ABSTRACT
This chapter explains the nature of innovation in marketing and the factors that affecting its development in decisions to create competitive advantage and customer preference. It aims to evaluate the role of innovation management and risk-taking in achieving competitive advantage. The chapter examines the issues in creating an innovative marketing culture within an organization and explores the incorporation of customer-led Internet marketing into marketing strategies. Innovation is examined from a number of perspectives. Firstly, the nature of technological innovation is considered, together with the processes necessary to exploit it effectively. Discontinuous innovations - have a highly disruptive effect upon usage and purchasing patterns and these innovations require a high level of marketing to explain the benefits and to educate consumers about how the product should be used. Innovation in mature sectors - innovations have taken place by offering customers a quantum leap in value.
