Page 143 - Marketing Management

120 PART 2 CAPTURING MARKETING INSIGHTS

Prototyping has also contributed to IDEO’s success. It warm, comfortable, and inviting. The hotel added ad-
takes place throughout the design process so individuals vanced technology options throughout its lobbies and
can test out, experience, and improve upon each level of lounges, such as flat-screen TVs and free Wi-Fi. Marriott
development. IDEO encourages its clients, even senior ex- converted the breakfast buffets to 24/7 coffee-shop-style
ecutives, to participate in the research so they get a sense cafés, where guests can quickly grab a gourmet coffee
of the actual consumer experience with their product or drink and healthy bite to eat any time. And Courtyard cre-
service. AT&T executives, for example, were sent on ated new outdoor hangout spots with sound speakers and
a scavenger hunt designed to test the company’s location fire pits. After the renovations, Courtyard by Marriott
software for its mMode mobile phones. The executives changed its tagline to “Courtyard. It’s a New Stay.”
soon realized the software was not user-friendly. One IDEO’s novel consumer-led approach to design has led
resorted to calling his wife so she could use Google to help to countless success stories and awards for its clients and
him find an item on the list. IDEO helped AT&T redesign for the firm itself. The most important result for IDEO’s de-
the interface to be more intuitive for the average user. signs is that they solve a usability problem for clients. The
IDEO helped apparel-maker Warnaco improve sales company goes “broad and deep” to achieve this goal. Since
by having its designers shadow eight women as they its founding, it has been issued over 1,000 patents, and in
shopped for lingerie. The “shop-alongs” revealed that 2008 the company generated $120 million in revenues.
most consumers had a negative buying experience. They
had difficulty locating the lingerie section in the department
Questions
store and finding the right size in the overcrowded display,
and they felt the fitting rooms were too small. IDEO devel- 1. Why has IDEO been so successful? What is the most
oped a new six-stage merchandising environment that in- difficult challenge it faces in conducting its research
cluded larger fitting rooms, “concierges” to give shoppers and designing its products?
information, and improved displays. Warnaco imple-
2. In the end, IDEO creates great solutions for companies
mented this plan with the help of the department stores.
that then receive all the credit. Should IDEO try to cre-
In another example, Marriott hired IDEO to help make
ate more brand awareness for itself? Why or why not?
its Courtyard by Marriott hotels more appealing to younger
guests. IDEO conducted interviews and observed guests in
Sources: Lisa Chamberlain, “Going off the Beaten Path for New Design Ideas,” New York Times,
the hotel’s lounges, lobbies, and restaurants. Its research
March 12, 2006; Chris Taylor, “School of Bright Ideas,” Time, March 6, 2005, p. A8; Scott
revealed that younger guests were turned off by the lack of Morrison, “Sharp Focus Gives Design Group the Edge,” Financial Times, February 17, 2005, p. 8;
activity in the hotel’s public places, the lack of technology Bruce Nussbaum, “The Power of Design,” BusinessWeek, May 17, 2004, p. 86; Teressa Iezzi,
“Innovate, But Do It for Consumers,” Advertising Age, September 11, 2006; Barbara De Lollis,
offered, and the poor food options. As a result, Courtyard
“Marriott Perks Up Courtyard with Edgier, More Social Style,” USA Today, April 1, 2008; Tim
by Marriott changed its furniture and decor to be more Brown, “Change by Design,” BusinessWeek, October 5, 2009, pp. 54–56.

Marketing Excellence must be a better way to automate his bill-paying process. For
over 25 years, Intuit’s mission has been to “revolutionize peo-
>>Intuit ple’s lives by solving their important business and financial
management problems.”
Intuit develops and sells Intuit launched its first product, Quicken, in 1984 and
financial and tax solution struggled to survive during those first years. After some
software for consumers favorable reviews in the trade journals and an effective
and small to medium- print advertising campaign, the company got its first
sized businesses. The break. By 1988, Quicken was the best-selling finance
company was founded in product on the market. In 1992, the company launched
1983 by a former Procter QuickBooks, a bookkeeping and payroll software product
& Gamble employee, for small businesses, and went public the following year.
Scott Cook, and a Stan- Intuit grew quickly in the early 1990s, thanks to the
ford University program- success of Quicken, QuickBooks, and TurboTax, a tax
mer, Tom Proulx, after preparation software program. Intuit’s products did some-
Cook realized there thing for small businesses that more complicated