Innovation

Question 1

What is the combined definition of innovation?

Answer 1

Systematic practice of creating and marketing new products/services for customer adoption.

Question 2

How does creativity relate to innovation?

Answer 2

Creativity generates ideas, while innovation implements them to add value.

Question 3

Why is innovation essential in free markets?

Answer 3

Drives evolution of products to better meet consumer needs.

Question 4

What role does marketing play in innovation?

Answer 4

It identifies market needs and creates superior solutions to meet them.

Question 5

How does marketing identify consumer needs?

Answer 5

Through market research and understanding customer pain points.

Question 6

Define disruptive innovation.

Answer 6

Innovations that create new markets and displace existing products/companies (e.g., driverless cars).

Question 7

Why is disruptive innovation impactful?

Answer 7

It redefines market structures and challenges existing business models.

Question 8

What is NPDP?

Answer 8

New Product Development Process (NPDP)

Question 9

Advantages of NPDP?

Answer 9

Consistent production, resource dedication, idea diversity, and objective evaluation.

Question 10

Disadvantages of NPDP?

Answer 10

High cost, needs scale, favors incremental over disruptive changes, risk of market introversion.

Question 11

List the 6 NPDP process stages.

Answer 11

Policy development, 2. Idea generation, 3. Screening, 4. Development, 5. Decision, 6. Commercial launch.

Question 12

Why is NPDP uncommon in NZ businesses?

Answer 12

Small scale makes supporting NPDP difficult.

Question 13

Key NPDP pressure points?

Answer 13

product policy, concept development, specifications, financial analysis, commercialization.

Question 14

Outcomes of failing at pressure points?

Answer 14

Lack of resources, no consumer need, unprofitability, or missed market opportunities.

Question 15

What is an innovation policy?

Answer 15

A strategic plan outlining innovation roles, goals, and resource alignment in an organization.

Question 16

What are indicators of a poor innovation policy?

Answer 16

Fragmentation, introspection, lack of direction, and resource constraints.

Question 17

What is an offer concept?

Answer 17

Links consumer need, potential revenue, solution, and costs.

Question 18

Steps to develop offer specifications?

Answer 18

Define cycle, set specifications, consolidate, assess functionality, and ask “How can it fail?”

Question 19

Why is offer deletion necessary?

Answer 19

To remove low-selling products, reduce costs, and make space for new innovations.

Question 20

What happens if products are not deleted?

Answer 20

Overcrowded market, increased costs, and reduced product focus.

Question 21

What is a form study prototype?

Answer 21

Shows product size and appearance but not functionality.

Question 22

Define functional prototype.

Answer 22

Captures function and appearance, potentially with different production methods.

Question 23

What is a service blueprint?

Answer 23

A guide for service delivery, detailing physical evidence, staff actions, and support needs.

Question 24

Why use a service blueprint?

Answer 24

To standardise and improve service consistency across channels.

Question 25

Steps before launching a product?

Answer 25

Define target audience, validate product, secure online presence, assess competitors.

Question 26

Why is audience knowledge essential before launch?

Answer 26

Ensures the product meets specific customer needs and resonates with them.

Question 27

Why is financial analysis critical in innovation?

Answer 27

Identifies risky inputs, sets targets, and supports diagnostics if goals aren’t met.