4-2Trends The start of a trend that lasts for aconsiderable period of time provides one ofthe greatest opportunities for starting anew venture. Trends that will provide opportunitiesinclude: green trend, clean-energy trend,organic-orientation trend, economic trend,social trend, health trend, and Web trend.
4-3Sources of New Ideas Consumers Informally monitor potential ideas and needs. Formally arrange for consumers to express theiropinions. Existing Products and Services Analysis uncovers ways to improve offeringsthat may result in a new product or service. Distribution Channels Channel members can help suggest and marketnew products.
4-4 Federal Government Files of the Patent Office can suggest newproduct possibilities. New product ideas can come in response togovernment regulations. Research and Development A formal endeavor connected with one’s currentemployment. An informal lab in a basement or garage.Sources of New Ideas (cont.)
4-5Methods of Generating New Ideas Focus Groups A moderator leads a group of 8 to 14participants through an open, in-depthdiscussion in a directive or nondirective manner. An excellent method for generating andscreening ideas and concepts.
4-6 Brainstorming Allows people to be stimulated to greatercreativity. Good ideas emerge when the brainstormingeffort focuses on a specific product or marketarea. Rules of brainstorming: No criticism. Freewheeling is encouraged. Quantity of ideas is desired. Combinations and improvements of ideas areencouraged.Methods of Generating New Ideas(cont.)
4-7 Brainwriting A form of written brainstorming. Participants write their ideas on special forms orcards that circulate within the group. Problem Inventory Analysis Consumers are provided with a list of problemsand are asked to identify products that havethose problems. Results must be carefully evaluated as they maynot actually reflect a new business opportunity.Methods of Generating New Ideas(cont.)
4-8Creative Problem Solving Creativity tends to decline with age,education, lack of use, and bureaucracy. Latent creative potential can be stifled byperceptual, cultural, emotional, andorganizational factors. Creativity can be unlocked by using any ofthe creative problem-solving techniques.
4-9 Brainstorming Session starts with a problem statement. No group member should be an expert in thefield of the problem. All ideas must be recorded. Reverse Brainstorming A group method that focuses on the negativeaspects of a product, service, or idea as well asways to overcome these problems. Care must be taken to maintain group morale.Creative Problem Solving (cont.)
4-10 Gordon Method Method for developing new ideas when theindividuals are unaware of the problem. Solutions are not clouded by preconceived ideasand behavioral patterns. Checklist Method Developing a new idea through a list of relatedissues. Free Association Developing a new idea through a chain of wordassociations.Creative Problem Solving (cont.)
4-11 Forced Relationships Developing a new idea by looking at productcombinations. A five step process which focuses on generatingideas from relationship patterns betweenelements of a problem. Collective Notebook Method Developing a new idea by group membersregularly recording ideas.Creative Problem Solving (cont.)
4-12 Attribute Listing Developing a new idea by looking at thepositives and negatives. Big-Dream Approach Developing a new idea by thinking withoutconstraints. Parameter Analysis Developing a new idea by focusing on parameteridentification and creative synthesis.Creative Problem Solving (cont.)
4-14Innovation Types of Innovation Breakthrough Fewest number of innovations. Establishes the platform on which future innovations inan area are developed. Should be protected by patents, trademarks, andcopyrights. Technological Occurs more frequently; not at the same level ofbreakthrough inventions. Offers advancements in the product/market area. Needs to be protected.
4-15 Ordinary Occurs most frequently. Extends a technological innovation into a betterproduct or service or one that has a different marketappeal. Usually come from market analysis and pull, nottechnology push.Innovation (cont.)
4-16 Defining a New Innovation (Product orService) Newness can be: In the consumer concept. A change in the package or container. Slight changes or modifications in the appearance ofthe product. (Industrial market) Companies also add products to their productline that are already marketed by othercompanies; products are new to themanufacturer but not the consumer.Innovation (cont.)
4-17 Classification of New Products Consumer’s Viewpoint The continuum proposed by Thomas Robertson isbased on the disrupting influence that use of theproduct has on established consumption patterns. Continuous innovations. Dynamically continuous. Discontinuous innovations. This approach is consistent with the marketingphilosophy that “satisfaction of consumer needs” isfundamental to a venture’s existence.Innovation (cont.)
4-18Figure 4.3 - Continuum forClassifying New Products
4-19 Firm’s Viewpoint Distinction can be made between new products andnew markets. Situations with a new technology and a new marketare the most complicated and pose the highest degreeof risk.Innovation (cont.)
4-20Figure 4.4 - New ProductClassification System
4-21Figure 4.5 - A Model of theOpportunity Recognition Process
4-22Product Planning and DevelopmentProcess Establishing Evaluation Criteria Criteria should be established at each stage ofthe product planning and development process. It should be all-inclusive and quantitative innature. Criteria should evaluate the idea in terms of: Market opportunity. Competition. Marketing system. Financial factors. Production factors.
4-23Figure 4.6 - The Product Planningand Development Process
4-24 Idea Stage Promising ideas should be identified andimpractical ones eliminated. Evaluation method – Systematic marketevaluation checklist. Determine the need for the new idea as well asits value to the company. Concept Stage Refined idea is tested to determine consumeracceptance which can be measured through theconversational interview method.Product Planning and DevelopmentProcess (cont.)
4-25 Product Development Stage Consumer reaction to the product/service isdetermined. A consumer panel is given a product sample andpreference is determined through methods suchas multiple brand comparisons, risk analysis,etc. Test Marketing Stage Increases certainty of successfulcommercialization. Actual sales reflect consumer acceptance.Product Planning and DevelopmentProcess (cont.)
4-26E-commerce and Business Start-up E-commerce offers entrepreneurs anopportunity to be creative and innovative. Factors that facilitate high-growth inelectronic commerce: Widespread use of personal computers. Adoption of intranets in companies. Acceptance of the Internet as a businesscommunications platform. Faster and more secure systems.
4-27 Using E-Commerce Creatively Entrepreneurs have to decide whether to: Run Internet operations within the company. Outsource these operations to Internet specialists. Use e-commerce packages provided by softwarecompanies. The integration of front-end and back-endoperations represents the greatest challenge fordoing Internet business.E-commerce and Business Start-up(cont.)
4-28 Web Sites Ease of use. Structure and organization of information. Search capability. E-mail response system. Speed. Compatibility with different browsers andplatforms.E-commerce and Business Start-up(cont.)
4-29 Tracking Customer Information Electronic databases track the activity of theindustry, segment, and company. It supports personal marketing targeted atindividual clients. Care must be taken to follow the laws protectingthe privacy of individuals.E-commerce and Business Start-up(cont.)
4-30 Doing E-Commerce as an EntrepreneurialCompany Products should be delivered economically andconveniently. Products need to interest a wide market;company must be ready to ship the productoutside its own geographical location. Online operations should bring significant costreductions. Company must be able to economically drawcustomers to its Web site.E-commerce and Business Start-up(cont.)