Invention and Innovation

Invention

• Discovery or creation of a new device or process.
• Addresses real-world problems and expands understanding and experiences.
• Example: Movable type printing in the 15th century facilitated mass production of printed material.
  • Credited to Johann Gutenberg, though the technique existed earlier in Asia.

Innovation

• Telephone:
  • 1870: Invention.
  • 1892: First rotary phones.
  • 1915: First transcontinental call.
• Television:
  • 1870-1920: Invention and Innovation.
  • 1930: Approximately 200 TV sets in use worldwide.
  • 1952: First CBC broadcast.
• Services:
  • 1980s: Specialty TV networks like MTV, CNN, and ESPN emerged.
  • Present: Services like Crave, Prime, and Netflix allow consumers to binge-watch shows anytime.
• Industries must innovate to be successful due to consumer expectations for new and improved products.

Generating Ideas

• Consult family and friends for support and diverse perspectives, as they know you well.
• Build on hobbies by turning interests and passions into a business, as it's easier to work on something enjoyable.
• Simplify everyday tasks by creating services that help others and improve efficiency.
• Improve existing products by researching what works, identifying areas for enhancement, and building on current offerings.
• Identify everyday problems by listing frustrations and brainstorming novel solutions.

What is a Trend

• Trend: A pattern or direction in the way something is changing, referring to long-term shifts.
• Fads: Something that gains and loses popularity quickly.

Consumer Trends

• Data Privacy Matters:
  • 56% of consumers want more control over their personal data.
  • 87% would avoid companies with poor data practices.
• Augmented Reality (AR) in Shopping:
  • AR enhances online shopping experiences.
  • 35% would shop more if they could virtually try products.
  • Retailers like Ulta and L’Oreal use AR tools.
• Rise of Voice Commerce:
  • Voice shopping uses voice commands via smart speakers.
  • 83% value convenience in shopping.
  • Amazon Echo leads this trend.
• Digital Wallets and Payments:
  • Digital wallets are gaining popularity.
  • 44.5% of US eCommerce transactions use digital wallets.
  • Biometric payments are preferred for security.
• Local Shopping Preferences:
  • Consumers prefer shopping locally, even online.
  • 41% are willing to pay extra for same-day delivery.
  • Hyperlocal delivery services are growing rapidly.
  • Hyperlocal delivery is a business model that delivers goods and services to customers within a limited geographic area.
• Importance of Online Reviews:
  • 89% read reviews before buying.
  • Reviews significantly influence purchasing decisions.
  • Consumers trust ratings and feedback from others.
• Sustainability in Consumer Choices:
  • More consumers are choosing sustainable products.
  • 85% have shifted towards eco-friendly purchases.
  • Packaging also plays a crucial role in sustainability.
• Demand for Secondhand Goods:
  • 50% of consumers buy or sell secondhand items.
  • Driven by sustainability and cost savings.
  • The secondhand market is rapidly growing, especially in fashion.
• Buy Now, Pay Later Options:
  • BNPL is becoming mainstream.
  • 40% of users are Millennials, and 44% of Gen Z will use it.
  • It allows consumers to make purchases in installments.
• Growth of Direct-to-Consumer Sales:
  • DTC sales are increasing as consumers buy directly from brands.
  • Cuts out intermediaries, saving costs.
  • Brands like ENDY are thriving in this model.
• Mental Health and Wellness Trends:
  • Mental health awareness is on the rise.
  • 70% of young people prioritize mental well-being.
  • Practices like mindfulness and meditation are becoming popular.
• Space-Saving Furniture Trends:
  • Gaining popularity, especially in urban areas.
  • Multifunctional pieces help maximize small living spaces.
  • 60% of people prefer furniture that is both stylish and practical.
• Plant-Based:
  • Plant-based options like vegan foods, cruelty-free cosmetics, and sustainable clothing are growing.
  • Look for certifications like "organic" or "fair trade" to ensure products are truly sustainable.
• Health and Wellness:
  • More consumers are looking after their bodies through exercise.
  • They’re keeping track of their steps.
  • They are tracking what they consume and eat and are actively trying to eat healthier.
• The Role of Technology:
  • Technology drives many consumer trends today.
  • Trends like digital wallets and AR are reshaping shopping.
  • Understanding these trends helps businesses succeed.

What is Marketing?

• Marketing encompasses all activities involved in planning, pricing, promoting, distributing, and selling goods and services to satisfy consumer needs and wants.
• It is everything done to connect potential customers with a product or service.
• Effective marketing involves "Putting the right product in the right place, at the right price, at the right time."

Marketing Plan

• Requires a plan revolving around the 4 Ps and 2 Cs.
• Each element must be considered in combination.

The 4 P's

• Price:
  • Determining the cost of a product or service.
  • Must reflect what customers are willing and able to pay.
  • Consumers are price-conscious and seek competitive prices.
• Place:
  • Deciding where a product or service will be available.
  • Involves making it easy for customers to find and buy.
  • Considerations:
    • Place: Retail (display, shelf placement), direct sales, internet.
    • Timing: All-time (cereal) vs. seasonal (Christmas).
• Channels of distribution:
  • The paths that goods follow from producer/manufacturer to consumer.
  • Direct Channels: Connect consumers directly to producers.
  • Indirect Channels: Involve intermediaries like importers, wholesalers, and retailers. Product:
  • A tangible object or service.
  • Market research determines customer identity and preferences.
  • Research informs product design, packaging, branding, and image.
  • Factors include quality improvements, design, features (materials, scent, size, taste), and benefits (needs fulfilled).
• Promotion:
  • Marketing or advertising a product/service to create awareness and drive sales.
  • Methods: Advertising (newspaper, radio, TV, internet), public relations, sales force.

The 2 C's

• Consumer:
  • Marketers research customer demographics.
  • Identifies the "target market" and their characteristics: buying habits, interests, gender, age, ethnicity, geographic range.
• Competition:
  • Requires thorough understanding of competitors.
  • Focus on differentiating factors in all activities.

What is Market Research?

• Market research helps businesses understand their customers and market trends.
• It involves collecting and analyzing data to make informed decisions.

Types of Market Research

• Primary Research:
  • Data you collect yourself.
  • Involves gathering new data directly from sources.
  • Methods: Surveys, interviews, and focus groups.
• Secondary Research:
  • Uses existing data from other sources.
  • Involves analyzing data that has already been collected.
  • Sources: Reports, studies, and online databases.

Primary and Secondary Research

• Consider budget, time, and information needs.
• Primary research is more expensive but offers tailored insights.
• Secondary research is quicker but may not be as specific.