- [Instructor] This is the video lecture for Products,
and it's part two.
Next, I'd like to talk to you about MVP,
which stands for minimum viable product.
So it is the version of a new product
that will allow you to do two things,
learn and measure what works,
learn about your product,
get feedback from your customers
with the least amount of time and money
and effort put forth.
Here are two links to websites
that tell you more about MVP.
So as is suggested here,
MVP should be an iterative cycle.
So you try something out,
you offer it,
you measure it,
you see how it does,
you learn from that,
and then you rebuild,
you re-innovate,
you put your learnings into account
and re-offer
and around and round that you go.
So an example of this might be,
if you have a food business,
let's say that you want to make Thai food
or something like that.
So rather than invest in a huge
paying rent and buying an oven and a stove top
and a hood,
you might want at first to just try to cater an event,
maybe with some friends,
make a few dishes,
see how they like it and then measure.
"What did you like?
How spicy was it?
Was it good?
What was your favorite?
Would you buy this?"
And then take that feedback
and then maybe once you've sort of perfected that
move to a food truck.
So here, you're mobile,
you have less overhead,
continue to learn,
"What did you like,
what did you not like,"
et cetera.
And then finally,
once you feel like you really have a viable product
that you can scale up with,
then rent restaurant space.
So again, these are other words.
So a minimum viable product
is the smallest thing that you can deliver
that will create value,
and it also gets some of the bonus back.
So you not only get information back,
hopefully, you're getting a little bit of money back too.
And it's basically, the idea of start small,
start lean, and then build from there as you learn more.
So MVP maximizes revenue,
at least for that small item,
as well as really maximizing information
while minimizing cost, effort and time.
And it should also very much minimize your risk.
The next topic I would like to cover is the diffusion model.
So this is the idea.
This was developed by Everett Rogers in the early 1960s.
And he noticed that there was a pattern
of how farmers adopt new technologies.
And here in this graph,
you can think about time being on the X axis
and Y being the
when folks adopt,
how many people are adopting
or sort of who adopts when.
So you can see at the very far left
that there's a few innovators who try it,
then you get early adopters.
And then in the middle of this bell curve
are the early and late majority
and then at the end are the laggards,
those who are the very last who adopt it.
Now he developed it for adoption of new technologies,
but it's also been found to be very effective
in modeling how consumers adopt and buy new products.
So in this model,
the innovation are those that really like to take risks.
They like new things.
They wanna try new things.
They will also sometimes ignore norms.
So in fashion,
they'll sort of be a trendsetter,
try things that really haven't been tried yet,
ignore the fashion norms of the time
and do something that might be seen as more outrageous, say.
The early adopters then are the ones
that once the innovators did,
they see it, they say,
"This seems cool,"
and are among the next wave to do it.
And they very often become the opinion leaders.
And they sort of help to set the stage for further adoption.
So we talked about opinion leaders like like food critics,
technology critics, bloggers,
or just friends of yours who are the first ones
to try new things.
So they will often like help to promote it.
The majority then, the next two,
the two biggest parts of the bell curve,
sort of are the ones that only start to adopt it
as it becomes more mainstream.
And especially the early majority
tend to be a little bit cautious,
but they can really help to legitimize it,
that once it starts to be seen, norms change
It becomes the norm
and they help to really help it go mainstream.
The late majority are those who tend to be skeptical.
They're on that sort of the downside of the curve.
They really wait until it becomes like truly established.
like most people are doing this
and in many cases sort of do it
only as social pressure dictates.
And finally,
there's the laggards who are much like the late majority,
only even more so.
They're very suspicious of new things.
They're sort of set in their ways.
In many cases, they are sort of forced to adopt.
So I can think of a case.
I was a laggard with smartphones
and still had a flip phone until just,
I don't know, four years ago or so.
And basically, like so many of my friends had iPhones
and they worked so much better,
I still had to ask for directions
and like print those out.
And finally, I felt like I'm so far behind the curve,
I can't hold out anymore,
and I got a smartphone.
And in many cases as well,
these are folks from the lowest socioeconomic status.
So they can't afford maybe to have the newest things.
Finally, I wanna talk to you about the product life cycle.
And this is the idea
that just as humans go through life cycles
and all biological organisms,
that products do too,
and they tend to follow a fairly predictable pattern,
where they're introduced,
they go through some growth,
they have maturity where they're well known
and kind of mainstream,
and then a decline when they sort of go out of fashion
and are replaced by a more innovative,
a newer product that then starts at the introduction phase
and the sale start to decline.
So I'll just let you read these.
Please take some time to read these,
but this is how the four P's,
they're calling it distribution instead of place,
but I'll go through each of these slides.
I'll leave them here and let you read them.
And this is what you do for each of the four P's
for each stage of the product life cycle.
Here's the one for growth.
Here's the one for maturity.
Feel free to pause and read these.
And finally, here's the one for decline.
So here is really where you have to re-innovate.
So you have to add new features.
You may wish to just sell it to a loyal niche,
or it may be a case where you stop making it,
you liquidate inventory or find another firm
that are willing to sell it.
So here's a link to a video
that tells more about this.
The guy in this video has a very sexy, British accent
and much better hair than me.
So hopefully, you'll enjoy watching him more
than you've enjoyed this video.
And here, you can see the last two graphs
sort of laid on top of each other,
and it's sort of talks about the product life cycle
laid over the diffusion of innovation.
So you can see that these sort of mirror each other.
The top is sort of from the supply side
and the bottom is more from the demand side.
So this is what we did.
Hopefully, these all make sense.
Here is your homework,
and hopefully, that makes sense.
Feel free to pause it.
And I will introduce this when we discuss it.
This is the end of part two.
This is the last part.
So please do the assessment,
and post it before class.
Thanks.