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Experience Hult 2013 - Prof Tom Hall
The document summarizes a quote by Peter Drucker, who stated that a business enterprise only has two basic functions: marketing and innovation. Drucker asserted that these two functions, marketing and innovation, are what produce results for a business, while all other functions should be considered costs. The quote emphasizes that marketing and innovation are the most important aspects of a successful business.
Experience Hult 2013 - Prof Tom Hall
- 1. “…the business enterprisehas two – and only these two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.” - Peter Drucker
- 2. Hult International BusinessSchool Strategic Innovation Thomas Hall
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- 4. Radar Golf Place atiny electronic tag inside golf balls to make them easy to find 4
- 5. Radar Golf Wouldyou fund/launch this venture? What questions would you ask? 5
- 6. Assess Strength of… NewVenture Team Opportunity Industry Business Model
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- 9. Take Customers Away ClassicStudy - Involves a Coffee Cup What pay to buy the cup? $ 3.12 What would you sell yours for? $ 7.12 NET: Promise a BENEFIT advantage that is DOUBLE the Competition
- 10. Intense Interest High Purchase Probability 8 7 6 5 4 3 2 Low 1 0 0 1 Not atall 2 3 4 5 6 New & Different 7 8 Very 9
- 11. What Strategy HasHighest Margin?
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- 13. What Makes aGreat Idea?
- 14. 3. Dramatic Difference 3.PROFIT 1. PROMISE 1. Overt Benefit 2. PRODUCT (or Service) 2. Real Reason to Believe 14
- 15. Example - NewAutomobile Suspension System Feature Benefit - Dynamic Control - Reduced Roll Over Risk - RD 20 Wheel stiffness - Improved Ride Comfort
- 16. Example of NumericBenefit “Cut Cold Sore Healing Time In Half”
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- 18. BE REAL Tell theTRUTH & do what you promise.
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- 21. Pedigree 15 Years Old ExclusivelyMatured In Sherry Oak Casks
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- 25. Dramatically Different (Harvard BusinessReview) 370% Greater chance of profitable success for ideas that are Extremely/Very Unique
- 26. How Many IdeasDo We Need?
- 27. 3,000 raw ideasresult in 300 written up resulting in 125 projects resulting in 17 project development efforts 1.7 projects introduced For 1.0 success... .03% Success Rate
- 28. Where do wefind innovative ideas? 28
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- 32. I cdnuolt blveieethat I cluod aulaclty uesdnatnrd what I was rdanieg. The phaonmneal pweor of the hmuan mnid Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in what oredr the ltteers in a word are, the olny iprmoatnt tihng is that the first and last ltteer be in the rghit pclae. The rset can be a taotl mses and you can still raed it wouthit a porbelm. This is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the word as a wlohe.. Amzanig huh? 32
- 33. Creativity Edward De Bono Westernthinking Lateral thinking PO (Provocative Operation) Six Hats 33
- 34. Creativity Howard Gardner getinfant-like three conditions - expertise - relevant domain - backed by experts 34
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- 36. Clones create Clones Whatdo you see when you see a rose? Beauty Beauty Beauty 36
- 37. Diversity at Work! Whatdo you see when you see a rose? Beauty Vitamin C Tea Rose Water Tango 37
- 38. How do youcreate a diverse environment?
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- 40. Why do youneed stimulus?
- 41. Where To GoOn Vacation?
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- 44. Where can wefind stimulus?
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- 46. A Fourth Way… ReapplyingTechnologies from One Category to Another
- 48. Create the nextnew dramatically different Golf idea
- 49. Golf Stimulus Trends Bigdata - All knowing Social media - Mobile Sustainability - Societal Consumer Power - Connected Technology Bluetooth strip on neck Memory implants Temporary Social Media Prenatal DNA Sequencing Insights I play to forget my troubles I like to play with my women’s group I want to drive longer than my friends I want to win the bet, even 1 Euro Market Non golf revenue at clubs growing Spa and full restaurants at 19th hole +18 % increase in golf holes played Golf & poker days, ‘bogo’
- 50. Borrowed Brilliance Fedex Ben andJerry’s Hult Intl Bus School Emirates Airlines General Electric Sachin ‘Little Master’ Boston Red Sox United Nations
- 51. Golf Stimulus Trends Bigdata - All knowing Social media - Mobile Sustainability - Societal Consumer Power - Connected Technology Bluetooth strip on neck Memory implants Temporary Social Media Prenatal DNA Sequencing Insights I play to forget my troubles I like to play with my women’s group I want to drive longer than my friends I want to win the bet, even 1 Euro Market Non golf revenue at clubs growing Spa and full restaurants at 19th hole +18 % increase in golf holes played Golf & poker days, ‘bogo’
- 52. PO – LateralThinking Change the normal order Break a category ‘law” Reapply a new technology Eliminate a critical function Exaggerate a positive
- 53. Golf Stimulus Trends Bigdata - All knowing Social media - Mobile Sustainability - Societal Consumer Power - Connected Technology Bluetooth strip on neck Memory implants Temporary Social Media Prenatal DNA Sequencing Insights I play to forget my troubles I like to play with my women’s group I want to drive longer than my friends I want to win the bet, even 1 Euro Market Non golf revenue at clubs growing Spa and full restaurants at 19th hole +18 % increase in golf holes played Golf & poker days, ‘bogo’
- 54. Create the nextnew dramatically different Golf idea
- 55. How Does anIdea Become an Opportunity?
Editor's Notes
- #2 This quote by Peter Drucker highlights the importance of marketing to organizational success.
- #16 What Is A Benefit: • How the new product or service will serve the customer. • What’s in it for ME! • What will the product do to improve, enhance, or change for the better the quality of life. • Benefits listen to the wants and needs of customers Overtly Articulate Benefits • Beware of “Implied” benefits and of beating around the bush....beware of BS • If you are overt in communication you receive full force. If you utilize an implied benefit, you reduce the net impact of the communication. To be really simple about it.... • Example....a pipe flowing at 100 gal/min.....close the valve half way 50 gal/min - It takes twice as long....it costs twice as much in media • Consumers are overwhelmed…they only use about 2% of the available information • You can not insult someone when talking about their need fulfillment • Don’t show off what you have...tell what you can do for them Increasing Focus On Benefit Causes Many Challenges • Unarticulated benefits • Archetype research where we get in touch with inner child • It’s a challenge in many over worked categories How to find benefits • Love your brand...often times we don’t love them like we should • Answer the question....Don’t Sell Me......Sell Me...... • There are always ways to uniquely communicate benefit - Look at the world in a different way..... (Gillette story) Benefits can be EMOTIONAL or RATIONAL • We’re not talking about just emotional words • We’re talking about emotional Benefits - Nike....aspirational- How it’ll make you feel • The more intangible, the more important strategy becomes Overt Visualization of Benefit • Magic Moments • Pictures tell the story • Rocket Package (Get other great examples) • Perfection Game
- #21 Impact of DIFFERENT REASONS TO BELIEVE (no difference) Overt Articulation of Reason to Believe - The more unique the benefit the greater the importance of reason to believe 41 % Pedigree : Benefits are supported through a tangible pedigree such as history of the products creation, the company who created it or the source of the formula or the technology behind the idea. 46 % Demonstration: Shows the product in use providing tangible support that it will do what it says it will do. 42 % Overt Kitchen Logic: Overtly articulates why and how the benefit will be delivered in common sense language. 34 % Implied Kitchen Logic: The concept uses inference as to why the product works. It implies common sense. 45 % Sensory Feedback: Provides sensory feedback that the benefit is being delivered. 41% Testimonial: Overt endorsement of the delivery of the benefit. (customers, research studies, celebrities, experts, etc.) 60 % Guarantee: The company promises the customer will receive something back if the benefit is not delivered. Varies Mortgage A Name: Leverage an existing brand name that has a trust equity with customers. Household Name = 51 % Not A Household Name = 35 %
- #22 Impact of DIFFERENT REASONS TO BELIEVE (no difference) Overt Articulation of Reason to Believe - The more unique the benefit the greater the importance of reason to believe 41 % Pedigree : Benefits are supported through a tangible pedigree such as history of the products creation, the company who created it or the source of the formula or the technology behind the idea. 46 % Demonstration: Shows the product in use providing tangible support that it will do what it says it will do. 42 % Overt Kitchen Logic: Overtly articulates why and how the benefit will be delivered in common sense language. 34 % Implied Kitchen Logic: The concept uses inference as to why the product works. It implies common sense. 45 % Sensory Feedback: Provides sensory feedback that the benefit is being delivered. 41% Testimonial: Overt endorsement of the delivery of the benefit. (customers, research studies, celebrities, experts, etc.) 60 % Guarantee: The company promises the customer will receive something back if the benefit is not delivered. Varies Mortgage A Name: Leverage an existing brand name that has a trust equity with customers. Household Name = 51 % Not A Household Name = 35 %
- #23 Impact of DIFFERENT REASONS TO BELIEVE (no difference) Overt Articulation of Reason to Believe - The more unique the benefit the greater the importance of reason to believe 41 % Pedigree : Benefits are supported through a tangible pedigree such as history of the products creation, the company who created it or the source of the formula or the technology behind the idea. 46 % Demonstration: Shows the product in use providing tangible support that it will do what it says it will do. 42 % Overt Kitchen Logic: Overtly articulates why and how the benefit will be delivered in common sense language. 34 % Implied Kitchen Logic: The concept uses inference as to why the product works. It implies common sense. 45 % Sensory Feedback: Provides sensory feedback that the benefit is being delivered. 41% Testimonial: Overt endorsement of the delivery of the benefit. (customers, research studies, celebrities, experts, etc.) 60 % Guarantee: The company promises the customer will receive something back if the benefit is not delivered. Varies Mortgage A Name: Leverage an existing brand name that has a trust equity with customers. Household Name = 51 % Not A Household Name = 35 %
- #36 Eureka! Bootcamp RECAP JUMP START YOUR BRAIN LOGO The Universal Theory of Creativity Ideas = (BOS) S FF WINNING WAYS LOGO Marketing Physics™ First Law: Overt Benefits Customers maintain established behaviors until they come in contact with an overtly appealing alternative benefit force. Marketing Physics™ Second Law: Real Reason To Believe A new brand will hit the market with a trial force equal to the strength of its benefit times the strength of it’s reason to belive. Thus: Trial Force = B x RTB. Marketing Physics™ Third Law: Dramatic Difference The only way to disrupt marketplace equilibrium is through introducing a benefit and reason to believe pair that is significantly different than currently exists.
- #42 Flip back and forth between the two options. Back to stimulus When deciding what to do on vacation - Blank sheet with numbers - Photo - Repeat, repeat...which is easier stimulus multiplies ideas in your mind, like crossing waves in the ocean Vacation Example 1. Blank Sheet 2. Here’s the old way A. You come up with a list of tired ideas - grandma’s, Disney, Walt’s Gator Farm B. Vacation Stimulus Shot: C. How many more ideas will you get when you let your mind react with all of these things? D. Is it cheating? NO, it’s smart.