Purpose
This paper provides a tool for managers to overcome a common paradox in situations of innovation. The paradox occurs when the commercial viability of ideas for new products and services is unknown, making managers loath to invest scarce resources in developing them for fear that they will lose them if the idea is a non-starter. The result is that ideas sit on the shelf, idle and untested. This paper provides a low-cost, intuitive method for determining if a new idea has sufficient commercial potential to warrant investing in its development, thereby resolving the paradox.
Design/methodology/approach
The method is based on six marketing mechanisms derived from crowd funding: choosing a target prospect and positioning, creating a prototype, setting a price based on value, locating prospects; getting an address, communicating with prospects; delivering an effective pitch, and measuring results through advance commitments. The method is illustrated using two entrepreneurial cases.
Findings
Managers who use the method can validate ideas in the marketplace quickly and at low cost, obtaining the information they need to justify an investment in the research, planning and analysis required for commercialization.
Originality/value
The paper identifies a common but little discussed obstacle to innovation, the development paradox, and proposes a novel method of overcoming it. Market testing is not new, but most known methods do not solve the development paradox because they require a significant outlay of resources to undertake.
Le présent article étudie les processus employés par Bory Latour-Marliac à la fin du xix e siècle pour créer le marché des nénuphars rustiques colorés. Il met en parallèle la méthode d’invention du produit et la création d’un marché de consommateurs associé en se fondant sur les archives de l’entreprise pour la période 1881-1891. Celles-ci permettent de mettre en lumière l’usage habile et réfléchi que Latour-Marliac fit de son réseau professionnel et personnel afin de créer le marché des nénuphars hybrides colorés. Notre recherche s’inscrit dans le développement d’analyses historiques dans le domaine de la sociologie économique en apportant une contribution empirique originale grâce à l’analyse d’archives inédites. L’article contribue aussi au débat théorique en recourant à la théorie des trous structuraux pour analyser les données recueillies. Il permet de montrer que le choix de l’échelle d’analyse employée dans l’analyse de processus d’innovation liés à la création d’un marché – entreprise ou entrepreneur – a une incidence significative sur les conclusions tirées de l’observation des processus sociaux à l’œuvre.
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