by norhaniza abdul latiff consumers informally monitor potential ideas and needs. formally...
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byNorhaniza Abdul Latiff
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Consumers Informally monitor potential ideas and needs.Formally arrange for consumers to express their
opinions. Existing Products and Services
Analysis uncovers ways to improve offerings that may result in a new product or service.
Distribution ChannelsChannel members can help suggest and market
new products.
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Federal GovernmentFiles of the Patent Office can suggest new
product possibilities. New product ideas can come in response to
government regulations. Research and Development
A formal endeavor connected with one’s current employment.
An informal lab in a basement or garage.
Sources of New Ideas (cont.)
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Focus GroupsA moderator leads a group of 8 to 14 participants
through an open, in-depth discussion in a directive or nondirective manner.
An excellent method for generating and screening ideas and concepts.
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BrainstormingAllows people to be stimulated to greater
creativity. Good ideas emerge when the brainstorming
effort focuses on a specific product or market area.
Rules of brainstorming: No criticism. Freewheeling is encouraged. Quantity of ideas is desired. Combinations and improvements of ideas are
encouraged.
Methods of Generating New Ideas (cont.)
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The overall goal is to obtain several concepts that might work.
All team members are encouraged to be open and uninhabited during the early sessions.
No need to adhere to product specifications, focus on the functional needs of the product.
The primary advantage of brainstorming is the ability of set of individuals to collectively build on each other to generate new ideas that would not arise individually.
An intuitive method of generating concepts.
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Select a group leader, to prevent judgments and to encourage participation by all.
Form the group with 5 to 15 people. Do not confine the group to experts in the
area. Individuals could come to the session with
a set of ideas. Limit the brainstorming to 45 minutes. Do not include bosses, managers or
supervisors in the group.
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Some guidelines for brainstorming session;
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Ken YoussefiUC Berkeley, ME Dept 9
Memory Map – the group leader is responsible for recording the brainstorming session
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Ken YoussefiUC Berkeley, ME Dept 10
Summarize the results of the brainstorming (Example)
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BrainwritingA form of written brainstorming.Participants write their ideas on special forms or
cards that circulate within the group. Problem Inventory Analysis
Consumers are provided with a list of problems and are asked to identify products that have those problems.
Results must be carefully evaluated as they may not actually reflect a new business opportunity.
Methods of Generating New Ideas (cont.)
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CreativityThe ability to make or otherwise bring into existence something new, whether a new solution to a problem, a new method or device, or a new artistic object or form.
Innovation1 : The introduction of something new2 : A new idea, method, or device
Creativity = Idea + Action Innovation = Creativity + Productivity Innovation = Idea + Action + Productivity
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Run informal sessions with customers Allow time off for technical people to
putter on pet projects Make customer brainstorming a part of
plant tours Survey your customers Undertake “fly on the wall” research to
customers
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Use iterative rounds with customers Set up a keyword search to scan trade
publications Treat trade shows as intelligence
missions Have employees visit supplier labs Set up an idea vault
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Observe customers using product Ask customers about problems with
products Ask customers about their dream
products Use a customer advisory board or a
brand community of enthusiasts to discuss product
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Types of InnovationBreakthrough
Fewest number of innovations. Establishes the platform on which future innovations in
an area are developed. Should be protected by patents, trademarks, and
copyrights.Technological
Occurs more frequently; not at the same level of breakthrough inventions.
Offers advancements in the product/market area. Needs to be protected.
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Ordinary Occurs most frequently. Extends a technological innovation into a better product
or service or one that has a different market appeal. Usually come from market analysis and pull, not
technology push.
Innovation (cont.)
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Defining a New Innovation (Product or Service)Newness can be:
In the consumer concept. A change in the package or container. Slight changes or modifications in the appearance of
the product. (Industrial market)Companies also add products to their product line
that are already marketed by other companies; products are new to the manufacturer but not the consumer.
Innovation (cont.)
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Classification of New ProductsConsumer’s Viewpoint
The continuum proposed by Thomas Robertson is based on the disrupting influence that use of the product has on established consumption patterns. Continuous innovations.Dynamically continuous.Discontinuous innovations.
This approach is consistent with the marketing philosophy that “satisfaction of consumer needs” is fundamental to a venture’s existence.
Innovation (cont.)
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Stages in a New/Improved Product Development process:
• Ideas Generation
• Ideas Screening
• Concept Development and Testing
• Business Analysis
• Beta Testing and Market Testing
• Technical Implementation
• Commercialization
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New-to-the-world
Cost reductions
New product lines
Additions
Improvements
Repositionings
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Firm’s Viewpoint Distinction can be made between new products and
new markets. Situations with a new technology and a new market are
the most complicated and pose the highest degree of risk.
Innovation (cont.)
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Innovation(Tech/Non-tech)
Invention
Idea
Technology (Internal, External or Joint)
Product (Internal, External or Joint)
Functional or Technological
Form or Appearance
Marketing (Branding)
Manufacturing or Business Process
@Entrepreneur@
Financial, legal or organizational
Business model
Internal, External, or Joint
Internal, External, or Joint
Internal, External or Joint
Business Strategy
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Establishing Evaluation CriteriaCriteria should be established at each stage of the
product planning and development process. It should be all-inclusive and quantitative in
nature.Criteria should evaluate the idea in terms of:
Market opportunity. Competition. Marketing system. Financial factors. Production factors.
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Idea StagePromising ideas should be identified and
impractical ones eliminated. Evaluation method – Systematic market
evaluation checklist.Determine the need for the new idea as well
as its value to the company. Concept Stage
Refined idea is tested to determine consumer acceptance which can be measured through the conversational interview method.
Product Planning and Development Process (cont.)
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Product Development Stage Consumer reaction to the product/service is
determined. A consumer panel is given a product sample and
preference is determined through methods such as multiple brand comparisons, risk analysis, etc.
Test Marketing Stage Increases certainty of successful
commercialization. Actual sales reflect consumer acceptance.
Product Planning and Development Process (cont.)
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Innovation: process by which new goods and services or new production and operating systems are developed
Enables better response to customer needs Quantum technological change: a rare,
fundamental shift in technology that revolutionizes products or the way they are produced
Quantum innovation: new products or operating systems that incorporate quantum technological improvement
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Incremental technological change: technological change that represents a refinement of some base technology Incremental innovations: products or
operating systems that incorporate refinements of some base technology
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Technology cycleQuantum innovations occur rarely
Technological discontinuityDominant design emergesEra of incremental change and innovation
during which competition is based on technology
Technological discontinuity may occur again and the process starts all over
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Product life cycle: the changes in demand for a product that occur over time
Demand for most successful products passes through four stages: The embryonic stage The growth stage The maturity stage The decline stage
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Product life cycle (cont.) Embryonic stage: a product has yet to
gain widespread acceptance Minimal demand
Growth stage: a product has been accepted by customers
Demand increases Mature stage: market demand peaks
because most customers have already bought the product
Decline stage: occurs if and when demand for a product falls
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Determinants of the length of the product life cycleRate of technological change
Faster the rate of change, the shorter the product life cycle
Role of fads and fashion Determine the attractiveness of products to
customers“Creative destruction”: new companies use
new global and technological opportunities to make better products that drive old, inefficient companies out of business
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Industrial DesignsIndustrial Designs
Business (Idea) point of view:
• Make your product appealing to consumers
• Customize products in order to target different customers (e.g. Swatch)
• Develop the brand (e.g. Apple ’s « Think Different » strategy; i Pod)
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“Bringing together ideas that were previously unrelated”