The Problem of Human Emotion

I'm deeply concerned at the number of instances in which the notion of "emotional branding" is being used to promulgate the most gorgeously idiotic notions ... and, in turn, to propose the most gorgeously idiotic practices.

To be clear, I don't dismiss the concept of emotion as a critical factor in decision-making and acknowledge that there is a convincing argument that has a legitimate scientific basis that consumers behavior is driven by emotional impulse: that we feel first and think later, and that consumers often apply reason subjectively to justify an initial emotional reaction.

But too often, I've seen emotion used as a basis for some general observation about consumer behavior without any plausible connection to a valid scientific basis, and my sense is that it is in danger of becoming a form of mysticism, with emotions being portrayed as an unknown and unknowable force that cannot be questioned or considered logically, and that anyone who claims to be attuned to emotion should be granted automatic credibility.

This is likely a danger faced by any phenomenon that is only partially understood. Consider the number of medical treatments that used electricity or radiation in ways that we later came to recognize as completely invalid. The practitioners at the time had some shred of understanding of what these phenomena were and did, and invented devices that ultimately did more harm than good to the patients who had the vague sense that there was validity to an untested hypothesis or a phenomenon that was barely understood.

It's my sense that the same is true of emotional branding today; and while I'm confident that history will sort out the quacks from the legitimate practitioners, those of us who live and act in the present day do not have the luxury of time, and should be cautions about accepting (and even more reluctant at the prospect of making) half-witted pronouncements.

And half-wittedness is exactly the issue: a person who is completely ignorant does less harm than one who understands a little, just enough to be dangerous, and proceeds with boldness and confidence in the wrong direction. Given that" vague and little" describes the present state of knowledge about emotion, a bit of reluctance and skepticism is well in order.

Phases of Innovation

I've been struck by a notion, which probably needs much more refinement, that the nature or character of "innovation" is heavily influenced by environmental factors - it's not quite as simple as the level of economic development or the phases in the product lifecycle. Though it's similar in a number of ways, it's different enough that the character of innovation can't be neatly ascribed to those existing theories.

Discovery Phase

During the earliest phases of the product lifecycle, development and introduction, innovation is largely a matter of invention: an entirely new product is invented, which was never before in existence, and it's also discovered that the product serves some human need (which is important, as many of the "discoveries" of science have little application to human needs, at least initially).

The "discovery" phase also carries over to the second phase of the product lifecycle, introduction, in the sense that , while the supplier has discovered a new product by a process of invention, the buyer must also discover it - traditionally, by the supplier communicating information to the market to advertise the product, but more recently by word-of-mouth.

In this phase, innovation is characterized by invention and application: a product is created, and it is matched with a consumer need.

Manufacturing Phase

The manufacturing phase of innovation occurs during the introduction and growth periods of the product lifecycle, during which time innovation is geared toward developing methods of producing a product (or a service) in sufficient quantity to satisfy market demand.

The transition from discovery to manufacturing is a vulnerable period, during which a company that discovers a product seeks to bring it to the market before its competitors. My sense is that there are many instances in which one company has invented something is beaten to market by another, especially in the technology industry.

In this phase, innovation is characterized by entrepreneurship: the product must be produced and delivered to the consumer.

Efficiency Phase

The efficiency phase of innovation may occur during the last three phases of the product lifecycle: growth, maturity, and decline. It's generally characterized by multiple producers entering the market, competing largely on the basis of price.

Competition in this phase is for share of market: efficiency can take the form of the least costly manufacturing process (by cutting costs, price can be lowered to gain competitive advantage) or the most productive manufacturing process (being able to supply in quantity, such that customers who want the product immediately can buy from you rather than waiting for a competitor to catch up to back orders).

As such, innovation in this phase generally consists of cost reduction and supply-chain management, with the goal of gaining share of market.

Service Phase

The service phase may, in some products, be substituted for the efficiency phase, though for most products that come to mind, it generally occurs afterward, when firms are more or less equal in their ability to produce a good cheaply and in sufficient quantity and seek to differentiate themselves from competitors in ways that customers value.

Customer preference is of primary importance: given that the good is readily available from multiple sources, and there is little differentiation in product price, competitive advantage is won by the firm that best satisfies customer needs in terms that have less to do with the physical properties of the product or its price, but have to do with the success of the product in satisfying consumer needs other than those directly addressed by the product itself (core value is not sacrificed, but augmented).

As such, innovation in this phase consists of quality improvement and customer relationship management, with a goal of gaining customer loyalty and improving share of wallet.

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I'll concede that this is very early thinking, and as such may be a bit half-baked and ill-defined. I expect I'll return to it later for more detailed consideration - just wanted to jot it down in this notebook for now.