Marketers can use innovations and inventions to create new products and make a profit.
Inventors - sell or license their ideas to others who know how to develop products for the marketplace.
Innovators - much more likely to be marketers as well.◦ Their motivation for improving a product is often
profit-based.◦ Making a product better is a competitive advantage◦ Samsung Galaxy vs Iphone 5.
Market research will reveal that consumers want either a new product or an existing product changed
Marketing teams will brainstorm “How can we make this product better?”
Example: An umbrella company discovers that consumers would like to have their hands free when it’s raining.
Not all ideas will be good ones Companies need to test: (by product testing)
◦ consumer reaction to a new idea◦ Competitive situation in the market
Example: ◦ There might already be a “hands-free” umbrella on
the market◦ The technology to make “hands-free” umbrellas
may not exist
The umbrella company will design one or many prototypes◦ If consumers think a “hands-free” umbrella is a great
idea◦ If there’s been a lot of rain and the market for
umbrellas is large and increasing◦ If there’s little competition in the marketplace
A prototype is a sample of the product◦ How it might look◦ How it might operate◦ And then market-tested (by product testing): Do
consumers like it?
Using observation and research, the company will determine the primary and secondary target market
◦ A marketing strategy will be developed to target the primary market and a marketing plan created to implement the strategy
Target Market Example for “hands-free” umbrella?Primary market – parents of young children between the ages
of 25 and 40Secondary market – commuting professionals who depend on
transit systems and walk to many of their destinations
The product must be one that ◦ the company can make (or buy) and sell◦ consumers want at a price they will pay◦ Produces a profit for the company
The required materials and expected costs of producing the product and distributing it to consumers must all be taken into account
Feasibility is often considered during product design and market strategy stages
The preferences of the primary market must be taken into account.
Example:The Umbrella Company knows that its primary market likes
convenience and practicality. They also like versatility, so the “hands free” umbrella should be easily convertible to function as a “traditional” umbrella.
Product design includes peripherals like a warranty, instruction manual, packaging, and service information.
Testing consumer acceptance of the product
Example:The Umbrella Company gives a “hands-free” umbrella to
several parents of young children, fitting the profile of the primary target market. The researcher asks them to use the umbrella for at least a month. Afterward, the company has the participants fill out a survey: “Would you buy it?”; “How much would you pay for it?”.
If responses are positive, the product is launched.