June 17, 2024

Idea Generation Marketing Definition

Idea generation is the first stage of the new-product development process, in which product ideas are sought from various sources (e.g., R&D, market research, customers). This stage is often called concept generation rather than idea generation because the new product is only a concept at this time.

There are four primary stages to idea generation: problem recognition, information search, alternative evaluation, and decision-making. The first step in this process is problem recognition, which is “the consumer’s perception that a difference exists between his or her current state and some desired state” (Kotler et al., 2009). Next, to generate ideas, you must create a problem that needs a solution; without this, you will have no new product.

The second step is information search, “the process by which the consumer is believed to search for information about the problem and possible solutions” (Kotler et al., 2009). This can be done in a number of ways, but the most common is through word-of-mouth, internet research, or visiting a store.

When it is related to internet search, that’s where SEO (search engine optimization) has its most significant benefit. SEO is concerned with where your product or service appears in an internet search through Google, for example. The closer to the top or first page of results, the more likely someone is to find and use your product.

The third step is alternative evaluation, “the process by which the consumer evaluates the different options and chooses the best one” (Kotler et al., 2009). The consumers will evaluate the pros and cons of each option and make a decision based on what is best for them.

The fourth and final step is decision-making; this is “the process by which the consumer makes a purchase decision” (Kotler et al., 2009). The consumer will take all of the information they have gathered and make a final decision on which product to purchase.

There are a few things to keep in mind when going through the process of idea-generation marketing. The first is that you must have a clear understanding of your audience. Whom are you targeting? What are their needs and wants? What makes them “tick”? Once you have a clear understanding of your audience, you can begin to generate ideas that will appeal to them.

This brings to mind for me why it is essential to understand and define the generational breakdown in order to target your marketing campaigns effectively.

What are the 5 generations of marketing?

According to the definition from research marketers, there are currently five generations, and they are:

  • Silent Generation. Years born: Before 1945
  • Baby Boomers. Years born: 1946-1964
  • Generation X. Years born: 1965-1976
  • Millennials. Years born: 1977-1995
  • Generation Z. Years born: 1996-present

Understanding these generational differences is crucial because they will impact how you generate ideas for marketing campaigns. For example, SilentGeneration will be more resistant to change, so you’ll need to be more persuasive in your marketing.

Baby Boomers are more likely to respond to nostalgic or sentimental campaigns, while Generation X is looking for value and efficiency. Millennials are the most tech-savvy generation and are significantly influenced by social media, so your ideas should reflect that. And finally, Generation Z is the most diverse generation and is very open to new experiences, so your campaigns should be creative and outside the box.

Idea generation marketing is all about understanding your audience and coming up with creative ideas that will appeal to them. It’s a process that takes time, but it’s worth it in the end.

What are the 5 groups of market segmentation?

Five ways to segment markets include the following:

  1. Demographic
  2. Psychographic
  3. Behavioral
  4. Geographic
  5. Firmographic segmentation

The objective of market segmentation—the act of dividing a target market into more diminutive, defined subgroups of consumers with shared qualities—is to distinguish the subgroups with the highest potential for profit or growth. Segmentation is a critical part of any competent marketing campaign. Still, observations from segment analysis are also generally used to detect niche opportunities and provide information for pricing, distribution, and new product development decisions.


Market segmentation makes your marketing campaigns more personal and shows you what products to develop, which distribution channels are most effective, and how much to charge.

Prominent market researchers have argued that segmentation based on consumer buying patterns is far more accurate at predicting future purchasing behavior than demographics like age, gender, and income.

A 2006 Bain survey reported that 81% of CEOs considered segmentation a critical tool—but fewer than 25% believed that their companies used segmentation effectively.

Examples of market segmentation companies

Volkswagen. The Volkswagen group is an excellent example of how market segmentation allows a brand to appeal to very different groups of people. The German carmaker sells its cars under several other brands, each with a distinct target market.

For example, Audi is aimed at luxury car buyers, while VW’s budget-friendly Skoda is aimed at value-conscious consumers.

Nike. Nike is another company that does an excellent job of market segmentation. The athletic apparel and footwear brand caters to athletes of all levels, from casual runners to professional athletes. Nike also has different lines of products for various sports, such as basketball, tennis, and running.

Coca-Cola. Few brands are as effective as Coca-Cola when it comes to an understanding a broad customer base. The soda giant has a drink for everyone, from its flagship Coke to its diet and zero-calorie options. Coca-Cola also sells juices, teas, coffees, and even water.

Kellogg’s. Kellogg’s is another company that has a segment for everyone. The breakfast food maker offers cereals for kids, adults, and even those with special dietary needs, such as gluten-free and vegan options.

How do you generate ideas for market segmentation?

As a recap in a consolidated list, here are a few ways to generate ideas for market segmentation:

  1. Look at your existing customer base.
  2. Analyze your competition.
  3. Use market research surveys.
  4. Use focus groups or interviews.
  5. Conduct a SWOT analysis.
  6. Use demographic data.
  7. Consider behavior patterns.
  8. Look at psychographic factors.
Idea generation marketing definition

In conclusion, idea generation is an essential marketing tool that can help you better understand your audience and come up with creative ideas that will appeal to them. It’s a process that takes time, but it’s worth it in the end. Use the tips above to get started generating ideas for your next marketing campaign.

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