Chapters 5
Product Development
Inventions or
Innovations?
Inventions are NEW devices,
methods, or processes developed from
study and experimentation (i.e. the
telephone)
Innovations are products or services
that use new technology, items or
processes to CHANGE EXISTING
products/services (i.e. the cell phone)
Name that Inventor
Who invented the Band-Aid
a) Charles Johnson
b) Alexander Graham Bell
c) Earl Dickson
d) Dorothy Lamarr
EARL DICKSON. He
was an employee at
Johnson & Johnson
in 1921
What insurance salesman invented
the fountain pen in 1884?
a) Lewis Edson Waterman
b) Sir William Grove
c) Charles Kettering
d) George Fountain
LEWIS EDSON
WATERMAN
Who invented Fuel Cells in 1839?
a) Joyce HallWilliam
b) Buckminster Fuller
c) Sir William Grove
d) Sylvester Grahamd
WILLIAM GROVE
What type of system did Charles Jenkins,
Paul Nipkow and John Baird all invent?
a) Television
b) Electricity
c) Early Warning
d) Telephone
TELEVISION
Which famous Canadian inventor is
claimed by Scotland, the US and Canada?
a) Frederick Banting
b) Alexander Graham Bell
c) Elijah McCoy
d) Charles Best
ALEXANDER GRAHAM
BELL
Which of the following inventions was not
invented by a Canadian?
a) Astroturf
b) Ginger Ale
c) Electric Car Heater
d) Garbage Bag
ASTROTURF
Which of the following inventions was not
invented by a Canadian?
a) Film Colorization
b) Saran Wrap
c) Anti-Gravity Suit
d) Electric Street Car
SARAN WRAP
Which of the following sports was
invented by a Canadian?
a) Softball
b) Hacky Sack
c) Cricket
d) Basketball
BASKETBALL
Which of the following musical instruments was
first patented by a Canadian?
a) Piano
b) Organ
c) Flute
d) Clarinet
ORGAN
What kind of time was invented by Canadian,
Sir Sanford Fleming in 1878?
a) Daylight
b) Standard
c) Prime
d) Time Machine
STANDARD
Which famous Canadian was also a prolific
black inventor?
a) Portia White
b) Mary Ann Shadd
c) Elijah McCoy
d) Josiah Henson
ELIJA McCOY. During his
lifetime, McCoy
invented and sold 57
different kinds of
devices and machine
parts. Elijah earned the
honour of being called
the “real McCoy”
Pottery was invented way back in the year…
a) 7900 BC
b) 1250
c) 9900 BC
7900 BC
The Bikini was invented in 1946. What was it
named after?
a) The Bikini Cocktail
b) Miss Bikini – a model
from Puerto Rico
c) The Bikini Atoll in the
Marshall Islands… the
THE BIKINI ATOLL
site of the first atomic
bomb testing
The camera was invented in which country?
a) Austria
b) France
c) Italy
FRANCE
Who invented Plastic?
a) Leo Baekeland
b) Wilbur and Orville
Wright
c) Nicolaus August Otto
LEO BAEKELAND
Who were the first people to make and use
paper?
a) Aztecs
b) Egyptians
c) American Indians
EGYPTIANS
Dr. Edward Jenner invented a vaccine for which
disease?
a) Tuberculosis
b) Typhoid
c) Smallpox
SMALLPOX
Why did Coca Cola not sell very well when
introduced to China?
a) There were rumours that it was made with
extracts of urine
b) The Chinese believed too much drove you
insane
c) The company used characters that sounded
like Coca Cola. Unfortunately this turned out
to mean: “Bite the wax tadpole”
…BITE THE WAX
TADPOLE
The first electronic watch using a battery was
invented in which year?
a) 1953
b) 1853
c) 1959
1953
What was strange about the first glue issued in
Britain in around 1750?
a) It was made from fish
b) It cost more than fresh fruit
c) It was thought to possess healing
properties.
MADE FROM FISH
Why was there a delay in the invention of traffic
lights?
a) Lack of funds
b) A pair of red & green gas lamps
were installed outside the Houses
of Parliament but it blew up and
killed a passing policeman
c) They couldn’t decide which colours
to use
…blew up and killed a
policeman.
Stages of Product
Development
1. Idea Generation: what NEW product
would consumers WANT or how can we
make an EXISTING product BETTER
2. Idea Screening: Not all ideas, at first, are
good ones
3. Concept Development: Create a
prototype = sample of product
4. Market Strategy: Figuring out who the TM
is (demo, geo, psychographics, to put
together a marketing plan to implement the
strategy)
Stages of Product
Development
5. Feasibility Study: Can we advertise, promote,
distribute, transport, store, package, make,
sell… this product? Will people buy it? Will we
make money from it?
6. Product Design: what does our TM like?
Colour, features, material, traditional, trendy
7. Test Marketing: Give your product to your TM
to “test” out. TM can fill out a survey to give
you feedback
8. Market Entry: Your product/service enters the
product life cycle (PLC) (introduction stage)
Product Development & Utility
Product Development: provides a new
or different value (utility) to a product or
service
Utility: what about the product or
service makes it useful?
5 types of utility: form, information,
place, time and possession
Product Development & Utility
1. Form Utility: relationship between a product
or service’s form (the way it looks) & its
function (what it is used for)
Usually, form follows function (i.e. a car, a
winter coat)
Form utility consists of:
Material Colour
Scent Design
Flavour Packaging
Product Development & Utility
2. Information Utility: Provides consumers with
instructions, directions & user manuals
Service reps, internet support services,
consulting services (i.e. 24 hour Tech. Support)
Advertising delivers information utility
Consumers with information about a product or
service receive more value from their
purchases
Product Development & Utility
3. Place Utility: Making the product accessible
for the consumer adds value to the product
The easier the product is to find, the more
place utility it has
The internet and e-commerce has increased
place utility for many companies
24/7 stores (Dominion, Wal-Mart, convenience
stores)
Product Development & Utility
4. Time Utility: Providing the product in
the marketplace when the consumer
needs it adds value to the product
Think about when we buy…
Swimsuits? Lawnmowers?
Snow shovels? Hats and Mitts?
Christmas gifts?
Pumpkins?
Product Development & Utility
5. Possession Utility: Making a product easy to
purchase adds value to the product
Manufacturers give retailers credit terms
When we shop, can use cash, debit, credit
cards, local store credit cards (HBC card) &
cheques
Banks give people credit lines and mortgages
for big purchases
Market Opportunity Analysis
MOA: also known as “situational analysis”
because it defines the various opportunities or
market situations for a specific brand
Three (3) parts to a MOA:
Overall Market: what categories of products
exist? (i.e. toothpaste, desserts, pens etc.)
Indirect Competition: products in the same
category (i.e. all desserts)
Direct Competition: (all pudding brands or
pies or all cakes)
Colours in Marketing
Purple: royal, spirituality, dignity
Pink: soft, sweet, nurture, security
White: pure, clean, mild, youthful
Black: sophisticated, elegant,
seductive, mysterious
Gold: prestige, expensive
Silver: prestige, cold, scientific
Colours in Marketing
Red: excitement, strength, speed,
danger
Blue: most popular colour, trust,
reliability, coolness, belonging
Yellow: warmth, cheer, happiness
Orange: playful, warmth, vibrant
Green: nature, fresh, cool, growth,
abundance