Marketing_L6(2013)

Starbucks sponsors My Starbucks Idea, a Web site that invites customers to share,

discuss, and vote on new product and service ideas.

“You know beAer than anyone else what you want from Starbucks. So tell us. What’s your Starbucks idea? Revolu%onary or simple—we want to hear it.”

Crowdsourcing

Invi&ng broad communi&es of people - customers, employees, independent scien&sts and researchers, and even the public at large— into the new-product innova&on process.

Open innova&ons vs Closed Innova&on

Idea Screening

Screening new-product ideas to spot good ideas and drop poor ones as soon as possible.

Is it real?

Is there a real need and desire for the product and will customers buy it?

Can we win?

Does the product o er a sustainable compe&&ve advantage?

Is it worth doing?

Does the product fit the company’s overall growth strategy?

Concept Development and Tes&ng

Product idea

an idea for a possible product that the company can see itself o ering to the market.

Product concept

a detailed version of the idea stated in meaningful consumer terms.

Product image

the way consumers perceive an actual or poten&al product.

This is Tesla’s ini&al all-electric roadster. Later, more-a ordable mass-market models will travel more than 300 miles on a single charge, recharge in 45 minutes from a normal 120-volt electrical outlet, and cost about one penny per mile to power.

Product concepts

• Concept 1: An a ordably priced midsize car designed as a second family car to be used around town for running errands and visi&ng friends.

•Concept 2: A mid-priced sporty compact appealing to young singles and couples.

•Concept 3: A “green” car appealing to environmentally conscious people who wanе prac&cal, low-pollu&ng

transporta&on.

• Concept 4: A high-end midsize u&lity vehicle appealing to those who love the space SUVs provide but lament the poor gas mileage.

Concept Tes&ng

Ques;ons for BaCery-Powered Electric Car Concept Test

Marke&ng Strategy Development

Designing an ini%al marke%ng strategy for a new product based on the product concept.

Marke&ng strategy statement

1. Target market; the planned value proposi&on; and the sales, market share, and profit goals for the first few years.

2. The product’s planned price, distribu&on, and marke&ng budget for the first year

3. The planned long-run sales, profit goals, and marke&ng mix strategy

Business Analysis

A review of the sales, costs, and profit projec%ons for a new product to find out whether these factors sa%sfy the company’s objec%ves.