BUSM 3011 Midterm

Brand innovation Tactics

Co-Branding: Olympic Games Component Branding: Intel Private Label: Trader Joes Values Alignment: Patagonia

Message (promotion)

Communicate the differentiated benefit and who it is for. Create a message with your positioning statement

Customer Engagement Innovation Tactics

Community & Belonging: Facebook Social Media: LinkedIn Simplicity: Apple World Wide Developer's Conference Status & Recognition: airlines

5 C Analysis

Company, competitors, context, customers, collaborators.

Product System Innovation tactics

Complements (things that go well together): Spotify Plug-ins: apps Integrated offerings: MS Office Product Bundling: Mcdonalds meals

What are the three color coded categories in the Ten Types Framework?

Configuration - focused on innermost workings Offering - focused on the enterprise's core product or service (or a combination of both) Experience- Focuses on the more customer facing elements

Media/ medium (promotion)

Connects your company with your target segment. Determine what mediums are best for connecting with your target segment.

Channel Innovation Tactics

Context Specific: Trip Advisor Flagship Stores: Apple flagship Direct to customer model On demand: such as uber eats

Extent of innovation - Consumer perspective

Continuous innovation- Requires no new learning by consumers Dynamically Continuous Innovation - disrupts the consumer's normal routine, but does not require totally new learning Discontinuous innovation- requires new learning and consumption patterns by the consumer

3 levels of innovation ambition

Core Innovation, adjacent innovation, and transformational information

What factors drive price up?

Cost of goods sold and profit expectation

Process Innovation Tactics

Crowdsourcing - obtaining info or opinions who submit their info via the internet Localization - adapting content, products, and services to specific local markets On-demand Production User generated

market penetration (Ansoff)

Cur market x cur product low risk includes innovations in features, advertising, promos, price, or packaging.

what are some innovation tactics with product performance?

Customization: StitchFix Ease of Use: Apple Environmentally conscious: Patagonia Simplicity: iPhone Safety: Volvo Air Bags

Give me an example of an innovation that is a new technical competency and a new business model

Digital Imaging (for polaroid and kodak)

Data is an aid to judgement

Do not use data as a definitive answer. It may aid in decision making, but it should not be the only thing going into the decision making.

You should call for more targeted marketing in the _______ stages

Earlier

Copyright

Exclusive right to copy and distribute original work of expression (such as literature, graphics , music, art, software)

Where do ideas come from? (provide external sources and internal sources)

External: competition trends Open innovation/ crowdsourcing Internal: Cross functional ideation -bring in people from different teams Internal audit - look within your own company and portfolio Consumer Experiences Up or down market versions- in your market, what is happening up and down? Look at things with fresh eyes

Successful Innovation depends on talented individuals (true or false)

FALSE -- it depends on disciplined teams using effective methods. It is a team sport!

True or false: Proactive innovation prevents companies from getting patents

False

[True/False] Product development briefs include mandatories that R&D can ignore if they disagree.

False

[True/False] In Qualitative assessment in concept testing, if people do not like the concept, you should throw out the concept.

False -- at this stage, you are not "counting votes". Do not throw out a concept because a few people dislike it.

True or false: Proactive innovation is not a good way to accelerate growth

False -- its a great way

[True/False] Increasing price is easier than lowering price

False! If you lower price, it will be easier because you will make existing customers more happy. Whereas, if you raise prices, you will upset your current customers.

True or false: according to the ten types author, more product variants and like extensions is a useful innovation strategy

False- he says it's nearly useless. in innovation, more variants. product extensions are not always better. if we only rely on product performance innovation, we will not succeed.

True or False: The innovation pipeline should be a funnel not a tunnel because companies have a lot of resources

False-- it is due to the finite number of resources that the innovation pipeline is a funnel

[True/False] Testing a new product after it has been developed is mandatory

False.

Types of reason to believes (concept)

Features or attributes. Logical explanation. Hard evidence or data. Third-party recommendation Emotional aspect.

Porter's Five Forces

Forces that may help companies change their strategies on the marketplace. Forces include: threat of entry threat of substitute supplier power buyer power competitive rivalry

Profit Model Innovation Tactics

Freemium (base product is free but additional features can be purchased for an additional charge): Freemium Ad-Supported: Facebook Auction: Ebay Flexible pricing - uber Licensing - Getty Images Membership - gyms Subscriptions - dollar shave club

Extent of innovation from two different perspectives

From the business perspective, the extent is from low cost/effort with low growth to high cost/effort with high growth. From the consumer perspective, the extent is how much we need to change our behavior to be able to use this product.

Risk matrix application

Gives us the probability of failure depending on the product (how "new" it is to your company) and the intended market (are we selling to the same market?) The probability of failure is highest if we are introducing a new product to a new market.

Stage gate process: What are the four possible gate decisions

Go: Proceed to the next stage. No Go: Stop work, project closed. Hold: Await change in conditions. Recycle: Remain in stage and refine.

Cultivating insights (what are ways we can get consumer insights)

Google trends is a great way to cultivate insight because it tell is what is being talked about around the world Social Listening- monitoring online 'chatter' to find insights in the category (social media and blogs)

Threat of entry (five forces)

How easily can more people enter the market?

Threat of substitute (five forces)

How likely will your customers go to another business for the product or service you provide?

Be aware of the fallacy of a small sample size.

In Qualitative assessment in concept evaluation, you may need to be aware of making decisions based on a small sample size. If most of the small sample leans a particular way, do not forget to consider that this is only a small sample

Innovations have to earn their keep

Innovations must be able to sustain itself AND return its weighted cost of capital.

Why is the product development pattern an hourglass?

It depicts the process of expanding and contracting the number of options

Why does price matter

It impacts revenue, profit, brand image, and investor return

A concept is not an add.

It's more fully descriptive. It's less flashy or entertaining. no taglines or puns for later

You should call for more broad reaching marketing in the ___________ stages.

Later

Where would product line extension be on the extent of innovation? (business perspective)

Left hand side because it is low effort/cost and low growth /risk (example: Burger king releasing low fat fries)

Intellectual Property

Legally protectable ideas, concepts, names, designs, and processes associated with a new product.

Early Adopters (Product adoption curve)

Less disposable income than the innovators and less risk tolerant but they also know a lot of people and influence the early majority to be interested in the innovation.13.5%

Five dimensions to measure in concept Evaluation

Likability Uniqueness Believability Purchase Intent Relevance

BCG matrix: dog

Low market growth rate, low relative market share DIVEST aka get rid of these

According to the Ansoff matrix, trying to increase the appeal of a children's cereal among adults is a form of

Market Development

Market Testing vs Test Market

Market Testing- Different techniques to gain feedback before lunch. This is a SIMULATION Test Market- Not a simulation, but it is the real deal. We are selling out product in a limited market (such as within a certain region).

Product development brief needs to be tight (precise enough to) ______________ but loose enough to _________

Meet consumer expectations ; allow research and development to explore different ways to meet the objectives.

What are the two components of effective promotion?

Message and media

Main purpose of product development briefs

Minimize ambiguity, reduces team conflict, and helps prevent scope creep

Why do we need a product development brief?

Minimizes ambiguity and makes what it expected (and what matters) clear for everyone. It will save us time and money

Why is continuing innovation also called sustaining innovation

Minor innovations keeps the company competitive

What factors drive price down?

Nervousness won't sell.

Core Innovation

"change the known" - only address 1-2 types of innovation -Keeps existing products fresh and competitive -gives a small advantage, but not for long because competitors can copy that innovation

Transformational Innovation

"changes the game" -Involves 5 or more types of innovation -Usually results in a whole new business - high risk, but also the greatest return

Factors that affect how accurate Forecast is

- Consumer Receptiveness (trial potential) - Product Performance (repeat potential) - Competitive reaction - Outside factors (like covid) - Long term trends / short term crisis - Promotion effectiveness (what if our ads suck) - Retailer/ Wholesale support (what retailers would carry this item?) - Speed and breadth of adoption (getting more people to adopt to this innovation)

How to use the ten types of innovation

- diagnose and enhance (look at each of the ten types and ask yourself what more could you be doing) - analyze innovation patterns in your industry

Working with test results in Concept Evaluation

-Compare test results between concepts or a similar benchmark -look for statistical significance to make sure that we have a meaningful finding. -several concepts are evaluated multiple times before narrowing down options -Sniff Test

why should you build a forecast?

-To ensure that it is worth the time and resources to launch the innovation -To manage expectations around financial return - To plan production (such as raw materials) -To plan distribution (such as logistics) -To plan promotion (such as the size of the marketing budget)

Reasons why some companies don't have an innovation strategy. (why they don't innovate)

-We're inwardly focused and prefer to see everything through our own lens. -We know our industry better than anyone. We know what the problems are - and the answers too. -Our culture is risk-averse and anti-breakthrough. -We don't know how to be creative, only analytical. -It's hard to bring ideas from concept to market. -Innovation is easier in a small company or startup.

Product Adoption Curve

1. Innovators (smallest population) 2. Early Adopters 3. Early Majority ( largest population) 4. Late Majority (also largest population) 5. Laggards

Where does the ten types author say we should "shift our focus " to and study?

1. Look within and understand your own enterprise 2. Look around you and get a clear picture of your competitive environment. 3.Look what others are doing outside of your industry. how are people solving problems that are analogous to yours

concept checklist

1. single minded -- make it simple 2. descriptions, not advertisements 3. don't tell consumer's what they think 4. avoid clichés or rhetorical statements 5. approach writing it in a conversational tone

How many questions should you ask in a 1 on 1 interview or small focus group (2-3 people)?

10 max for best results

approximately, how long should a concept be?

100 words max and approximately 45 seconds

Data provides a ______ of the problem., but we need a _______view

2D view; 3d view

Adjacent Innovation

"change the boundaries" -uses 3-4 types of innovation -brand's promise will be more broad and it will address new needs -riskier, but will give a bigger and more long lasting advantage.

What is a concept?

A [single-minded expression] of a new product or service, communicated in a way that the [target consumer] will [clearly understand].

consideration set/ competitive set

A group of brands within a product category that a buyer views as alternatives for possible purchase. We need to consider a consumer's alternatives and their prices when pricing our own innovation in the category.

What is a forecast?

A projection of revenue, focusing on year one

Do you have a higher chance of failure if you release a product new or if you enter a market new to the company?

According to the risk matrix application, the probability of failure is higher if you are entering a new market.

Service Innovation Tactics

Added Value: Amazon Prime Guarantee : automobiles Lease or loans : Home sales Loyalty programs: airlines Personalized service: Ritz Carlton Total Experience Management: Tesla

Which part of the IMC Ecosystem uses pull strategy?

Advertising and brand name

Network Innovation Tactics

Alliances/ collaborations Complementary partnering Franchising/consolidation Open innovation - turn to the public and ask for their ideas Supply chain integration

Inventing the new

An industry changes fundamentally

Think Beyond Products

Aside from products, innovation can be thought of as new ways of doing business , new systems, new services, or even new interactions

Structure Innovation Tactics

Asset Standardization - like Mcdonalds (everything has to be the exact same) Decentralized Management - like whole foods (every store decides what they want to carry)

which parts of the purchase funnel reflects how good your concept is?

Awareness, consideration, and Trial

Path to Purchase a.k.a Purchase Funne

Awareness- Do the customers know about this product Consideration- Are the consumers considering this product over similar ones in the market? Trial- Will the consumers try this product? Repeat- Will the consumers get this product again?

Give me an example of an innovation that is a new technical competency and an existing business model

Biotechnology for pharmaceutical companies

The best forecasting uses what kind of forecasting?

Both top down and bottom up

Components in the Integrated Marketing Communication Ecosystem (IMC)

Brand Name, Sales Promotion, Other, Advertising

explain business model shifts, platform shifts, and customer experience shifts

Business Model Shifts-

Innovation actions of all companies are almost always focused on what three distinct things?

Business Model, Platform, and customer experience.

relationship between business strategy and strategy driven innovation

Business strategy is overarching the entire strategy driven innovation.

Laggards (Product adoption curve)

By the time laggards purchase this innovation, it has already become the industry standard. This is the last group to adopt. 16%

What is the best way to identify unmet consumer needs?

Observe and listen with empathy

Brand benefit ladder

On the lower end, it is more functional and explains what it is. In the middle, it explains what it does On the higher end, it is more emotional and explains how it makes you feel

What kind of questions should you ask in the empathy interview?

Open ended, non-judgmental, non-leading example: What is your idea birthday party (it is bad because it assumes they want a party) Instead, ask: How can we make your birthday special?

Strategy Driven Innovation (5 steps)

Opportunity Identification Concept Generation Concept Evaluation Product Development Launch Period

You have an innovation that is easy to copy and less differentiated. What pricing strategy should you use?

Penetration strategy

"Other" Category in IMC

Personal Selling, Trade Shows, Events

consumer needs

Physical and emotional needs of people related to the use of specific consumer products

Which marketing mix do novice innovators get wrong most often?

Price

Repeat Potential

Probability that the customer will purchase this offering for the second time (would they repeat)?

Ideation aka brainstorm

Process of generating a broad range of ideas that are linked to the identified opportunity spaces.

According to the Ansoff matrix, Launching a smartwatch to appeal to a company's current buyers is a form of...

Product development

what step is in between the product and the concept?

Product development brief

Hourglass (iterative) pattern of product development -- explain the expansion and contraction process.

Product development follows an hourglass pattern because it is repeatedly expanding then contracting Expansion: R&D develops multiple prototypes (aka various ways to address the need) Contraction: Team narrows it down to 2-3 concepts Expansion: Based on the top few prototypes, R&D generates new prototypes and makes refinements. contraction: Team narrows it down to 1-2 prototypes. Expansion: R&D continues refining

Which of the ten types of innovation is often the easiest for competitors to copy?

Product performance

What is the marketing mix?

Product, Price, Place, Promotion

Define Promotion and include some examples

Programs that communicate the offering's benefit, encourage purchase, and build brand equity Examples include: Brand Name Advertising Packaging Sales Promo Trade Promo Direct Marketing Public Relations Events and Trade Shows Sponsorships Personal Selling

_______ moves customers through the funnel

Promotion

Pros and Cons of Test Marketing

Pros: Most accurate sales prediction. Provides data to distribute the product nationally Works out the "kinks" with this production being a "soft launch" Helps us build an accurate production plan at full scale Discover any geographic differences Identify Distribution Issues Cons: Not fully projectable (for example, the test results may vary in different regions due to cultural differences Very expensive Can tip off competitors.

Trade Secrets

Protection of information used in business that offers competitive advantage and you want to keep it a secret (such as processes to make a certain product)

You run into a friend and she tells you about the delicious new matcha drink she just had at Starbucks.

Pull -- word of mouth is a pull tactic

This strategy focuses on the final purchaser

Pull Strategy

What strategy does word of mouth use?

Pull Strategy

If you want long lasting effects, do you want to use push or pull strategy?

Pull strategy

what are the five dimensions that determine trial potential? Which one is the most important?

Purchase Intent Uniqueness (most important) liking relevance Believability

You're sitting in the Starbucks patio when an employee comes by with samples of new cake-popflavors.

Push -- samples are a push tactic

You walk into Starbucks and see a large colorful sign that says "Celebrate Spring with New Matcha Drinks."

Push -- you are in a distribution channel

This strategy focuses on the distribution channel

Push strategy

Push vs. Pull Strategy

Push- When you are visiting a distribution channel (like a store) and a company tries to push a brand on you. Pull- When you are outside of a distribution channel and the company tries to "pull" you into a distribution channel to buy your brand.

Reactive vs. Proactive Innovation

Reactive - Dealing with new pressures as they occur such as countering competitive new, copying and improving, reacting to customer requests or copying new innovations (more defensive) Proactive - Prevent undesirable future events or taking advantage of new opportunities. You must have a strong research and development focus and strong market research to be able to identify customer needs.

Which parts of the purchase funnel reflects how good your product is?

Repeat

Where would disruptive innovation be on the extent of innovation? (business perspective)

Right hand side because high risk and effort, but also has potential for high growth (example: Mainframe computers to PC)

BCG Matrix: Question Marks

Risky new ventures- some will become stars, some dogs low market share and high growth HOLD- try a few things

bottom-up forecasting

Sales are projected by "building up" totaling individual projections eg (item, store, rep) Example: We have 100 sales reps and lets assume each rep can record 100,000 in sales (10 million)

top down forecasting

Sales are projected by "drilling down" from a total market view using certain assumptions. Example: The total market is 40 million. Let's assume that we can grab 20% of the market (8 mill)

What part of IMC ecosystem uses push strategy?

Sales promotion and other

anchor and extend

Select an innovation anchor around which you'll build your concept or business. Anchor should be your core of the value that you deliver to customers and how you beat competitors. From there, consider which other types and tactics are required to make your concept work.

Product development brief

Serves as the bridge from validated concept to viable product. It is centered around the key benefit from the concept and the reason to believe (features, attributes). It also includes any requirements or constraints. Ir also includes product validation ie meeting the benchmark for liking and fulfillment.

You have an innovation that is highly differentiated and hard to copy. What pricing strategy should you use?

Skimming

difference between stagegate and innovation pipeline

Stategate is a micro version of innovation pipeline. Stagegate only applies to one project, whereas the innovation pipeline applies to all of the projects that are happening in the company. They work very similarly though

How are concepts evaluated (two steps)

Step 1: Qualitative Assessment fine tune the concept before spending more resources on the quantitative assessment. This can be done one-on-one or in small groups and our main goal is to check that our wording, tone, and overall message in the concept is good. Make sure that the consumer understands it well. Step 2: Quantitative Assessment measure the give dimensions on a five point scale: (strongly agree, agree, neither agree not disagree.. etc)

Advertising Examples in IMC

TV Internet Email Print Mobile Radio Website Mail

Sources of Innovation

Technology and patents - Ore-ida's flash freezing technology Claims - Quaker Oat's "low cholesterol" oats Effective vertical integration- apple iTunes, iPod, and iPhone Unique Characteristics - Loubiton's red soles Product Experience - Disney's family experience Packaging - EOS lip balm

What is the most advance form of market testing?

Test Market

What can provide the most accurate sales prediction?

Test Markets, but it is also the most expensive and the most risky

To test or not to test

Testing is not mandatory! Here is why we should: - improve product - reduce risk - Better inform the marketing plan - Better meet consumer need - For internal support such as funding Why we should not: - We already have high confidence that it will do well - Similar to existing product/ technology - Time may be limited (such as if you want to release the product during a holiday season or if you want to beat a competitor to the market) - Budget is limited

Concept evaluation

Testing new product concepts w/ your target consumers to determine which ones have the strongest commercial appeal.

What are the 5 things that go into a concept and describe them.

The Headline- Sums up the idea in one simple phrase The Setup- Expresses the consumer's unmet need and makes the consumer insight into a factual statement = The Benefit - Answers the consumer question, "What's in it for me?" The Reason to Believe- Explains why/how the benefit is delivered The Call to Action- Provides purchase information, such as price, varieties and channel

X and Y axis of Internal Competencies & Risk

The Y axis asks do we need to make a new business model. The X axis asks do we require new technical competencies. The riskiest is if you are in the UPPER RIGHT corner, where you need to make a new business model and you require new competencies.

Consumer Insight

The capacity to gain an accurate and deep intuitive understanding of a consumer

To succeed, profit models must align with...

The company's overarching strategy and innovation intent.

What should you consider when setting price?

The cost of the materials / production of the product and the competitive set/ consideration set.

Innovators (product adoption curve)

The first people to buy a new innovation. Very open minded and risk tolerant and the usually have a lot of money. 2.5%

Crossing the Chasm

The hardest thing to do in innovation -- to get your innovation from the early adopters to the early majority

needs vs insights

The insight helps explain the need. Insights are the actionable motivations behind the needs of consumers

The difference between the left and right side of the ten types framework is that

The left side is more internally focused (away from customers ) and the right side is more externally focused (apparent to customers)

Ansoff's Growth Opportunity Matrix

The more lower and right on this matrix, the riskier.

Stage 2 of strategy driven innovation: Concept Generation-- what are the objectives? What are the three things to think about?

The objective is to Ideate and generate concepts. 1. Who is the customer and what do they need? 2. Ideation is brainstorming, so you are generating many alternatives to the unmet need 3.Generate a concept - who needs it and how we will solve their unmet need

Stage 1 of strategy driven innovation: Opportunity identification -- what are the objectives? What are the three things to think about?

The objective is to define, discover, and verify the opportunity. Three things to think about: 1. Is this a viable industry where we can make money? 2. Who are our competitors and what are the alternatives that the customer can pick? 3. Is this opportunity a good fit for out company?

Stage 4 of strategy driven innovation: Product Development -- what are the objectives?

The objective is to develop a product that fulfills concept. -Integrate consumer preferences into the design process. -Develop intellectual property strategy -Make sure the consumers like the product and that it fulfills on the concept

Stage 5 of strategy driven innovation: Launch Period -- what are the objectives?

The objective is to ensure delivery and in market success. Makes sure everything is fully designed. Makes sure you have a launch plan that includes the marketing mix (product, price, place, promotion)

Stage 3 of strategy driven innovation: Concept Evaluation -- what are the objectives?

The objective is to refine, prioritize, and finalize concepts. In this stage you evaluate the concept, the finances, and you refine

Truth, need, friction

The three together lead to powerful consumer insights example: Honey Nut Cheerios Truth: High cholesterol is a leading cause of heart disease Need: To lower my cholesterol so I can avoid heart disease Friction: Low-cholesterol diets are usually bland and unappealing. Consumer Insight: "I know that I should lower my cholesterol, but I'd rather not if it means cutting out the foods I love."

What is the point of the innovation pipeline/ stage gate process?

The whole point of the innovation / stage gate process is to make sure you are doing the right thing at each stage. Also to make sure that the number of projects get narrowed down. Essentially, it prioritizes ideas with the greatest chance of success in the marketplace

What are the stages in the stage gate process?

There are 5 stages, in addition to the Idea Discovery Stage: Idea Discovery- generate new ideas Scoping - quick, inexpensive preliminary research Build the Business Case- Detailed primary search. Build plan for product Development - Designing the product and the production process needed for a full scale production Testing and Validation- Tests or trials in the marketplace, lab, and plant Launch- Commercialization -beginning of full-scale operations or production, marketing, and selling.

What is the relationship between the stage gate process and the innovation pipeline

They are the same

Sales promotion in IMC

Things like discounts, Coupons, Demos, Samples, Loyalty Rewards, Sweepstakes, Sponsorships, and Contests

Late Majority (Product adoption curve)

This group purchases and tries out the new innovation after the early majority does. 34%

Early majority (Product adoption curve)

This group will be the next group to buy after the early adopters. 34%

Competitive Rivalry (five forves)

This looks at the number and strength of your competitors. How many rivals do you have? Who are they, and how does the quality of their products and services compare with yours?

Patent Infringement

To infringe on a patent claim, a device must include each and every element named in the claim. For example, if the competitive product only includes 3/4 elements named in a claim, it would not infringe on the claim.

why do we use stage gate process?

To make sure that progress moves systematically, which will increase our chances of success

Where would brand extension be on the extent of innovation? (business perspective)

Towards the left, but not extreme. This risk/cost is relatively low. (example: Snickers expanding to ice cream bars)

Where would new technology be on the extent of innovation? (business perspective)

Towards the right, but not extreme. This risk/cost is relatively high. (example: Flip phone to smart phone)

What are we evaluating in concept evaluation?

Trial potential - the probability that the target consumer will purchase this offering for the first time (ie would they try it?)

Trial potential (def + how it is determined)

Trial potential is the probability that the target consumer will purchase this offering for the first time. Trial potential is determined by measuring purchase intent, uniqueness, liking, relevance, and believability.

Knowing where to innovate is as important as knowing how to innovate (true or false)

True

True or false: Every industry can utilize multiple of the ten types

True

True or false: Proactive innovation requires strong market research capability

True

[True/False] Poorly designed research is worse than no research at all

True

[True/False] Product development briefs can include both "must haves" and "nice to haves"

True

[True/False] Product development briefs should directly reflect the concept statement just validated

True

Ten types author says you should turn complexity into simplicity

True -- innovations are known for bringing simple solutions to difficult problems.

[True/False] Forecasts are almost always wrong

True-- the key is to identify a reasonable range that will help you plan around your expectations.

[True/False] Features are easily copied.

True. It is the easiest form of innovation to copy

All great insights include

Truth, need, friction

Do novice innovators typically under price or over price?

Under price because they are nervous that their innovation won't sell

key benefit

Unique value that a product provides

sophisticated innovation

Use many types of innovation

simple innovation

Use one or two types of innovation

Market test

Used on finished products in a project. This working product is being tested and put in the consumer's hands. Goal is to: -inform marketing plan -Finalize forecast -refine and improve (only little tweaks)

Product-Use Test

Used when project has reached a working version and is near the final design Goal is to: -Refine and improve - do we keep going or not? -inform marketing plan (pricing, promotion)

Prototype testing

Used when project is not finished Goal is to: -refine and improve - do we keep going or not? -refine packaging -Inform marketing plan

Brand Name (IMC)

Using brand to communicate in market (such as apple)

Give me an example of an innovation that is a existing technical competency and a new business model

Video on demand for dvd rental services

When will price drop when using skimming strategy?

When competitors enter

What is the most persuasive promotion?

Word of mouth. Word of mouth is fed by the other types of promotions, but this is the most persuasive promotion.

You should follow reactive innovation if

You are not looking to get some competitive advantage in the industry. If you want to focus on core business, then follow reactive innovation

While scanning Instagram, a Starbucks ad pops up, telling you about their new matcha drinks.

You are outside of the distribution channel and they are trying to pull you in

What happens to price when competition enters the market?

You will be pressured to lower prices.

Innovation is not invention

[TRUE] innovation may involve invention, but not necessarily

Very little is truly new in innovation

[TRUE]"Every living thing comes from a living thing". Innovations don't have to be new to the world, only to a market or industry.

Stage Gate Process

a disciplined approach that defines specific criteria for each project stage that must be completed before proceeding to the next stage It takes the often complex and chaotic process of taking an idea from inception to launch, and breaks it down into smaller stages (where project activities are conducted) and gates (where business evaluations and Go/Kill decisions are made).

Give me an example of an innovation that is a existing technical competency and an existing business model

a new 3d animated film from Pixar

Design Patent

a patent that offers protection for the way a product looks example: red and white coca cola package

Utility Patent

a patent that protects the functionality of the invention example: the functionality of a pez dispenser

What do the gates do in the Stage Gate Model?

after each stage, a project passes through a gate where a decision is made whether or not to continue investing in the project (a Go/Kill decision). These serve as quality-control checkpoints with three goals: ensure quality of execution, evaluate business rationale, and approve the project plan After the deliverable is measured against the criteria, a decision to either go, kill, hold, or recycle is made.

Testing Logistics for concept evaluation

aim for a sample size pf at least 100 for representatives. They can be conducted on paper or digitally. you can present your concepts in three ways: Monadic: each consumer reviews only one concept Monadic Sequential: each customer reviews multiple concepts (one at a time) Comparative: Each consumer sees concepts side by side. Monadic is recommended to avoid interaction effects and helps take away bias.

What foes the 3d view of the problem include?

along with data. the 3d view includes secondary research, first-hand observations, the marketplace, the team's analytical skill, and your gut.

How does an innovation go from niche to mainstream

by "crossing the chasm" aka having the early majority adopt to this product

In concepts, what is a reason to believe?

convinces the customer that they will receive the benefit.

market development (Ansoff)

cur product x new market med risk includes new consumers, new geography, or alternate use of product

What else can product development briefs be called?

design brief or technical specifications

In concepts, what is a key benefit and what should it include?

explains what job does it perform and why the consumer should choose this option over others. The higher up the benefit ladder, the better

[true/false] Concepts for testing innovation ideas are similar to ads. We're trying to sell something, so the concept needs to be persuasive and sexy and dazzling

false -- concepts are not ads

True or false: Reactive innovation works well if the market is growing fast

false -- if the market is growing fast you HAVE to innovate in order to keep up

True or false: all ten types of innovation apply to every industry

false- not every type applies to every industry.

A five-point scale in which the opposite ends have one or two word adjectives that have opposite meanings

for example: Strongly agree agree Neither agree nor disagree disagree Strongly Disagree

why do we have to innovate

for our business to grow. reasons to innovate may include: Shareholder expectations Emerging competencies Consumer complaints Competitive threat Scarce supply Market shifts Regulation Survival

Innovation pipeline is a

funnel because the criteria for advancement gets tougher at each subsequent gate

BCG Matrix: Cash Cows

have slow growth but high market share MILK: keep cash cows

BCG Matrix: Stars

high growth, high market share - definite keepers GROW - keep this and invest in it. not cheap, but worth it.

skimming strategy

high initial price to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers -Best for highly differentiated innovation -Effective when product is hard to copy

Key benefit will usually be at _____________ of the benefit ladder

higher levels

Buyer power (five forces)

how easy it is for buyers to drive your prices down. How many buyers are there, and how big are their orders?

Supplier Power (five forces)

how easy it is for your suppliers to increase their prices. How unique is the product or service that they provide, and how expensive would it be to switch from one supplier to another?

The key to profitable, sustainable growth is to

innovate for differentiation.

How concept statements affect other parts of the innovation process.

it helps us see if our target market would even be interested in such a product

What does a product development brief include?

key benefit, reason to believe, requirements and constraints. It also has product mandatories (must haves for the product) and product optional (nice to have for the product).

Two key Dimensions of repeat potential

liking/satisfaction and fulfillment of concept

Reason to believe will be at _____________ of the benefit ladder

lower levels

Diversification

new market x new product high risk an example is electric cars.

product development (Ansoff)

new product x cur market med risk example is a new apple product

Service Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "Experience" category How you amplify the value of your offerings. Service innovations can make the products easier to try, use, and enjoy; reveal features and functionalities; and fix any issues. Examples may include product use enhancements, maintenance plans, info/education, warranties, and guarantees. an example is Zappos where the customer service reps are empowered to do about anything they need to ensure users have a good experience. In another example, Men's Warehouse promised free lifetime pressing of any suit.

Network Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "configuration" category Connections with others to create value. Examples of this could be in the form of partnerships, collaboration, etc

Structure Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "configuration" category How you align your talent and your assets Examples of structure innovations include departments such as Human Resources, Research and development resources (R&D), or IT Departments. It is anything that helps create a productive working environment an improving levels of performance within a company. It can also be how the company decides to use it's hard assets differently. For example, southwest airlines only flew one kind of aircraft (Boeing 737), which lowered many service and maintenance costs.

Process Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "configuration" category How you use your signature or superior methods to do your work Unique and better ways to do something Process innovation includes a method or capability that is different form and better than industry norms. An example of process innovation is Zara, who sped up the process of designing a piece of clothing to having it hang in stores through a nonstop flow of information. In another example, Hindistan Unilever took products that were traditionally sold in large bottles and sold them in small, single-use packets, which better catered to the Indian population.

Profit Model Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "configuration" category It is essentially the way a company makes money An example is Gilette, who used to sell the razor blades at a low base price and continue gaining revenue through reoccurring costs of selling the handles. They then swapped the profit model to sell handles at a low base price and having the customers repurchase the blades.

Channel Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "experience" framework How you deliver your offerings to customers and users Examples of channel innovation may include flagship stores and popup stores. A good example of the channel innovation is Nike's NIKETOWN, which is designed to give customers an immersive experience by including treadmills and hiring employees that are knowledgeable in athletics.

Customer Engagement Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "experience" framework How you foster compelling interactions By using consumer insights, you an develop meaningful connections between you and your customers. Several examples may include a social media presence or even elegant and intuitive packaging. An example is apple showing off its new products and software at its World Wide Developers Conference, which allows apple partners to play with (and give feedback) on the new technologies. Tickets for this conference sells out within two hours.

Brand Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "experience" framework How you represent your offerings and business. Brand innovations ensure that customers recognize, remember, and prefer your offerings over competitors. An example is trader joes, which creates private labels for their products by cutting out the middle man and going directly to suppliers to find unique products.

Product System Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "offering" category How you create complementary Products and Services. Examples may include product bundling (taking several related products and selling them in a single package), extensions to existing, product and service combinations, and complementary offerings (two things that work fine on their own, but are better together). Examples includes Microsoft office, which bundles all of the programs or lunchables.

Product Performance Innovation (What is it and what category is it in the Ten Types Framework?)

part of the "offering" category How you develop distinguishing features and functionality. It may involve both entirely new products and updates/ line extensions. Examples include simplification (making a product easier to use), sustainability (more environmentally friendly), or customization Example is customizing personalized m&ms

Scope Creep

project change that was not included in the brief. It is distracting and costly and takes away from the main project.

The price you set should....

properly reflect the value of your offering and be believable.

Should you do secondary research or primary research first?

secondary

Sustaining innovation

small and incremental changes in established products rather than dramatic breakthroughs. These types of changes include continuous and dynamically continuous innovation.

BCG matrix

stands for "boston consulting group" matrix and places business on a matrix depending on their market share and market growth. make sure you're aiming to compete in a market with high growth, in which you can can gain a high share.

According to the BDG matrix, a business with high share and high market growth is a

star

empathy interview

start with light questions and you build rapport by asking more questions about their story and what is important to them. The peek of this interview is exploring their emotions

penetration strategy

strategy in which a product is priced low to attract many customers and discourage competition -Used to drive fast adoption -Best for less differentiated innovation - Good for products that are easy to copy - Helps if category is price-sensitive

improving the known

stuff gets better as researchers and engineers find out what people need

patent

temporary monopoly on a product design (usually around 20 years). It must be novel, useful, and non-obvious. Types: design patent and utility patent It is a right to TRY TO protect your innovation ie a right to sue someone who infringes

Trademarks

the exclusive right to use a brand or part of a brand. For example, the name "honey nut cheerios" is a trademark.

Reason to Believe

the most convincing proof that the brand delivers what it promises

What happens if you get a thumbs down during the concept evaluation? What happens if you get a thumbs up?

thumbs down: Use results to improve the concept thumbs up: Move to stage 4, product development

Ten types author says to refuse incomplete answers (true or false)

true

The author of ten types says to tackle the hardest problems first (true or false)

true

True or false: According to the ten types author, you should see where your competitors are focusing and then make different choices.

true

True or False: The stage gate process and innovation pipeline are essentially the same thing

true. at each stage we are killing certain projects and we are funneling only the most potentially successful projects.

are pictures a good idea in a concept?

yes, it helps the consumer visualize themselves using it.

You haven't finished innovating until

you bring the offering to the market and you're getting revenue for it (or helped your stakeholders in a new way that can sustain itself over time)