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ProductDevelopment,Innovation,GameChanging10xGrowthInterviewWith:DrMichaelHewitt-Gleeson

Episode101

ReleasedtoiTunes:5October2016

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TheBusinessFirmisaninternationalbusinessconsultancycompanybasedinAdelaide,SouthAustralia. Weprovidebusinessservicestocommercialenterprises,governmentagenciesandnon-profitorganisations.

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BUSINESSPLANNINGWewritesophisticatedbusinessplansfororganisationsthatprovideablueprinttoachieveitsobjectives.Documentationiscomprehensiveandeasytofollow,likeanoperationsmanual–stepbystep.Allourbusinessplanningisbasedonfactandrealmarketconditionssotheyarerelevantandachievable.

RESEARCHWeconductmarketresearchtodeterminetheviabilityofamarketorproduct.Wedocustomersatisfactionresearchtofindoutwhatanorganisation’scustomerthinkofitsproductsandservices.Wealsoconductbrandresearchtodeterminetheattitudesheldbythemarkettowardsanorganisation.

MARKETINGSTRATEGYANDBRANDWepreparestrategicmarketingplansforourclientsthatprovideforgrowthofsales,increaseinmarginsandgrowthofthebrand.Ourfocusisnotonlytocreatewealth,buttocreateabrandthatishighlyvaluable,soitisworththemostmoneypossibleintheeventabusinessissold–ortheownerisnolongerinvolved.

ADVERTISINGANDPROMOTIONWeunderstandthemostcostefficientandthemosteffectivewaytospendmoneyonadvertising.Wecreateadvertisingfortelevision,radio,musicaljingles,newspapers,displayads,outdoorbillboards,cinema,online(Google,internetbannersetc.)andforthesponsoringofevents,teamsetc.

eLEARNING,TRAINING&EDUCATIONPRODUCTSWedevelopcustomised,highlyinteractive,game-basedonlinelearningcoursesfororganisations.ThesehighqualityeLearningsolutionsallowanorganisationtoachievefullcompliancewithallindustryandstateregulationsatsignificantcostadvantageandinreal-time.Solves:compliance,inductions,registrations,assessments,workplacetrainingandotherknowledge-basedrequirements.Inperson/classtrainingtoo.

SALESSTRATEGYANDSALESFORCEMANAGEMENTSalesarethelife-bloodofallorganisations;therefore,yoursalesstaff(whomrepresentbothyourbiggestassetandyourbiggestexpense)out-performsyourcompetitors.TheBusinessFirmhelpsyouachieveworld'sbestpractiseinsalesthreeways:bycreatingacustomisedsalesplan;byteachingsuper-effectivesalestechnique;andtrainingtheentireorganisationincustomerservicesoyourclientsonlyeverexperiencetotalsatisfactionandbuyagainwhenitistime.

EVENTMANAGEMENTWeplan,executeandassesseventsfororganisations,suchasproductlaunces,professionalseminars,tradeshows,fundraisingdinners,auctions,conferences,sportingeventsandentertainmentshows.Wewillmanagealllogisticsforevents,includingticketing(bothphysicalandelectronic)aswellasback-endsystemstohandlesales,statisticsandthecreationofaCustomerRelationshipManagementdatabase.

CONSULTINGANDTURN-KEYPLANNINGWewillcreateforyouaworld-class,modernbusinesssystemthatwillscaleseamlessly,allowingyoutogrowalargebusinessthatiseasytorun,issuperefficientandsignificantlymoreprofitable.Wesupportorganisationsfrombeginningtoend:fromresearchtostrategicplanning,itsimplementation,thetrainingofstaffonsystemsuponrollout,systemsoperationsanditsongoingrefinementandimprovement.

DIGITALONLINEANDWEBSITEWecreate:websites,eCommercesolutions,Facebook,YouTube,Twitter&LinkedInsocialstrategies,YellowPagesdigitaladvice,searchengineoptimisation,iTunesworldwidesales,Appleapps(iPhone,iPad,iBooks),Google,Bing,Yahoolistingsandaffiliaterevenueforyou.

FUNDRAISINGSYSTEMSWecreatefornon-profitsorganisations:regulargivingprogrammes,attractsponsorships,membershipgrowth,events&functions,In-Memoriamdonations,majorgifts,capitaldrives,databasemanagement,competitions&socialmediafundraising.

AUDIO,VIDEOANDPODCASTPRODUCTIONOurinhousestudioproduceshighqualityaudioandvideocontentforradio,podcating,television,YouTube,onlinestreamingbroadcasts,education,training,sales,leadgeneration,events,productlauncesandfundraising.

PUBLICRELATIONSANDLOBBYINGWeplanandexecuteproductlaunches,opendays,facilitytours,tradeshows,pressreleases,publicity,mediarelations,pressconferences,lobbying,informationevents,competitions&giveaways.Wealsododirectmailcampaigns.

PUBLISHINGHOUSE(inc.electronicpublishing)Wecreate:magazines,yearbooks,almanacs,manuals,tenders,books,novels,textbooks,electronicpublishing,investorprospectus.Wealsoofferproofreadinganddocumentlayout.Wecantakeyourexistingprintworksandpublishthemelectronicallysotheycanbedistributedworldwide.Thisisthelargestdistributionchannelintheworld.Wehelpyousellyourworksgloballyordistributeforfree.

ONLINEEVENTBROADCASTING,WEBCASTS&WEBINARSWecreateengaging,highconversiononlinebroadcastsfororganisationsworldwide.Wedevelopprofessionalqualitycontentthatconveysyourmessagewithpower.Whetheryouwanttoselltobusinessesorindividuals;educateandinform;influencepublicopinion;generateleadsglobally;streamyourliveeventonlinetotheworld;recordandpostforopenreplay;orrunanonlinesummit;wehavetheproductioncapabilityandonlinevideocapacitytobeaglobalstar.

NEWSLETTERS,MAGAZINES&PROSPECTUSWecreatenewslettersfororganisations,magazinesforindustrygroups,catalogues,syllabuses,investorprospectuses.Wepreparetenders,bids,proposalsandsalesdocuments.Wewillmanagetheentireprocessfromtexttodesktopdesigntoprintingthefinalproduct.

PRESENTATIONSANDMULTIMEDIADISPLAYSWecreatestunningsalespresentationsthathavehighimpactandgetresults.Publicdisplaykiosks(touchscreeninformationdirectories).Educationalinteractivelearningaids.Shopwindowdisplaystosellitems.POSdisplays.Shoppingmalldisplays(foradvertisingandinformation).

About the Podcast WeproduceaweeklyradioshowthatisdistributedgloballythroughiTunesandonStitcherRadioasapodcast.Theshowisdesignedspecificallyfordecisionmakers:entrepreneurs,businessowners,high-levelmanagersandBoardDirectorswhotypicallycontrolsignificantplantandhumancapital.Eachepisodeputsanotherpieceofgoldinyourpocket,representingdifferenttopicsrelatedtorunningahigh-performingbusiness.Youwillgetempiricallyproven,strategicadvicethatwillresultinmoreprofitforyou.Areascoveredinclude:strategicmarketing,businessdevelopment,salesperformance,advertising,publicrelations,socialmediapromotions,eCommerce,large-scalefundraising,researchandhowtobuildaglobalbusinessproperly.Youwillcollecthigh-levelcontentfromhostMrStevenMarioCavallo,TheBusinessFirm'sfounder;andyouwillalsogettheopportunitytohaveabusinessproblemyouaredealingwith,solved.Youcansubmitanaudiorecordingofareal-lifebusinessissuebyemailinganmp3fileto:answers@thebusinessfirm.comauYou’llalsoenjoyasky-highviewfromtheTowerofSuccesswhereyou’llsitalongsideSteveninTheBusinessFirmPresidentialLoungeandpickthebrainsoftheverybestbusinessthoughtleadersintheworld,duringaninterview.Youareinvitedineveryepisodetolistentointerviewswithincredible,world-leadinginformationsharedbysomeofthebusinessworld'smostexpertthoughtleaders.Guestsincludetoppractitioners,entrepreneurs,ProfessorsfromthegreatestUniversitiesoftheworld,successfulbusinessowners,coachesandmentors,industryleaders,authorsandotherhigh-achieving,credibleindividuals.Ifyoufittheabovedescription,havecontentofvaluetobusinessownersandareaconfidentspeaker,pleaseapplytobecomeaninterviewedguestbyemailingusat:guest@thebusinessfirm.com.auThisistheshowthatwillhelpyouinyourduty,ofbeinganeffectivebusinessleader.TheBusinessFirmRadioShowisproducedinAdelaide,SouthAustraliaweeklyandreleasedinternationallytoourworldwideaudience:thedecisionmakersandentrepreneurswhoarebuildingourglobaleconomy.SubscribetoTheBusinessFirmPodcastoniTunesandnevermissanepisodeagain,asitwillautomaticallyappearforyoutolistentoonyourdevice,atyourownconvenience.Inadditiontoenjoyingthefreeinformationonthepodcast,youarewelcometoafreeseatinthenextWebinar(onlineseminar)whereStevenwillbepresentingvitalaspectsofmarketingscienceandbusinessdevelopment.Topicscoveredinclude:howadvertisingREALLYworksandhowtoonlyspendmoneyonwhatACTUALLYgivesreturns.Learnhowtosell20%morewithoutanyextracustomers;andwerevealthetruthaboutconsumerbehaviourandHOWbuyersactuallychoosebetweenyourbrandandyourcompetitors’.Plus,you'lllearnthethreebiggestpiecesofmisinformationthatwastesmoneyandleadstonothing–thingsthatnearlyeveryonehasalreadybeensuckedintodoing!Thisinformationistotallyunknownbyyourcompetitors(andthefalse'gurus');soknowingitisalucrativeadvantageyoucaneasilygetoveryourcompetitors.Doyourselfafavourandattendthenextwebinar.Itwillendyourvulnerabilitytomisinformationandcanfinallystemtheflowofsomanyunnecessaryexpensesyouareprobablyalreadyincurring.There’snocost,noobligationandyou’llmakemoneyfromtheinformation.Checkwhenthenextoneisonat:www.thebusinessfirm.com.au/webinars.html

Discussion Inthisepisode,StevenMarioCavallodiscussesbusinessgrowth.Growthisabroadconceptthatencompassesmanyaspects.Growthcanrefertoanincreaseinrevenue,anincreaseindistribution,andincreaseinmarketshare,anincreaseinabrand’ssalienceandanincreaseinproductsorservices.Eachofthesecanincreaseordecreaseindependentoftheother.Furthermore,profitabilitymovesindependenttoeachofthesealso.E.g.:inashrinkingmarket(suchascassetteplayers),aunwaveringmanufacturermaybeexperiencingasustaineddeclineinsalesaspeoplestopbuyingcassettedecks–oritmightevenbeexperiencinganincreaseinsales(ascompetingmanufacturersleavethemarket)soallowingtheunwaveringfirmtoenjoyunrivalledmarketshare.Inaddition,itmayevenexperiencedgreaterprofitabilityastheprice-sensitivityofpeoplewantingcassettedecksdecreases,inthefaceoflittlechoiceintheirpurchasedecision.GrowthStrategiesIfthecompanyisnew,thenithastheadvantageofbeingabletostartwithacleanslate.Itisassumedithasnoheavyinvestmentsthatencumberitfromfreelychoosinganymarketopportunity.Inthiscase,thewordisitsoysteranditoughttoadoptthemarketingapproachtobusinessstrategy.(marketingconceptasopposedtothesalesconcept)Ifthecompanyisalreadyestablished,thenitcanpursuegrowthanumberofpossibleways(viadistribution&innovation):

• Sellitsexistingproductstomorecustomers(i.e.findnewcustomersinexistingmarketwithexistingproducts);greatermarketshare

• Sellmoreofitsexistingproductstoitsexistingcustomers(i.e.geteachofyourcurrentcustomerstobuymore–increaseshareofwallet);greatermarketpenetration

• Sellyourexistingproductsinanewmarket(i.e.sameproducts,newcustomers,differentmarket)• Developanewproducttoselltoexistingcustomers(i.e.existingmarket,existingcustomers,butnew

product);e.g.ApplecreatesnewacaseforitsiPhonethatdoessomethingthatthirdpartycasescan’t• Developnewproductstoselltonewcustomersinnewmarkets(akintoastartupbusinesswithaclean

slate)andrepresentstruediversification.E.g.whenAppleinventedtheiPhoneitsoldtoamuchlargermarketthanexpensiveMacssellto.

InnovationandEntrepreneurshipInnovationrequiresalong-termcommitmenttoinvestinaculturewherepeopleareencouragedtodoresearchandexperimentation.Acorporateenvironmentthatisconducivetocreativityandallowsnewideastodevelopisessential.

• Commitmentbytopmanagement• Commitmentofmoneyspecificallybudgeted.• Commitmentoftimescheduledforinnovation.• Acceptanceofrisk.• Toleranceofdeadendsandsomemistakes.• Availabilityofhelpandsupportforthosedoinginnovation.• Rewardforthosewhoputeffortintoideasandexperiments• Neverallowpeopletofeellikethereisnousesharingtheirideasorthereisanimositytowardthem• Flatterorganisationalstructureshelppromotethecommunicationofinnovations• Activelygarnersuggestionsandinvolvementintheinnovationprocessbyallstaff,rightdowntothe

leastseniorperson.• (storyoflightsturnedoffatroboticcarfactory…nobodyeveraskedhimbefore!)• theideaofinternalentrepreneurshipandownershipofprojects.

MentalityandAttitudeThisisabouttheorganisationalcultureoftheindividualswithinacompany.Itisthosepeoplethatcomprisethelivingsystemwithinanotherwiseinanimatestructure.Thisisstronglylinkedwiththeleadershipandtheattitudinalbehavioursandthementalstancethoseleadersconveytotheirpeople.Ifsmallmindedness,shortsightedness,ego,self-preservation,lackofambitionandavoidanceofacknowledgingthe‘elephantintheroom’areinherentinanorganisation’sleadership,thentherecouldbarelybeanyhopeorreasonforinnovationtosproutforthfromthemostcreativeandentrepreneurialthinkingpeopleinthatorganisation.Whatisrequiredisastrongexampleofaleader(s)directingalltheirpeopleintoforwardmotionandthatthenaturalexpectationisthatallareencouragedandexpectedtocontributetotheevolutionofthebusinessandthattheonlyacceptablebeliefisthat‘wewill…somehow’.Inanenvironmentwhereeveryonebelongstoateammentality,wherebothwinsandworthwhilelossesarecelebrated,assumingsoundrecruitingdeliveredagroupofgoodpeoplethatwanttocreategoodworks;thenafertilebasisexistsforsignificantinnovation.organisationthatenjoysucharichhumanassetwithaferventmentalityisabletomakethemostuseofadvancedthinkingmethodssuchaslateralthinking(byDrEdwardDeBono)and10xthinking,theincrediblehigher-orderthinkingskilldevelopedbyDrMichaelHewitt-GleesonandfamouslyusedtobuildbilliondollarcompanieslikeGoogle,GeneralElectricandtheCommonwealthBank.IwasluckyenoughtohavebreakfastwithDrMichaelHewitt-Gleesonafewdaysagoandtorecordanamazinginterviewwithhim.Youwillhearthatinterviewinthisepisode.MichaelfoundedtheinternationallyacclaimedSchoolofThinkinginMelbourneandhis10xThinkinghasbeeninstrumentalinproducingprodigiousinnovationandmetacognitioninmanyoftheworld’sforemostleadersfromcompaniessuchasIBM,Fujitsu,CocaCola,theABC,Vodafone,SaatchiandSaatchi,theUniversityofNewYorkandtheAustralianDepartmentofDefence;includingJackWelshandLarryPage.LeadershipPsychologyandChangeManagementOfcourse,almostallorganisationsdonotalreadypossesstheidealorganisationalcultureorperhapsitsleadershipstrengthcanbefurtherdevelopedsotoeclipsethemarketpotentialofitscompetitors.Itisnormalthenforcompaniestofortifytheircapacitywithsomeformofgroupdynamicaudittopinpointexactlywhereyourorganisationisweakandwhereitisstrong,inrespecttoitsabilitytodisruptitsmarketwithgame-changinginnovation.Istronglyrecommendeverylistenertovisitthewebsitegamechanging.comasthisisoneoftheworld’sbestresourcestoempoweryoutoinventthenextiPhone!Whataboutreal-worldmanagerialpractises?Herearesomeofthestrategicactionsandinstrumentsthatwillhelpyourbusinessgrow.MarketIntelligenceActivelyseekinformationthatgivesyoucluesastowhatthemarketwantsasthisiswherethecommercialopportunitieslay.

• Constantlylistentothestoriesandcomplaintsofyourfrontlinesalesstaffastheyhavetheclosestfeedbackonwhatbuyerswant.

• Surveyeverycustomerwhereverpossibletogainfreeintelligenceonhowtoimprove.• Investinformalmarketresearchtocollectbothqualitativeandquantitativedata• Testideasbydoingsmallreleasesofprototypestoassessviabilityofinnovations

Onceyouhaveconceptualisedaninnovativeideaforanewproductoranewservice;andyou’vedonesomelimitedtestingtoindicateitsviability,thenyouentertheexcitingprocessofproductdevelopment.NewProductDevelopmentOfPhysicalGoodsAndIntangibleServices.Thecoreproduct:theneedorwantthatthecustomersatisfiesbymakingthepurchase.Thecustomerisn’tbuyingadrillbit;theyarebuyingaholeinthewall.CharlesRevlonsaiditbest,“inourfactorywemakecosmetics;inourshopwesellhope”.Thetangibleproduct:thisisthecorebenefittransformedintosomethingthatbuyerscanbuy;consistingoffeatures,stylingquality,brandingandpackagingetc.AEuropeanholidaysoperatorthattakesyoungpeoplefromEnglish-speakingcountriesonorganisedcoachtourssatisfiesthosebuyers’needsforexcitement,adventure,culture,convenience,securityandthehopeofromance.

ThePartsWorthFunctionViewingproductsorservicesasabundleofbenefitsisextremelyusefulinthenewproductdevelopmentprocess.Lettakeforexample,acompanythatsellspizzas(suchasPizzaHut).Apizzahasvariousattributessuchasstyleofcrust,strengthofthecheese,varietyoftoppings,priceetc.Eachoftheseattributescanthenbegivenvariants.Forexample,thecrustattributemayhavethreevariants:pan,thinandthick.Thetoppingattributemayhavemultiplevariants/optionsavailablesuchassalami,olives,onions,anchovies,pineappleetc.Sobytakingeachattributeandlistingallthevariantsyouplantomakeavailableforit;youwillendupwithatablethatshowseachavailableitemcategorisedunderanattributeheading.Thisbecomesyournewproductorservicebrokenintoitsparts.Youthenlookatthetotalretailmarketforpizzaanddivideitintomeaningfulsegmentswherethebuyersineachsegmentdiffersignificantlyintheirtasteforpizza,frombuyersinothersegments.Here,youwouldexpectrealdifferencesinpreferencesbetweendinersthatarechildren,thoseofAngloorigin,peoplethatarevegetariansandpeoplefromItaly.Youthensurveypeoplerepresentativeofeachsegmentandaskthemtoassignaworthtoeachpar.Thatis,tosplit100pointsoveralltheattributes,wheretheyassignmorepointstoattributesthataremoreimportanttothem;i.e.40pointstocrust,10pointstocheese,45pointstotoppingand5pointstoprice.Thenforeachattribute,theysplitthepointsassignedtothatattributeamongstthevariousoptionsavailable.Forexample,the45pointsattributedtotoppingmightbethensplit10pointstosalami,3pointstoolives,12pointstoonions,13pointstoanchoviesand7pointstopineapple.Ifyousurveyastatisticallysignificantsamplesizeineachsegment,youwillessentiallyhaveablueprintofthe‘perfect’pizzatoselltoeachsegment.Performingapartsworthanalysisisacriticalpartoftheproductdevelopmentprocessasitcangiveyouanincrediblecompetitiveadvantagebyhelpingyoubringtomarkettheproductsthedifferentbuyersinthemarketactuallywant.Intoday’seconomywherecustomersexpectcustomisationandcaneasilycompareofferingsfromcompetingfirmsonafeature-by-featurebasis;todeliverextraordinarilycompellingproductsorservicesthatticktheboxesofasmanybuyersaspossible(i.e.appearidealtoeachmeaningfulsegment)thenthecommercialopportunitieswouldbefargreaterthanforthecompanythatislesscustomer-centric).MarketingEngineeringQuantitativemarketinganalysisusesmathematicalmodelstohelpdeterminethepotentialofamarketbyanalysinghowyourproposednewproductorservicewilllikelyperformcommerciallyinthatmarket,byconsideringyourinputs(e.g.productdesign,advertising,saleseffort)astheycompeteinthepresentenvironmentalconditionsandcompetitoractions;topredictlikelymarketoutputsyoucanobservesuchassaleslevels,brandawarenessandcustomerpreferences.Thepractiseofrunningsuchsimulationshelpsintheproductdevelopmentprocessasitprovidesusefulresearchtoevaluatewhetheryourplansforgrowthwillsatisfyyourbusinessobjectives,orwhethermoredevelopmentisnecessary,orindeediftheideaoughttobeabandoned.Usingthisformofmarketingintelligencebeforecommittingsignificantmoniestomanufacturing,advertisingorthebuildingofdistributors;notonlysavesenormousamountsofmoney,butinformsthedevelopmentofamuchbetterproductthatmorecloselycorrespondstobuyers’needsandassuch,dramaticallyincreasesthecommercialsuccessofthenewproductorservice.MarketResponseAtTheLevelOfTheMarketPlace.Thesefocusonaggregateresponseandtrackmarket-widequalitiessuchasbrandsalesormarketshare.OneverycommonequationusedtopredicttheresponsetoadvertisingandsellingeffortistheADBUGModelasitproducesanSshapedcurvethatsimultaneouslyadjustsforthreecommonphenomenainherentinmarkets:outputiszerowheninputiszero;diminishingreturns;andoutputislimitedtosaturationpoint.MarketResponseAtTheLevelOfTheIndividualBuyer.Marketsarecomprisedofindividualsandwecananalysetheresponsebehavioursofthoseindividuals.Theinformationcanbeuseddirectlytodescribespecificsegments,oritcanbeaggregatedtorepresentthemarketasawhole.Examplesofsourcesofthisinformationisscannerdatafromsupermarkets(usedtotrackindividualswithinadatabase)anddirectmarketingpurchasesfromindividualsthatrespondstoonlineortraditionalmailcampaigns.Thestatisticalmethodsusedtocaptureindividualresponsesreturninformationaboutpurchaseprobability.Purchaseprobabilityattheindividuallevelisequivalenttomarketshareatthemarketlevel.Mathematicalmodelsthatmeasurepurchaseprobabilityfeatureadenominatorthatrepresentsallthecompetingbrandsinamarketthatthebuyeriswillingtoconsiderateachpurchasedecision.Thisisnotallthebrandsinthemarket,justthoseinthebuyer’sconsiderationset.

MultinomialLogitModelMarketersoftenuseanequationcalledtheMultinomialLogitModelasitpredictstheprobabilityofabuyerchoosingyourbrand(whereitisamongstthebuyer’sconsiderationset).Providingyouareabletodetermineanumberoffactorssuchastheattractivenessofyourproduct,anindividual’sevaluationofatleastoneattribute(e.g.quality)againstthecompetitors’andtheweightingofimportancethebuyerplacesonthatattribute;youcanusethisMultinomialLogitModeltoevaluatemanydifferentattributes(quality,price,availability,featuresetc.)topredicthowfavourablyyourproduct/brandwillbeconsideredatthetimeofpurchasedecision.E.g.consideralocalcouncilormainstreettradersorganisationthatwishestoimprovethenumberofshoppersvisitingtheirhighstreetprecinctasopposedtocompetingprecinctsinthesamecity.Attributesimportantherewouldinclude:varietyofshops,easeofparking,proximitytopublictransport,choiceofcuisines,distance,levelandqualityofadvertising,internationalbrands,largeattractorssuchassupermarketsorcinemas.PerceptualMapsTheseareintuitivetoolsusedtohelpanorganisationinitspositioningstrategyforanynewproductorservice.Theyaregraphicalrepresentationsofcompetingattributesofaproductorservice,plottedontwoaxesinaEuclideanspace.Inotherwords,oneaxisrepresentstheoppositesofoneattribute;andtheothertheoppositeofanotherattributethatisassociatedtothefirstattribute.Forexample,considertheperceptualmapforaproposednewbeer.Ifyouimagineagraphdrawnwheretheverticalaxisindicateswhetherabeerisconsidered‘light’or‘heavy’(whereheavyisonthetopandlightonthebottom);andthehorizontalaxisrepresentspricewhere‘budget’isontheleftand‘premium’ontheright.Whatwehaveisaspacewithfourquadrants:topleftrepresents“budgetandheavy”whichmayappealtobluecollarbuyers;toprightrepresents“premiumandheavy”whichmaybepopularwithmenandconsumedwhendiningout;bottomleftrepresents“budgetandlight”andmightcorrespondtocheaporpalebeers;andbottomrightrepresents“premiumandlight”whicharepopularwithwomenanddieters.Withineachquadrantyouthenplaceeverycompetingbrandaccordingtohowitisperceivedinthemarket.Yourepeatthisexercisebydrawingmoreandmoremaps,eachtimeusingdifferentattributestotheaxesandthenassesswhichquadrantthebestcommercialopportunitylays.ForecastingSalesofNewProductsOncethebestpossibleproductisdevelopedandathoroughunderstandingofthecostsofproducingthatproductorserviceisreached,thenacompanynextneedsasaccurateaforecastofsalesascanbedetermined.Anyattainmentofshort-termprofitsandlong-termplanningrestsontheabilityofthatnewofferingtorealisesalesrevenue.OneofthebesttoolsmarketingsciencetopredictthesalesofnewproductsistheBassModelandthisistheequationtaughtinsomeofthebestUniversitiesoftheworldwithintheBachelormarketingdegree.ItwasthesuperbworkofProfessorFrankBassintheareaofproductandinnovationdiffusionthatleadtothedifferentialequationcalledtheBassDiffusionModelthatmathematicallypredictswithahighdegreeofaccuracythesalesofanewproductorserviceinapopulation.Itworksjustaswellforlargebusinesses(i.e.MicrosoftfamouslyusedthisformulawhenaccuratelyforecastingsalesofWindowsXPoverthepreviousgenerationofWindows)anditworksjustaswellforsmallbusinesses.Themodelclassifiesadoptersaseitherinnovatorsorimitatorsandithasthepowertopredictboththeamountofsalesovertimeandwhenthepeakofsaleswilloccur.Anumberofiterationsofthemodelhavebeendeveloped,butthemostwidelyusedisknownastheGeneralisedBassModelthatincorporatestheeffectsofmarketingmixvariables(suchasadvertisingandprice)onthelikelihoodofadoption.SeeShowNotesSeeshownotesfortheactualoriginalBassModelequationandexplanationofthevariables,plusresourcesthatdirectyoutowebsitethatallowyoutoinputyourownvariablesintoacalculatorandreturnyourresults,plustheshownotesalsodirectyoutospreadsheetsyoucandownloadthatallowyoutocalculateyourownanswers).

BassDifferentialModel L(t)=p+q/NxN(t) Where: N(t) = thenumberofcustomerswhohavealreadyadoptedtheinnovationintimet;

N= aparameterrepresentingthetotalnumberofcustomersintheadoptingtarget

segment,allofwhomwilleventuallyadopttheproduct’; P = coefficientofinnovation(orcoefficientofexternalinfluence);and Q = coefficientofimitation(orcoefficientofinternalinfluence).

SeeAdditionalResourcesBassModels:http://bassbasement.org/BassModel/WhichBassModelEquation.aspxOnlineBassCalculator:http://bassbasement.org/BassModel/Calculator.aspx/BassModelasExcelsheet:http://bassbasement.org/BassModel/VBBassModel.aspx/InformationaboutProfessorFrankBass:http://bassbasement.org/FrankMBass/Default.aspxEhrenbergBassInstitute:https://www.marketingscience.infoDrMichaelHewittson-Gleeson(inventorof10xThinking):www.schoolofthinking.orgYourGameChangingSkill:www.gamechanging.com

Interview

In this episode,we have the privilege to sitwith DrMichael Hewitt-Gleeson, the inventor of and theworld’sforemost authority and teacher on 10x Thinking. His area of specialisation is inmetacognition (which is thedevelopmentofhigherorderthinkingskills)andistheauthoroftheground-breakingbook,“The10xMemplex:MultiplyYourBusinessByTen” (PrenticeHall, 2000).He is alsooneof theworld’smost respected leaders inneuroplasticity, having written the bestselling course book, “Software For Your Brain” (1989) ISBN09473511088.DrHewittson-Gleeson’sFirstLawofThinkingstates:thecurrentviewofthesituation(cvs)canneverbeequaltothebetterviewofthesituation(bvs).0rcvs≠bvs.And,cvsx10=bvs.He is aworld authority on lateral thinking, havingwritten four books on the subject and is one of very fewpeoplewhowhenyoung,receiveddirectpersonalexaminationfromProfessorGeorgeGallupfromPrinceton,thefounderoftheGallopPollandfatherofmodernsocial,politicalandeconomicresearch.Asahighlysoughtafterinternationalconsultant,hecoachestheleadersofsomeoftheworldslargestcompanies,includingBMW,theUnitedNations,theWhiteHouse,theAustralianDefenceForce,IBM,GeneralElectric,AMP,Telstra,Vodafone,SaatchiandSaatchi,Fujitsuandmanymore.All listenersarewelcometo(andencouraged)tovisitwww.schoolofthinking.organdapplytoreceivepersonallessonsfromDrMichaelHewittson-Gleeson,intheformofadailyemailthatcomesatnocost.Asanintellectualphilanthropist, his ambition is to equip all people and children (in Australia, overseas and particularly indevelopingcountries)withthementaltoolstothinkathigherlevels.One of the most profound aspects of developing your thinking is that ALL aspects of your life improve, asthinking directs everything you do. As soon as you think better, you automatically become a better businessperson,abetterparent,abetterfriend,abetterlover,abetternegotiator,abetterleader,abetter…everything.In this interview,DrHewittson-Gleeson shares a greatdeal abouthimself, about thinking as a skill, about thebenefitsonemightexpectfrom10xthinkingandpracticaladviceonhowtobecomea10xthinker.

Audience Question

Today’s question comes from Maria, who is a consulting accountant in Scotland specialising in developingaccuratecostingmodelsformanufacturingbusinessestoproperlyunderstandhowandwhereintheirprocessestheyincurcosts.Sheaskswhatherpromotionalsocialstrategyshouldbe.(LinkedIn,Webinars,IndustryGroups)ListentoEpisode101tohearSteven’sadvicetoher,ashisanswerhasequalapplicabilitytomanyorganisationsthatselltobusinesses.ThisisthefavouritepartoftheshowforhostStevenCavallobecausehegetstodirectlyhelprealpeoplewithanactual problem they are having in the areas of business development,marketing, sales or fundraising. Stevenfeaturesoneoftherecordedquestionssentinbylisteners,andplaysbackthatrecordingonair,alongwithhiscommentary.Tosubmitaquestion,pleaserecordyourquestionasanmp3(maximumfilesize10Mb)thatisnolongerthan60secondsandemailitto:answer@thebusinessfirm.com.auWhilewe canaddressyour issueandprovide somevaluable insight forquestions featured;of course,we canonlygointobriefdetailintheminutesavailableinthepodcast,soweencouragelistenerswhowantmoreformaladvice(regardlessofwhethertheirquestionisfeatured)tooutlinetheirspecificproblem/opportunityandemailitdirectlytoconsulting@thebusinessfirm.com.auandyouwillgetareplywithin24hours.

Resources

Herearesomeofthelinksandinformationreferredtointhisepisode.BassModels:http://bassbasement.org/BassModel/WhichBassModelEquation.aspxOnlineBassCalculator:http://bassbasement.org/BassModel/Calculator.aspx/BassModelasExcelsheet:http://bassbasement.org/BassModel/VBBassModel.aspx/InformationaboutProfessorFrankBass:http://bassbasement.org/FrankMBass/Default.aspxEhrenbergBassInstitute:https://www.marketingscience.infoDrMichaelHewittson-Gleeson(inventorof10xThinking):www.schoolofthinking.orgDrasticallyImproveYourGameChangingCapacity:www.gamechanging.com

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www.thebusinessfirm.com.au