Business idea

1. BUSINESS IDEA

2. The Idea
• All good ideas share at least one of three goals:
– They make life for the customer easier. (efficiency)
– They make life for the customer better. (effectiveness)
– They allow the customer to do new things. (innovation)
• Example: “If you go to five travel sites, you will
be presented with five different offers. Traveling
to each site is time-consuming and confusing.
We are a discount travel website. We have
written software that searches all the other travel
sites and collates their price quotas into one
report.”

3. Understand Your Idea
Have you examined your idea – broadest sense?

4. Idea Type
• Type A – New Market
• Type B – New Technology
• Type C – New Benefit
• Type D – Replication

5. Idea Category Description
Type A
Providing customers with a product or service that does not
exist in their market. Product or service exists in other markets
but not currently available in your market.
Type B
New technology centered on providing customers with a new
product that does not exist in any market.
Type C
Provides customers with an improved product. Basically a
“me-too” product strategy that provides a “new benefit” not
offered by the competition.
Type D Replication of existing products. “Me-too” w/no differentiation.

6. 4-6
Sources of New Ideas
 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 Channels
 Channel members can help suggest and market
new products.

7. 4-7
 Government
 New product ideas can come in response to
government regulations.
 Research and Development
Sources of New Ideas (cont.)

8. 4-8
Methods of Generating New Ideas
 Focus Groups
 A 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.

9. 4-9
 Brainstorming
 Allows 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.
 Quantity of ideas is desired.
 Combinations and improvements of ideas are
encouraged.
Methods of Generating New Ideas
(cont.)

10. 4-10
 Brainwriting
 A form of written brainstorming.
 Participants write their ideas on special forms or
cards that circulate within the group.
Methods of Generating New Ideas
(cont.)