Marketers can use innovations and inventions to create new products and make a profit.

Inventors - sell or license their ideas to others who know how to develop products for the marketplace.

Innovators - much more likely to be marketers as well.◦ Their motivation for improving a product is often

profit-based.◦ Making a product better is a competitive advantage◦ Samsung Galaxy vs Iphone 5.

Market research will reveal that consumers want either a new product or an existing product changed

Marketing teams will brainstorm “How can we make this product better?”

Example: An umbrella company discovers that consumers would like to have their hands free when it’s raining.

Not all ideas will be good ones Companies need to test: (by product testing)

◦ consumer reaction to a new idea◦ Competitive situation in the market

Example: ◦ There might already be a “hands-free” umbrella on

the market◦ The technology to make “hands-free” umbrellas

may not exist

The umbrella company will design one or many prototypes◦ If consumers think a “hands-free” umbrella is a great

idea◦ If there’s been a lot of rain and the market for

umbrellas is large and increasing◦ If there’s little competition in the marketplace

A prototype is a sample of the product◦ How it might look◦ How it might operate◦ And then market-tested (by product testing): Do

consumers like it?

Using observation and research, the company will determine the primary and secondary target market

◦ A marketing strategy will be developed to target the primary market and a marketing plan created to implement the strategy

Target Market Example for “hands-free” umbrella?Primary market – parents of young children between the ages

of 25 and 40Secondary market – commuting professionals who depend on

transit systems and walk to many of their destinations

The product must be one that ◦ the company can make (or buy) and sell◦ consumers want at a price they will pay◦ Produces a profit for the company

The required materials and expected costs of producing the product and distributing it to consumers must all be taken into account

Feasibility is often considered during product design and market strategy stages

The preferences of the primary market must be taken into account.

Example:The Umbrella Company knows that its primary market likes

convenience and practicality. They also like versatility, so the “hands free” umbrella should be easily convertible to function as a “traditional” umbrella.

Product design includes peripherals like a warranty, instruction manual, packaging, and service information.

Testing consumer acceptance of the product

Example:The Umbrella Company gives a “hands-free” umbrella to

several parents of young children, fitting the profile of the primary target market. The researcher asks them to use the umbrella for at least a month. Afterward, the company has the participants fill out a survey: “Would you buy it?”; “How much would you pay for it?”.

If responses are positive, the product is launched.

The product enters the product life cycle.

Use hybrid car, or 3D TV or any other examples to do the 8 steps.

Work with your groups of 3 and then present it to the class at the end.

Mention all 8 steps in your presentation.