|If Steve Jobs (innovation)|
and Donald Trump (ROI)
had a baby, this is what it would
look like. Seriously.
Ideally, every concept or new product innovation we test would have a substantive ROI estimate before it’s tested. At P&G years ago, we wouldn’t test a concept that didn’t have a creative brief already written by the advertising agency. Each concept needed to be translatable into advertising or we didn’t test it. ROI estimation is similar. There should be baseline assumptions that tie purchase interest, frequency and other measures to margin expectations used to set pricing. Pricing should be a part of every concept testing if you’re asking purchase interest anyway, so taking a swag shouldn’t be so hard. With this in hand, the “tension” between Innovation and ROI becomes a motivator for diligence in creativity. And creativity without discipline is child’s play, not innovation.
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Today's guest post is from Kelley Styring. Styring is principal of InsightFarm Inc. a market research and consumer strategy consulting firm. She has led insights for Procter & Gamble, Pepsico, Black & Decker and NASA prior to founding her own firm in 2003. Kelley is a published author and has been featured in USA Today, ABC News, Good Morning America, Brandweek, Fortune, Quirk's Marketing Research and The Market Research Daily Report from RFL Online. She will be live blogging from The Market Research Event 2012 this November 12-14 in Boca Raton, Florida. If you'd like to join her, register today and mention code TMRE12BLOG to save 15% off the standard rate!