the innovation cycle, a certain result may arise that can become an independent product. However, the result of a specific stage of the innovation cycle acts in relation to the final innovative product only as its intermediate form, i.e., an intermediate product.

Therefore, the investment policy for the development of an innovation can be focused on the final product and on the effective reproduction of the innovation in any of the relatively

independent stages of the innovation process. Myself

the innovation cycle can be stopped if the investor sees the feasibility of turning an intermediate result into a commodity (research methodology, technology know-how, etc.).

The above considerations allow the following formalization. If the cash flow at stage t is denoted as S(m), then in comparable prices to the base point in time, it will be equal to:

S(t m , ti)=S(m) KjXK 2 x to 3

and an integral assessment for the entire innovation cycle

XS(t m , t,)= X S(m) k,x k 2 x k 3

where is K! - coefficient taking into account the amount of inflation at time t in corresponding to the end of stage w; k 2 - coefficient taking into account the influence of risk at stage III; k 3 - coefficient taking into account the distribution of cash flows at stage w.

These coefficients are a function not only of the stage number, but also of the period during which inflation, risk and depreciation of money “accumulate”. Comparison of cash flow values ​​at different stages and at the end of the innovation cycle allows the manufacturer of an innovative product to decide whether it is advisable to carry out all stages or limit itself to work at specific stages.

An effective enterprise management strategy is to increase the competitiveness of products, in particular, to “introduce” product innovations onto the market. In this regard, within the framework of marketing research, the task arises of comparing the assessment of an innovation product with prototype products in terms of price, functionality and meeting the relevant needs of potential buyers.

Financial support is the activity of attracting, distributing and using capital, as well as managing it in the risk capital market. As an integral part of the innovation sphere, innovation capital mediates every stage of innovation activity. The most significant parts of the total national capital serving innovation activities are state capital, loan capital, investments in securities, venture capital, foreign capital, as well as the own capital of business entities.

The scale of investment in the innovation sector varies in different phases of the cycle. The development of basic investments, which requires large investments that pay off in the long term, occurs during periods of recovery and recovery. Since the propensity to save and innovate during a crisis weakens, the state directly (through budgetary investments) and indirectly (through the provision of economic benefits) supports innovative activity, helping to revive the economy and enhance its competitiveness. The scale of government support in the phases of recovery and stable development is reduced, and the innovation process itself is carried out on a competitive basis. During this period, improving innovations predominate, requiring less investment and not associated with such significant risks as in the case of basic innovations. This also makes it possible to reduce the scale of government support for innovation. The level of innovation and investment activity is minimal in the crisis phase, when pseudo-innovations that do not require significant improvements are developed.

Innovation life cycle is a set of interconnected processes of creation and consistent changes in the state of products from the concept and initial requirements for new products to the end of their operation.

The product life cycle can be:

complete – covers all types of work and their duration;

incomplete – differs from complete in time and volume parameters;

private - characterized by indicators of a separate stage of the life cycle, for example, development, manufacturing, operation.

Innovation life cycles differ by type of innovation. These differences affect, first of all, the total duration of the cycle, the duration of each stage within the cycle, the peculiarities of the development of the cycle itself, and the different number of stages. The types and number of life cycle stages are determined by the characteristics of a particular innovation. However, for each innovation it is possible to determine the “core”, that is, the basic basis, of the life cycle with clearly defined stages.

The life cycle of innovation consists of a number of stages at which an idea is transformed into a new product, new technology that can satisfy customer requirements.

The initial stage of the life cycle is scientific research work (R&D), which is carried out according to a single technical specification (TOR). Technical task– this is a mandatory document for starting research work. It defines the purpose, content, order of work and the method of implementing the results of research work.

The research process consists of the following stages:

1. Development of technical specifications;

2. Selection of areas of research;

3. Theoretical and experimental research;

4. Generalization and evaluation of results.

Scientific research– these are fundamental, exploratory and applied theoretical research; experimental research and verification. TO search engines relate research, whose task is to discover new principles for creating products and technologies. In the course of such studies, theoretical assumptions and ideas are confirmed. Applied Research are aimed at studying ways of practical application of previously discovered phenomena and processes.

Experienced work– a type of development associated with experimental verification of the results of scientific research. Experimental work is aimed at manufacturing and processing prototypes and new (improved) technological processes. Experimental work is aimed at the manufacture, repair and maintenance of special equipment, apparatus, instruments, installations, etc., necessary for scientific research and development.

The results of such research are the discovery of particular and general laws or patterns, the emergence of new material objects or substances.

The second stage of the life cycle is development work (R&D). At this stage, technical documentation is developed:

Technical Proposal;

preliminary design;

technical project;

working design documentation.

The result of development work is a prototype of a new technical object, or a new technical process. The development of a new product is completed after the defects have been eliminated based on the comments of the acceptance committee and the acceptance certificate for the prototype or batch has been approved.

Pre-production is the next stage of the innovation life cycle, which consists of putting products into production and includes measures to organize the production of a new product or its development by other enterprises.

The installation series or the first industrial series of products is manufactured to test the ability of this production to ensure industrial production of products in accordance with the requirements of scientific and technical documentation and consumers.

Research and development work, as well as production preparation, belong to the pre-production stages of the innovation life cycle. Here the product, its quality is formed, the technical level of the product, its progressiveness is laid down.

The next stage of the life cycle is the production of the created product in accordance with the generated order portfolio.

The final stage of the life cycle consists of operation (for consumer durables) or consumption (for raw materials, fuel, etc.) by the customer or consumer.

The product life cycle is characterized by time and economic parameters.

Economic parameters characterized by volume, cost and quality indicators, which are closely interrelated. Volumetric parameters include the duration of production and operation of the product. The quality parameters of products, works and services, as well as the volume of their production, form the economic costs of the new product.

Life cycle duration products in each specific period of scientific and technological development is determined by the physical and moral aging period of the equipment.

The life cycle of product innovation and process innovation is distinguished.

In relation to an innovation - process, the content of the life cycle is somewhat different and includes:

emergence - awareness of the need and possibility of change, search and development of innovation;

development - implementation on site, experiment, implementation of derivative changes;

diffusion - dissemination of innovation, replication, repeated repetition on other objects;

routinization - innovations implemented in stable, constantly functioning elements of the corresponding objects.

Both types of life cycles are different in time range and in essence. For example, routinization of an innovation - process may occur, but the new product has not yet become obsolete, or, conversely, a new product may become obsolete, and the innovation has not yet begun. As a result, many scientific products do not find application.

The above life cycles are united by a common concept - “innovation process”. Their main difference is that in one case there is a process of formation of new products, and in the other - a process of its implementation.

Under innovation process one should understand a sequential chain of work during which innovation matures from an idea to a specific product, technology or service and spreads into practice.

The innovation process can be represented as a system of activities for the development, implementation, development, commercialization and diffusion of innovations.

Innovation processes as an object of management are characterized by uncertainty, variability and are probabilistic in nature.

The actions of an enterprise at the stages of the life cycle of an innovative product largely depend on the type of innovation. Here is a classification of innovations by object , location and degree of novelty.

Depending depending on the type of object innovations are divided into:

· subject innovations are new material resources, raw materials, semi-finished products, components, products. Innovation in the form of a new product is decisive and is called product innovation . Such innovation aims to satisfy new needs or existing needs, but in a different way;

· process innovations are new services, production processes, methods of organizing production, organizational structures, management systems. In this class of innovations, innovation in the field of production processes is decisive; it is also called technological innovation. This innovation is aimed at improving product quality, increasing labor productivity and increasing production volumes.

From the point of view of innovation marketing, classification based on the principle of market novelty is of particular importance. Depending depending on the degree of novelty highlight innovations:

radical (basic) - for example, a new product based on a pioneer invention;

· improving – for example, a new product based on an invention that improves on a pioneer invention;

· modification (private) – for example, a new product based on an improvement proposal.

Radical innovations, especially those involving a new resource, are the most effective. The frequency of such innovations is one or two in a period of 40–50 years in a given field of science and technology. An example of radical innovation is the internal combustion engine , replacing the steam engine or cell phone replacing the landline . Increase K . P . D . internal combustion engine or creating another modification of a cell phone (additional set of functions, display color, design, etc.) – improving innovation . One of the most important types of product innovation is new technology, that is, means of production and objects of labor in which new human knowledge and skills are materialized. In turn, the use of new technology in production leads to process innovations within the enterprise - new technologies . In recent decades, due to the development of information technology, information innovation has become increasingly important. It is considered as a new type of resource.

Information innovation has two important properties:

• it is primary in relation to other innovations, since information is the basis of everything;

· it is inexhaustible, while other resources are limited.

Every innovation is distinguished by the level (degree) of novelty, which is the most important element in competition in the market. There are factors that determine the level of novelty:

Originality of the idea, patent;

The amount of allocations for the innovation process - the higher the allocations, the larger the process.

The coefficient of renewal of fixed assets - the higher the coefficient, the larger the innovation.

Marketing expenses.

Profit rate - at different stages of the product the profit rate is different. But here you still need to take into account a lot of profit.

The volume of output (sales). The new product has weak sales.

Figure 2 shows the period (T) until which the product can be considered new, based on costs

Fig.2. Costs of an innovative product depending on time

The duration of product novelty determines the duration of the product’s life cycle until the design capacity of the new product is sufficient (after some time, the new product becomes serial)

According to the degree of novelty, they distinguish: absolute novelty, relative novelty (relative to some feature: memory, performance, etc.), private - individual elements are new products, conditional - an extraordinary combination of previously known elements, market novelty - new for the consumer.

The concept of novelty can be viewed from the consumer's point of view and from the producer's point of view. A product may be new to the manufacturer, but not to the consumer.

Market novelty is characterized by the following properties:

· expanding the circle of potential consumers

· increase in the number of functions performed

· change in consumer needs.

You can also distinguish reactive (adaptive) and strategic innovations. Their differences are shown in Figures 3 and 4.

Rice. 3.Reactive (adaptive) innovationRice. 4Strategic Innovation

But not every innovation will be successful in the market. Company losses associated with the failure of new products often reach enormous proportions. For example, Ford's losses when trying to launch the Edsel model amounted to about $300 million. Xerox's innovation to enter the computer market ended in losses of $200 million. The failure of the major Iridium project of Motorola Corporation (Motorola) is estimated at 2 billion dollars. There are many such examples. However, firms continue to invest heavily in R&D and bringing new products and services to market. In 2000, total R&D costs were £345 million for British Telecom, $4,575 million for IBM, $3,800 million for Microsoft, and $3,800 million for Lucent Technologies. (“Lucent Technologies”) – $4,496 million. The Mannesmann company (“Mannesmann”) has registered 763 inventions and 157 trademarks. Nokia has 52 research centers, employs 17 thousand people in R&D, and annual R&D expenses account for 10% of total sales.

Such costs can be explained by the unique competitive advantage that companies receive as a result of the success of innovation - this is the advantage of novelty. Almost every second advertised product on the market is positioned as new. Why is this beneficial to manufacturers and attractive to consumers?

· Firstly, when entering the market with a new or improved product, the company receives temporary monopolist status, which allows it to accumulate excess profits and dictate its terms. A timely filled market window becomes a niche where supply and demand are completely balanced, and the consumer develops a commitment to the new brand. A competent marketing policy and protected know-how ensure the long-term profitability of the innovation.

· Secondly, the successful implementation of innovative projects gives the company an image of flexibility and innovation, which is an important component of the competitiveness of modern companies. Thus, new products stimulate demand for the firm's products as a whole, often prolonging the life cycle of products at the stage of maturity or even decline.

Life cycle is a time interval that includes several stages, each of which is distinguished by the special nature of the process of changes over time in demand (C), production volumes (P) and technology (T) (see Fig. 5 - a, b, c).

Rice. 5. Life cycles of demand (C), products (P) and technology (T):

a - stable technology; b - fruitful technology; c - changing technology

Depending on the type and type of innovation, as well as the final result, cycle models may differ in the number and composition of stages, stages and duration of the innovation process. In the innovative activities of organizations, there are several main innovative processes:

• development and production of new products or improvement of previously produced ones;
• development and use of new technologies to organize or optimize the production process;
• introduction of new forms of organization and management.

There are three concepts product life cycle: full life cycle (the time from the beginning of product development until the end of use of this product by the consumer), the life cycle in the production sector (the time from the start of the product entering the market until the moment it is discontinued), the life cycle of products in the consumer sector (release time and operation by the consumer). A change in the stages of the product life cycle is associated with a change in profit: before the start of the sales growth stage, the specific profit is negative, until the end of the growth stage it grows, and then rapidly drops to zero, after which the product is discontinued.

Technology– a more time-varying category than demand; Several technologies may change over the demand life cycle.

Depending on the level of technology variability, i.e. the frequency of replacement of one technology by another during the life cycle of demand, they are divided into three main types:

• stable technology remains unchanged over the demand life cycle; competition occurs at the level of prices and quality;
• fruitful technology remains unchanged for a long time, but at the same time new generations of products are being developed with better performance and a wider range of applications; the short life cycle of products does not always allow you to return the money spent; the newest product with the best performance captures the market, very intense competition forces prices to be reduced “at a loss”;
• changing technology characterized by the fact that during the demand life cycle, in addition to new products, successive new technologies appear; Changing technologies threaten obsolescence of all previous investments in R&D, production assets and personnel and often force previously leading firms to leave this business.

Nowadays, any industry with a stable technology can instantly transform into an industry with a changing technology due to the invasion of related technologies.

The main stages of the innovation life cycle, changes in profit and sales volumes by stage are presented in Figure 6.

Rice. 6. Main stages and characteristics of the innovation process

The innovation process in general means the sequence of transition from the idea of ​​a possible innovation to the creation, sale and diffusion of this innovation. The innovation process is divided into two main stages:

• creation of innovation - scientific and scientific-technical activities, including three components - fundamental research work (R&D), applied R&D and development work;
• commercialization of innovation - process involving production, marketing and sale of a product in the market

Fundamental research works. The emergence of an innovative idea and the possibility of using new scientific results occur at the stage of fundamental and exploratory research and applied research and development. The process of creating and mastering new technology begins with fundamental research work(FNIR), aimed at obtaining new scientific knowledge and identifying the most significant patterns. The goals are to discover new connections between phenomena, to understand the patterns of development of nature and society and the possibilities of their specific use.

Fundamental scientific research is divided into theoretical and exploratory. results theoretical research, carried out in academic institutions, manifest themselves in scientific discoveries, substantiation of new concepts and ideas, and the creation of new theories. TO search engines include research whose task is to discover new principles for creating ideas and technologies. Search FNIRs are carried out both in academic institutes and universities, and in large scientific and technical industrial organizations by highly qualified scientific personnel. The priority importance of fundamental science in the development of innovative processes is determined by the fact that it acts as a generator of ideas and opens paths to new areas of knowledge. The search work ends with justification and experimental testing of new methods of meeting social needs. FNIR is financed from state and industry budgets. Upon completion, documented and legally scientific results are achieved.

Applied research work. the main objective applied research work(PNIR) – determination of quantitative characteristics of new methods, approaches, non-standard existing design and technological solutions. They are most often conducted to explore the capabilities of products or technologies in specific conditions. For example, studying the capabilities of semiconductors at ultra-low temperatures or the behavior of an aircraft when breaking the sound barrier.

The executors of the research and development work are academic institutions, industry innovation departments (design institutes, laboratories, research sectors of universities, government and commercial scientific and technical centers – STC). Depending on the complexity of the innovation project (development and development of a new type of product), the tasks solved at the preliminary stage of innovation activity can be quite diverse. In particular, when developing and mastering large innovative projects, systemic integration of research results carried out at different times by different teams, debugging and refinement of both individual subsystems and technologies as a whole are carried out. R&D is financed from the state budget, at the expense of customers, innovation funds, budgets of technology parks, grants, etc. Funding is usually targeted. Development work, the creation of a prototype and the release of a pilot batch are associated with various risks. Their implementation is associated with a high probability of obtaining negative results and loss of funds invested in applied research. This is where risky investments take place. The result of R&D is documented and legally (patent-free) principles, technologies, justifications for the applicability of materials or structures in given conditions, market research methods, etc. R&D carried out on orders often ends technical report(TOR) for development work to create new facilities.

Development work. The stage of development and design work is associated with the specific development of a new type of product. It includes preliminary technical design, production of working design documentation, production and testing of prototypes. Under development work(ROD) refers to the application of the results of applied research to create (or modernize, improve) samples of new equipment, materials, and technologies. R&D is the final stage of scientific research, a kind of transition from laboratory conditions and experimental production to industrial production. Financing of R&D is carried out at the expense of enterprises’ own funds, borrowed funds (loans) and customer funds. Note that customers can be individuals, enterprises, industries, government agencies (city, regional and regional scale). The result of R&D is prototypes of new products with a full set of relevant documentation.

Commercialization of innovation. The practical implementation of the results of innovative activities is carried out at the market stage (commercialization stage). Industrial production stage includes two parallel stages: 1) direct production of materialized achievements of scientific and technical developments on a scale determined by consumer demands; 2) bringing new products to the consumer. Any product goes through the stages of introduction to the market, sales growth (market expansion), slowdown in growth and stabilization of sales volume (product maturity), reduction in sales rates and withdrawal of the product from the market. The creation of innovations is followed by their use by the end consumer with the parallel provision of services, ensuring trouble-free operation, as well as the necessary elimination of obsolete production and the creation of new production in its place.

Note that the innovation process does not end with the so-called implementation, those. the first appearance on the market of a new product, service or bringing a new technology to its design capacity. This process is not interrupted even after implementation, because as it spreads (diffusion), the innovation is improved, becomes more effective, and acquires previously unknown consumer properties. This opens up new areas of application and markets for it, and therefore new consumers. Thus, the innovation process is aimed at creating products, technologies or services required by the market. Its focus, pace and goals depend on the socio-economic environment in which it operates and develops.

The development of diffuse processes at different levels of the emergence of an innovative environment is associated with the spread of innovations and innovations in the business cycles of scientific, technical, production and organizational and economic activities, including the sphere of service provision. Ultimately, diffuse processes make it possible for a new technological order to take a dominant position in social production. At the same time, a structural restructuring of the economy is taking place. When most technological chains for the production of products and the provision of services are updated, business cycles develop in a new direction under the influence of changes in the value system.

Industrial production is usually financed by the enterprise that puts the product into production. If necessary, loans and investments, equity capital are attracted.

To obtain a stable amount of income, a company must work on a product that belongs to three generations of technology: the outgoing ( obsolete ), dominant , emerging ( promising ), Each generation goes through a separate life cycle in its development. Let the company in the period of time from t 1 to t 3 is working on three generations of technology - A , IN , WITH , successively replacing each other (Fig. 7). At the stage of inception and beginning of growth in the output of product B (moment t 1) the costs of its production are still high, but the demand is still small, which leads to unprofitable production. At the same moment, the volume of production of product A (previous generation) is very large, and product C is not yet produced at all. At the stage of stabilization of generation B product output (moment t 2) its technology has been fully mastered, the demand is great. This is the period of maximum output and highest overall profitability for a given product. The output of product A has fallen and continues to fall. The development and development of a promising product C begins before the demand for product B falls, so that at the stage of decreasing demand for this product, the demand for product C is at the stage of growth. A stable value of the firm's total income is ensured by the distribution of efforts between successive products. Thus, the determining factor in the formation of a competitive strategy is that funds should be invested in a progressive product in advance, which requires reliable identification and forecasting of both trends in market demand (marketing research) and trends in scientific and technological progress.

Fig.7. Three generations of product

Obviously, the goal of innovation is to extend the life cycle of the company itself. Moreover, in contrast to the traditional marketing concept of life cycle management, which was dominant in the last century and was focused on extending the life cycle of a particular product, modern life cycle management practice has more flexible approaches in its arsenal.

Quite often, companies artificially remove profitable products from their assortment matrix, thus reducing their life cycle. The goal of such a strategy is either to stimulate the consumption of new products (innovative “cannibalism”), or to reposition the corporate brand. One way or another, managers who decide to introduce a new product into the assortment are often forced to consider the need not just to expand the assortment, but to substitute options.

Depending on the object of innovation, we can talk about three technologies for managing the life cycle:

· product modification;

· market modification;

· repositioning.

It is believed that the foundations of this theory were laid in 1928 by P&G (Procter and Gamble) when formulating the tasks of a product manager. Since the early 1940s. The company is actively commercializing its new brand “Pantene shampoo”. The product is positioned as a fundamental novelty due to the uniqueness of the medicinal formula, and its components are patented. The good price-quality ratio of the product allows it to quickly reach the growth stage, at which the company releases new modifications, deepening market segmentation. Shampoos are appearing for different hair types, with different flavors, and new economical packaging is being offered. During the same period, P&G released Pantene brand air conditioners, thus expanding its product line. The onset of a saturation period at the maturity stage of the Pantene shampoo product in the 1960s. leads to the need to search for new marketing technologies to increase interest in the product and maintain sales at a profitable level. First, the company enters new geographic markets, then new segments, positioning the brand as a product for both men and children. And in the early 1990s. releases a new product upgrade - “Pantene pro-vit”. The vitamin complex included in the shampoo and technologies that allow it to be actively absorbed give the company the right to position the shampoo as a “revolutionary innovation.” This innovation allowed P&G to take a leading position in sales in an industry with more than 1 thousand competitors.

The above situation is a classic example of managing the life cycle using product and marketing innovations. The essence of this process can be depicted using the following diagram (Fig. 8).

Thus, by combining product innovation, reaching new markets and product repositioning, the company is transforming the traditional life cycle curve into a scallop curve. The effectiveness of this process lies not only in extending the life of a product on the market and preventing the onset of a decline stage, but also in increasing sales volumes at each “crest” of innovation. At the same time, consumer loyalty to the overall corporate brand increases by giving it an image of innovation, which means that demand for other assortment groups of the manufacturer is stimulated.

Technology is of particular interest from the point of view of innovative marketing. repositioning product, which is relatively new and the most dynamically developing. In general terms, this process means a new positioning of an old product that has not undergone any changes. Obviously, this innovation is the least expensive, characterized by a low degree of risk, but requires marketers to have good knowledge of the market and the ability to predict consumer preferences.

There are four main repositioning methods:

· highlighting new areas of application;

· giving a new functional image;

· focusing on certain properties not previously highlighted.

The main factors influencing setting a price for a new product, are:

· level of production costs

degree of competition in the market

type of product or service

uniqueness of the product or service offered

· company image

· the ratio of supply and demand for similar goods or substitute goods on the market

elasticity of demand

· factors of the “external environment” (for example, government regulation of prices for certain types of goods)

Obviously, when determining the price, it would be most correct to take into account all the main factors, although the specific weight of each of them may be different. The price of a new product should be determined after careful analysis, taking into account customer perception, competitor prices, and production costs. In the end, whether the price is reasonable or not will be decided by your consumer, who “votes with money” by purchasing this or that product.

In innovative marketing, as a rule, the following types of pricing strategies are used:

• a “cream skimming” strategy used when introducing a new product to the market, when fairly high prices are set for the product. This method works if the company has no competitors and consumers lack information about the product, as well as the need to quickly make a profit. A high-class performer of this “cream skimming” method is the Du Pont company (all women are familiar with its inventions - tights with lycra, Teflon coatings for dishes, cellophane, etc.). So, when presenting another new product to the consumer, the company usually sets the highest possible price for it, designed for buyers with high incomes. When sales stabilize, Du Pont lowers the price to attract the next segment of buyers who are happy with the new price. Thus, the company skims the maximum possible layer of financial cream from various market segments.
• market penetration strategy when relatively low prices are set for a new product - if there are a large number of competitors.
• Prestige pricing strategy used to present new products in terms of quality and prestige, suggesting that to consumers, a high price means a high quality product. This strategy is usually used by already well-known companies.
• a strategy based on consumer opinion in which the price is set at the level that the consumer is willing to pay for the product.

Also, when determining the selling price of innovative products on the market, it is necessary to take into account the following pricing factors:

• level of innovation radicality. If the product is completely new in a given market, then the manufacturer becomes a monopolist for some time and has the opportunity to set high prices;
• the type of market for the sale of products, which is largely determined by the type of product, can be an oligopoly, a monopoly, but mainly refers to the market of monopolistic competition;
• risk level of the buyer and seller. If the innovation risk is borne by the buyer, then the manufacturing company is forced to reduce the price. If the innovative risk is borne by the manufacturer, then he increases the price by introducing an additional fee for the risk;
• company strategy. For example, if a firm pursues an active offensive innovation strategy, then it seeks to set a price that provides the largest amount of profit. If it adheres to a defensive strategy, it can reduce the price in order to prevent competitors from entering this market sector;
• the ratio of supply and demand levels for an innovative product;
• income level of buyers of innovative products;
• changes in prices for additional goods;
• the level of costs for production, sales, and operation of products;
• level of planned profitability;
• government regulators;
• specific terms of the transaction between the manufacturer and the buyer of innovative products.

For innovative scientific and technical products, negotiated prices are mainly used, the conditions for determining and the amounts of which are indicated in business agreements, contracts, agreements, state or municipal orders.

The sales strategy for new products must determine the best combination of working with end consumers, retailers, sales agents and wholesalers. Therefore, one of the key issues of sales is the choice of the optimal path along which the product moves from manufacturer to consumer or sales channel (distribution).

The composition and structure of the life cycles of new equipment and technology are closely related to the parameters of production development. So, for example, at the first stage of the life cycle of new equipment and technology, labor productivity is low, production costs decrease slowly, enterprise profits slowly increase, or economic profits are even negative. During a period of rapid growth in product output, production costs are noticeably reduced and initial costs are recouped.

Frequent changes in equipment and technology create great complexity and instability in production. During the period of transition to new equipment and the development of new technological processes, the efficiency indicators of all departments of the enterprise decrease. That is why innovations in the field of technological processes and tools must be accompanied by new forms of organization and management.

The life-cycle concept of innovation plays a very important role in determining both the maximum output, sales and profits, and the life cycle of a particular innovation.

Analysis of the life cycles of new equipment and technology is carried out in the following sequence, including:

1) determining the total duration of the life cycles of products of a given family, generation over the entire history, in order to establish a stable value of the cycle of a given type of equipment or technological process, including by stages;

2) determining the distributions of the durations of life cycles and their stages around the central tendency, since this is the basis for forecasting the duration of life cycles of a future innovation;

3) development of a basis for strategy and tactics for production growth in accordance with the duration of the life cycle stages of new equipment and technology;

4) probability distribution of the duration of the cycles of future samples and, in proportion to it, resources in the time of the next cycle;

5) a thorough analysis of the factors influencing the duration of past cycles, and extrapolation of the results to predict their impact on the life cycles of future products;

6) formalization of methods for collecting initial data and the use of econometric calculation models.

The methodology for analyzing the duration of life cycles allows us to give an answer about the dynamics of technical and economic indicators of production:

• Firstly, this makes it possible to determine the period of production growth to the maximum, which is equivalent to the best trends in the leading indicators of economic efficiency: levelized costs, production costs, labor productivity, profitability.
• Secondly, it is necessary to establish the dependence of output growth on the extremum of technical and economic indicators and on sales volume, because they, as a rule, do not coincide.
• Thirdly, it is necessary to analyze the trends in changes in technical and economic indicators when the volume of output is doubled, to give an answer: is there proportionality, inertia, a lag effect, etc.

1. PROMOTING INNOVATION

Jean-Jacques Lambin understands marketing communication as “a set of signals emanating from a company to various audiences.” According to J. Burnet and S. Moriarty, marketing communications is the process of transmitting information about a product to the target audience. In order to ensure effective coordination of supply and demand, information flows must circulate between participants in the exchange process, mainly emanating from the company and aimed at bringing to the attention of the market the position that the brand or company claims.

Main goals of marketing communications:

· informing potential consumers about a product, service, etc.;

· formation of preference for a product, trademark, development of a positive image of the company;

· acceleration of purchases by the consumer.

To achieve the above goals, such basic marketing communications tools as advertising, sales promotion, public relations (PR), and personal selling are used.

· Advertising – the term comes from the Latin word reklame - “to shout loudly” or “to notify” (in Ancient Greece and Rome, announcements were loudly shouted or read out in squares and other crowded places). Federal Law of July 18, 1995 No. 108-FZ “On Advertising” gives the following definition of advertising: “ Advertising – information distributed in any form, by any means, about an individual or legal entity, goods, ideas and undertakings (advertising information), which is intended for an indefinite number of persons and is intended to create or maintain interest in this individual, legal entity, goods, ideas and undertakings and promote the sale of goods, ideas, and initiatives. The American Marketing Association defines advertising as any form of non-personal presentation and promotion of ideas, goods or services paid for by an identified principal.

• Personal selling is the verbal presentation of a product during a conversation with one or more potential buyers for the purpose of selling the product or services.
• Sales promotion - short-term activities aimed at the consumer, reseller and sales employee of the company, used to quickly increase sales.

The Institute of Public Relations (IPR) gives the following definition:

Public Relations (PR) is a planned, ongoing effort aimed at creating and maintaining goodwill and understanding between an organization and its public.

When choosing means to achieve marketing communications goals, it is useful to use the concept of the product life cycle. In Fig. Figure 9 shows how product lifespan can be used to plan marketing and communications strategies and to align them logically.

Rice. 9 Using the product life cycle for promotion strategy

Marketing Goals	1)Ensure product trial through early onboarding 2)Minimize training requirements	1) Gaining market share 2) Obtaining distribution channels	1) Maintaining and increasing market share 2) Forming dealer and consumer loyalty	1) Using the product as a “cash cow” and making a profit 2) Considering the possibility of expanded use of the product
Communication goals	1) Creating widespread awareness 2) Generating interest in the product and the desire to buy it among consumers who are the first to try out all the new products (“innovators”)	1) Build and strengthen brand preference among end users and the industry 2) Encourage widespread product trial and use	1) Encouraging frequency of use 2) Encouraging new users	2)Minimum support to ensure all possible sales 3)Maintain brand values ​​where possible 4)Create a special or “classic” niche
Communication strategy (the most valuable set for influence)	1) Publicity 2) Personal selling 3) Advertising 4) Open offers for the industry and consumers	1)Advertising 2)Personal selling 3)Sales promotion campaigns 4)Publicity	1) Advertising 2) Dealer incentives 3) Sales promotion campaigns 4) Publicity	1) Using sales to extend the life of a product and build loyalty to it 2) Reducing media costs
	Implementation stage	Growth stage	Maturity stage	Decline stage

Product life expectancy can also be used to reconcile three other concepts used in marketing planning, namely:

Diffusion of innovation curve (Rogers, 1963), indicating the rate at which potential buyers adopt new ideas;

Ansoff's growth matrices (Ansoff, 1957), which propose alternative strategies based on existing and new products and markets;

The Boston Consulting Group Portfolio Matrix, which allows you to distinguish company products by market shares and growth dynamics.

Each of these concepts can be analyzed using the four stages of product life, as shown in Table 1. 1.

Table 1. Some marketing concepts

Concepts	Stage 1	Stage 2	Stage 3	Stage 4
Product life expectancy	Implementation stage	Growth stage	Maturity stage	Decline stage
Diffusion of innovations	Innovation	Most of those who adapt to products are among the first	Most of those who adapt to products are the last	Lagging
Ansoff growth matrix	Product development	Market development	Market penetration	Diversification and alliances
Boston Advisory Group Portfolio Matrix	"Difficult Children"	"Stars"	"Cash Cows"	"Dogs"

Stage 1 is represented by the options of introduction (product life expectancy), innovation (diffusion), product development (Ansoff) in markets with high growth dynamics and “problem children” (Boston group). Common characteristics include:

New products;

Low sales;

Small market share;

Specific types of consumers ready to buy new products.

Stage 1 communication typically involves increasing consumer awareness at a reasonable cost while also trying to persuade “innovators” to try the new product. To gain additional market coverage and convince consumers to try the product for the first time, public relations or publicity techniques are used. At this stage, mass advertising is usually less effective, since there are still relatively few consumers, and therefore such advertising becomes useless, i.e. the costs for it turn out to be in vain. However, a careful distinction must be made between marketing situations involving consumers and industrial buyers. In consumer marketing situations, the use of mass advertising to introduce new consumer products to a mass target audience is quite possible.

Stage 2 is characterized by:

Growth in sales and profits;

Wider use of the product;

Market development;

Increasing market share;

Increased competitive rivalry.

Stage 2 communications typically involve building and building brand preference among both industry consumers and users. Advertising is used to encourage a wider audience to try the product. Personal selling continues to be important. In general, the advertising budget is increasing, including in order to counter the actions of competitors.

Stage 3 is characterized by:

Market maturity and slowing sales;

Conversion of the majority of consumers into those who adapt to the product, albeit belatedly;

Attempts to penetrate deeper into the market and gain a higher market share.

Stage 3 communications typically require significant advertising expenditures, although not as much as Stage 2. More money is spent on personalized forms of incentives not only for dealers but also for end users. At this stage, attempts are made to expand the market by either increasing the frequency of use of the product or attracting new consumers.

Stage 4 is characterized by:

Declining sales and profits;

Market rationalization through mergers and acquisitions;

The fact that it may be necessary to remove the product from the list of offers;

Because in some cases there may be an expansion in the range of use of products.

Stage 4 communications are often about maintaining brand equity where possible. Costs for general promotion campaigns are reduced, and those funds that are allocated are mainly spent on personalized sales promotion campaigns. Due to this, it is quite possible to retain some loyal consumers by relying on the “traditional” or “classic” image of the product.

In promoting innovations as products at the implementation stage, the most significant means are public relations and personal selling.

One of the important tasks of PR specialists is the formation of long-term, trusting relationships with the media. To maintain interest in the company from journalists, PR specialists must follow the following rules.

· Form an information flow.

· Know how the media works

The time of delivery of materials to the issue, the beginning of editing the latest news, the timing of the preparation of publications and television stories, the format of radio broadcasts, the features of the perception of information on a newspaper page, clothing on the screen, the timbre and speed of speech on the radio - everything matters in the preparation and placement of material.

· Meet the journalists

Find out who specializes in “your topics” and study their work and professional style. This will allow you to send to the editor what they want to receive from you.

· Create informational occasions

Any news needs to be carefully worked on to make it interesting for journalists.

· Create “special events”

Something new and interesting for journalists does not always happen in the company, but in order to constantly maintain their interest in the company and its products, PR specialists hold special events. These could be holidays, competitions, etc.

· Act as an expert

Journalists always need up-to-date, competent information. Any businessman who has a large amount of information about his activities has the opportunity to become an expert. Running specialized newspaper columns (television and radio programs) is a good way to constantly disseminate information about the company.

· Prepare events for journalists

A journalist appreciates when his work is noticed, rejoices when receiving awards, remembers a kind attitude, loves to participate in interesting events, and is pleased when he is invited as a private person.

PR specialists can transmit information to journalists in the following formats:

· A press release is one of the most common ways to convey information to the media. This is a short press briefing document containing an up-to-date message.

· Backgrounder– basic information about the company that is not news. The background can be the history of the creation and development of the company, the biography of the manager, etc.

· Question-answer sheet contains frequently asked questions and their answers.

· History is a case successful use of the company's product. It is issued in the form of an article written on behalf of the journalist.

· Press conference. A press conference can be defined as a meeting of journalists with representatives of organizers (government institutions, socio-political organizations; commercial structures, the purpose of which is to provide the media with factual, problematic and commentary information about an event, phenomenon, project, etc.

To effectively influence innovative buyers, they use personal selling techniques. The peculiarity of personal selling as a type of promotion is an individual approach to each client, i.e. Each time the seller focuses on a specific situation, but there are general principles for conducting sales:

· The principle of positivity.

· The principle of adjustment and guidance.

· The principle of dissociation.

· The principle of non-directiveness.

• The principle of individualization.
• The principle of participation.