Module 5 - Creative and Business Idea - General

Republic of the Philippines
PHILIPPINE STATE COLLEGE OF AERONAUTICS

INSTITUTE OF LIBERAL ARTS AND SCIENCES
Piccio Garden, Villamor, Pasay City
T E he ntrepreneurial M ind
Creativity and the Business Idea
Learning Modules
2st Semester AY 2021-2022
1 |C r e a t i v i t y a n d T h e B u s i n e s s I d e a - E n t r e p r e n e u r i a l M I n d
MODULE LEARNING OUTCOMES:
1. Develop creativity and problem-solving as entrepreneurial skills.

2. Utilize methods for generating new ideas for developing and creating
creative solutions to problems.
TOPIC LEARNING OUTCOMES:
1. Identify the different sources of new ideas.

2. Apply the different methods for generating new ideas in developing
innovative products/services.
3. Utilize various creative problem-solving techniques.
TABLE OF CONTENTS:
TITLE PAGE TIME
ALLOTMENT
Introduction 4 5 mins.
Sources of New Idea 5-8 10 mins.
Methods of Generating New Idea 9-12 10 mins.
Creative Problem Solving 12-17 30 mins.
Product and Development Processes/Product 17-18 3 mins
Define
Five Levels of a Product 18-21 10 mins.
Product Mix 21-22 5 mins
Industrial Products/Business to Business 22-23 10 mins.
Products
Product Classifications 23 5 mins.
Brand Define 24 10 mins.
Brand Development Processes 25 8 mins.
Product Planning Development keywords 27-29 10 mins.
Summary 29 3 mins.
Assessment 30 1.5 hrs.
Rubrics/References 32 -
Introduction:
There will be times when your mind simply goes blank—not a creative
thought to be found. Even experts lose their creative genius at times. As
your age matures, your creativity declines, unless you proactively nurture it
and strive to be more creative on a daily basis.
When your creativity seems to utterly disappear, it could be from an

accumulation of stress or from being incredibly busy. You may be trying to
solve a problem and unable to visualize a good solution. When momentarily
stumped, it can be very difficult to pull yourself out and start getting more
creative again.
There are many ways you can help yourself to come up with more creative
ideas and eventually solve your problem, but sometimes you have to force
yourself to discover new and unique ways to get your creativity back. As an
entrepreneur, if you hope to become successful in the world of business,
there's no other option.
BY: RYAN ROBINSON
Sources of new Ideas

Idea: A thought or suggestion as
to a possible course of action.
Some of the more frequently used
sources of ideas for entrepreneurs
include?
• Consumers
• Existing product & services

• Distribution channels
• The federal government &
• Research & development
Consumers:
• Entrepreneurs should
continually pay close attention to
customers; this attention can take
the form of informally monitoring
potential ideas & needs or formally
arranging for consumers to have
an opportunity to express their
opinions.
• New product or service idea
may come from customer reaction
to the present product and from
expected product idea. • Care
needs to be taken to ensure that
the idea or need represents a large enough market to support a new
venture.
Existing products & services:

• Entrepreneurs should also
establish a formal method for
monitoring & evaluating
competitive products & services
on the markets.
• This may result in a new
product or service that has more
market appeal & better sales &
profit.
Distribution channel:
• Members of the
distribution channels are
also excellent sources for
new ideas because of
their familiarity with needs
of the market.
• They suggest new
products & also helps
entrepreneurs in
marketing their newly
developed products.
Federal
government:
• Federal
government can be a
source of new
product ideas in two
ways:
First:
The files of the
patent Office contain
numerous new
product possibilities,
although the patents
themselves may not be feasible they can frequently suggest other more
marketable products ideas.
Second:
• New product idea can

come in response to
government regulations.
• E.g. Occupational
Safety & Health Act
mandated that first aid
kits be available in
business establishments
employing more than
three people and must
contain specific items
that varied according to the company. R&H Safety sales company was
developing such kits that allowed companies to comply with the standards
of the act.
Research & development:

• The largest source of new ideas is the entrepreneur’s own R&D efforts. •
One research scientist in Fortune 500 company developed a new plastic
resin that became the basis of a new product, but the company was not
interested.
• He started making a plastic molded modular cup pallet as a new venture
and build a company Arnolite pallet company.
Methods of Generating New Ideas

• Even with such a
wide variety of
sources available,
coming up with an
idea to serve as the
basis for a new
venture can still be
problematic. The
entrepreneur can
use several methods
to help generate &
test new ideas such
as:
Ø Focus groups
Ø Brainstorming
Ø Brain writing &
Ø Problem Inventory Analysis
Focus groups: groups of
individuals providing
information in a structured
format.
• For generating new ideas,
the focus group is an excellent
method for initially screening
ideas & concepts.
• The group of 8-14 participants is stimulated by comments from each other

in creatively conceptualizing & developing a new product idea to fill a
market need.
• E.g., one company interested in the women’s slipper market received its
new product concept for a “warm & comfortable slipper that fits like an old
shoe” from a focus group of 12 women from various socioeconomic
backgrounds in the Boston area.
Brainstorming: a group
method for obtaining new
ideas & solutions.
• It is based on the fact
that people can be
stimulated to greater
creativity by meeting with
others and participating in
organized group
experiences.
• The characteristics of
this method are keeping
criticism away,
freewheeling of idea, high
quantity of ideas,
combinations, and improvements of ideas. Such type of session should be
fun with no scope for domination and inhibition. Brainstorming has a
greater probability of success when the effort focuses on specific product
or market area.
Brain writing: (created by

Bend Rohr Bach in 1960 &
named Method 635)
• It is the written form of
brainstorming.
• Brain writing is a silent,
written generation of ideas
by a group of people.
• The participants write their ideas on special forms or cards that
circulate within the group, that consists of usually 6 members.
• Each group
member generates
& Writes down three
ideas during a 5
minutes period, until
each form has
passed all
participants. • The
leader monitors the
time interval & can
reduce or lengthen
the time given to
participants
according to the need
of the group.
Problem inventory & analysis:

A method for obtaining new
ideas & solutions by focusing on
problems.
• This analysis uses
individuals in a manner that is
analogous to focus groups to
generate new
product ideas. However, instead
of generating new ideas
themselves, the consumers are
provided with list of problems
and then asked to have
discussion over it and it
ultimately results in an entirely
new product idea.
Creative Problem Solving
• Creativity is the act of turning new and imaginative ideas into reality & is
an important attribute of a successful entrepreneur.
• While creative problem solving is the method for obtaining new ideas
focusing on the parameters.
• Creativity tends to decline with age, education, lack of use, and
bureaucracy. • Hidden creative potential can be stifled by perceptual,
cultural, and organizational factors.
• Creativity can be unlocked by using any of the creative problem- solving
techniques.
Creative problem-solving techniques 1.
Brainstorming:
Ø This is the first technique & is probably the most well-known &
widely used for both creative problems solving & idea generations.
Ø A good brainstorming session starts with a problem statement
that is neither to broad (which would diversify ideas & nothing specific
would emerge) nor too narrow (which would tend to confine
responses).
Ø Once the problem statement is prepared, 6-12 individuals are
selected to participate.
Ø To avoid inhibiting responses no group member should be an
expert in the field of the problem and all ideas must be recorded.
Reverse Brainstorming:
• It is a group method for
obtaining new ideas focusing on
the negative.
• It is similar to brain storming
except that criticism is allowed. The
main focus is on finding fault by
asking questions.
• Hence focuses on the
negative aspects of a product,
service, or idea as well as ways to
overcome these problems.
• Care must be taken to
maintain group morale.
Gordon Method:
Ø It is the method for developing

new ideas when the individuals
are unaware of the problem.
Ø Unlike many other creative
problem-solving techniques,
begins with group members not
knowing the exact nature of the
problem.
Ø Entrepreneur starts by monitoring
a general concept associated with
the problem, the group responds
by expressing a number of ideas.
Ø Then a concept is developed, followed by related concepts, through
guidance of the entrepreneur.
Ø The actual problem is then revealed, enabling the group to make

suggestions for implementation or refinement of the final solution.
Checklist Method:
• Developing a new idea
through a list of related issues.
• In this method a new

idea is developed through a
list of related issues or
suggestions.
• The entrepreneur can
use the list of questions or
statements to guide the
direction of developing
entirely new ideas or
concentrating on
specific “idea” areas.
• E.g. modify? New
twist? Change, color, odor, shape.
• Magnify? What to add? More time? Stronger? Larger? Thicker?
Free association:
• Developing a new idea through a chain of word associations.
• A word or phrase related to the problem

is written down, then another & another,
with each new word attempting to add
something new to the ongoing thought
processes, thereby creating a chain of
ideas ending with a new product idea
emerging.
6. Collective Notebook Method

Ø Developing a new idea by
group members regularly
recording ideas.
Ø A small notebook that easily
fits in a pocket, containing a
statement of the problem, blank
pages & any pertinent
background data is distributed.
Ø Participants consider the
problem & it’s possible
solutions, recording ideas at
least once, but preferably three
times a day. At the end of a week, a list of the best ideas is developed, along
with any suggestions.
7. Attribute listing: • Developing a new idea by looking at the positives
and negatives.
• This method requires the
entrepreneurs to list the
attributes of an item or
problem & then look at each
from a variety of viewpoints
that will result to form a new
combination & possible new
use that better satisfy a need.
Product Planning and Development Process
What is a Product?
As anything that can be
offered to a market for
attention, acquisition, use, or
consumption that might
satisfy a want or need.
– Philip Kotler
A product could be any of the following

Ø A physical good. (Car, Home, Phone, T.V.)
Ø Person
Ø Place
Ø Organization
Ø Idea
Ø Service Experience
A product can be classified as tangible or intangible. A tangible

product is a physical object that can be perceived by touch such as a
building, vehicle, or gadget. Most goods are tangible products. ... An
intangible product is a product that can only be perceived indirectly such
as an insurance policy.
The five product levels are:
1. Core benefit: The fundamental need or want that consumers satisfy by

consuming the product or service. For example, the need to process
digital images.
2. Generic product: A version of the product containing only those
attributes or characteristics necessary for it to function. For example,
the need to process digital images could be satisfied by a generic, low-
end, personal computer using free image processing software or a
processing laboratory.
3. Expected product: The set of attributes or characteristics that buyers
normally expect and agree to when they purchase a product. For
example, the computer is specified to deliver fast image processing and
has a high-resolution, accurate color screen.
4. Augmented product: The inclusion of additional features, benefits,
attributes or related services that serve to differentiate the product from
its competitors. For example, the computer comes pre-loaded with a
high-end image processing software for no extra cost or at a deeply
discounted, incremental cost.
5. Potential product: This includes all the augmentations and

transformations a product might undergo in the future. To ensure future
customer loyalty, a business must aim to surprise and delight
customers in the future by continuing to augment products. For
example, the customer receives ongoing image processing software
upgrades with new and useful.
What benefits does the model provide?

Explained:
Kotler's Five Product Level model provides businesses with a proven
method for structuring their product portfolio to target various customer
segments. This enables them to analyze product and customer profitability
(sales and costs) in a structured way. By organizing products according to
this model, a business' sales processes can be aligned to its customer needs
and help focus other operational processes around its customers – such as
design and engineering, procurement, production planning, costing, and
pricing, logistics, and sales and marketing.
Grouping products into product families that align with customer

segments helps modelling and planning sales, as well as production and
new product planning.
Product Features vs. Product Benefits
Product features – The physical attributes that are seen in the product.
Product Benefits – Refers to the benefit the consumer would experience in
consuming the product.
The Product Mix
This means product assortment, and it consist of all the products or services
that a company offers to its customers.
Ø Length of product mix – the length of a company’s product mix is the

total number of individual products of services in the entire product mix-
3M has over 60,000 products
Ø Width of product mix – the breadth of width of a company’s product
mix relates to the number of product lines the company process –
Unilever.
Ø Depth of product mix – it’s the number of products in each product
line – Personal care range consist of, Soaps, toothpaste, colognes etc.
Ø Product mix consistency – this refers to how closely related the
various product lines are in terms of use- channels of distribution,
promotion
Industrial Products/Business to Business Products
Ø Capital equipment – consist of all the buildings and fixed

equipment that have to be in place for production. – plants,
machinery, computer installations, generators etc.
Ø Accessory equipment – equipment that does not become a part

of the final physical product but is used in production or office
activities. – office equipment, and factory equipment.
Ø Raw materials – are the basic materials that become part of the
physical product.
Ø Components and parts – are finished goods, which simply must
be incorporated into the assembly of the final product with no further
processing- Intel microchip, good year tires and head lamp units.
Ø Supplies and services – include office stationery, cleaning
materials and services include financial, janitorial, legal, equipment
maintenance and printing.
Product Classifications
Ø Convenience products – relatively inexpensive and frequently
purchased consumer products. The consumer puts little effort to
purchase them. These products could be further classified as
I. Staple goods – bread, milk, toothpaste
II. Impulse goods – chocolates, magazines, perfumes
III. Emergency products – umbrellas, medicines, battery
Ø Shopping products – These are less frequently purchased consumer
products that customers compare carefully on suitability, quality, price and
style - Bicycle, cameras, furniture's, clothing, airlines
Ø Specialty products – these are products with unique characteristics or
brand identification – Cares, watches
Ø Unsought products – these products do not have much of a product
awareness – life insurance, encyclopedias, donations for charity
BRAND
What is a Brand – A brand is a name, term, sign, symbol or design or a

combination of them, intended to identify the goods or services of one seller
or group of sellers and to differentiate them from those of competitors.
(American Marketing Association).
Importance of Branding for Consumers, Marketers and Retailers

The Consumer
Ø Easier product identification
Ø Communicates features and benefits
Ø Helps product evaluation
Ø Establishes products position in the market
Ø Reduces risk in purchasing
Ø Creates interest/ character for product
The Marketers
Ø Helps to created loyalty
Ø Defends against competition
Ø Creates differential advantage

Ø Allows premium pricing
Ø Helps targeting
Ø Increases power over retailers.
The Retailers
Ø Benefits from brand marketing support
Ø Attracts customers
Brand Development Process:
Ø Brand recognition – the first step would be to make the consumer

to identify a brand
Ø Brand acceptance – how you should make them accept your brand
Ø Brand Preference – consumers desire for your brand over
competitors
Ø Brand loyalty – ultimate dream of marketer. To make consumer
loyal to your brand
Ø Individual product branding – Lux, Anchor
Ø Blanket family branding – Damro, Sony, Phillips
Ø Combination brand names – Microsoft Office, Microsoft Windows
Packaging
Packaging is defined as all the activities of designing and producing the

containers or wrapper for a product – Kotler
Functions of packaging
Ø Protection of contents from damage, deterioration or tempering
Ø As a promotional tool- by packaging attractively a marketer can get
the attention and interest of the customer
Ø Acts as a silent salesman in self-service shops
Ø Instant recognition of the brand
Ø Innovative packaging creates competitive advantage
Ø User convenience –storage and carrying
Ø Provides information
Ø Compliance with government regulations
Ø Must be hygienic and environmentally friendly
Ø Management information as bar codes can be used to track sales
Product Planning and Development Keywords:

Product Planning & Development-
Products can be identified as a good or service
Services cannot be touched, tasted, seen, or felt; are performed as an
“action”
Goods are the physical, or tangible, items available for customers to
purchase
Pure Services do not include a tangible product; are the primary “product”
of a business
Product-Related Services include services which correspond to a physical
product
Product Planning refers to the decisions and processes used to create a
“Product mix”
Product Plan allows businesses to create new marketing opportunities;
helps to evaluate the success or failure of current products Brand Name
name, term or symbol used to identify related products
Branding creates a specific image for a product or company; helps to
position a product within a given market Labeling provides critical
product information
Product Design refers to the way a product works or looks; can help to sell
a product based on specific features
Color should appeal to the product’s target market; may change based on
consumer preferences
Quality related to the parts, materials, or construction elements of a product
Product Planning & Development
Quality Control process of maintaining product standards
Quality Circles consist of a small group of employees who identify methods

for product improvement in an informal and constructive manner
Formal Inspections conducted by employees, equipment, auditors, and
inspectors; should occur at each stage of the production process
Product Line group of related items or brands sold by the same company
Product Divisions occur when there are additional product divisions or
product categories
Product-line Decisions consist of offering the right combination of products
within a given line
Product Item describes a specific brand or individual product within a line
Product Mix includes all the products a company makes or sells
Product Life Cycle
Cycle through which every product goes through from launch to expiration;
stages are 1. introduction 2. growth 3. maturity 4. decline
Product Depth refers to the number of available items offered in each
product line
Product Width refers to the number of different product lines a business
produces
Product Development process of creating new or improved products;
involves brainstorming, designing, building, testing, and marketing products;
includes creating a physical model or sample of the product Idea
Generation consists of brainstorming new product ideas
Product Planning & Development
Idea Screening includes evaluating product ideas and feasibility Concept
Assessment includes evaluating design factors and influences
Prototype working model or sample of a product
In-house Development allows companies to control product quality and

production; is conducted within the actual company
Outsourcing includes input, decisions and work from businesses and

individuals outside of the actual company
Focus Groups include a selected group of people used to analyze and test
the concept of a given product
Test Markets include marketing or selling a product in an exclusive area;
are used to determine potential demand for a product
Marketing Research process of gathering, analyzing, and collecting
information about a particular target market, competitor or product
Commercialization includes introducing a product to the marketplace
Improved Products include a complete revision or new model of an item
Product Variation consists of making slight variations or changes to an
original product
Summary:
Even with a wide variety of sources available, coming up with an idea as the
basis for a new venture can still be a difficult problem. The entrepreneur can
use several methods to help generate and test new ideas including focus
groups, brainstorming and problem inventory analysis.
Assessment for this Module:
1. What is the best way to get new idea from a customer?

2. What do you think the best method in generating new ideas?
3. In creative problem-solving techniques what is a “Gordon Method”?
4. Describe the Reverse Brainstorming method?
5. What is Intangible products? List 3 examples.
6. Product Features vs. Product Benefits; Give 3 examples.
7. Give a concrete example of product mix in the market.
8. How product packaging affects you as a consumer?
Academic Honesty Clause:

• Always practice Academic Honesty. Ideas, whether submitted in
writing or shared in class discussions are expected to be the student’s
own. Students should always ensure to make a distinction between
their own ideas and knowledge from information derived from sources
(printed and online/or information and opinions gained directly from
other people).
• Follow the set deadline of submission. In the event of not meeting the
due date for any valid reasons, inform the instructor ahead of time.
• Follow the class schedule reflected in your Registration if you have any
questions or if you wish to have a consultation with your instructor.
• Always include your references. In text and a list of all references used
at the last part of your submitted file.
I affirm that I will not give or receive any unauthorized help on these module activities
and that all work will be my own understanding in each topic content and discussion.
_______________________
Signature over Printed Name
RUBRICS: ESSAY
CRITERIA 1 2 3 4 SCORE
Focus/ Main The essay The essay is The essay is
The essay is
Point poorly focused on focused on thefocused,
addresses topic topic and topic and
purposeful, and
and includes includes few includes
reflects clear
irrelevant ideas loosely related relevant ideas
insight and
ideas ideas
Support Provides little or Supports main Supports main Persuasively
no support for point with some point with supports main
the main point underdeveloped developed point with
reasons and/or reasons and/or welldeveloped
examples examples reasons and/or
examples
Organization Little or no Some Organizes Effectively
& organization of organization of ideas to build organizes ideas
Format ideas to build ideas to build an argument to build a
(Paragraphs, an argument an argument logical,
Transitions coherent
argument
Language Little or no use Some use of Appropriate use Effective and
Use, of elements of elements of of elements of creative use of
Style & style style style elements of
Conventions style to
(Sentence Many errors in enhance
Contains Uses correct
structure, meaning
grammar, frequent errors grammar,
word spelling, and in grammar, spelling, and
choice, punctuation, spelling, and punctuation Uses correct
grammar, makes reader’s punctuation with few errors grammar,
spelling, comprehension spelling,
punctuation) punctuation
throughout with
very few errors
No Very little Sufficient Distinctive
experimentation experimentation experimentation experimentation
nor to enhance with language with language
Originality enhancement concepts and usage to and usage to
(Expression of concepts enhance enhance
of the theme concepts concepts
Does not exhibit
in a
No adherence creativity
creative way
to the theme Applies basic Applies higher
creative skills to order thinking
relay ideas and creative
skills to relay
complex ideas
References:
Kuratko, D. (2017). Entrepreneurship: Theory, Process, Practice 10th Edition. Melbourne,
AU:
Cengage Learning
Hisrich, R., Peters, M., Shepherd, D. (2017). Entrepreneurship 10th Edition. New York, NY:
Mc-Graw
Hill.
https://www.slideshare.net/muhammadalihr/creativity-the-business-idea
https://www.slideshare.net/tharaka14/07-product-planning-and-development
file:///C:/Users/PCX/Downloads/handout_product_planning_development.pdf

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Republic of the Philippines

PHILIPPINE STATE COLLEGE OF AERONAUTICS

Creativity and the Business Idea

MODULE LEARNING OUTCOMES:

1. Develop creativity and problem-solving as entrepreneurial skills.

TOPIC LEARNING OUTCOMES:

1. Identify the different sources of new ideas.

Product Planning Development keywords 27-29 10 mins.

Assessment 30 1.5 hrs.

When your creativity seems to utterly disappear, it could be from an

BY: RYAN ROBINSON

Sources of new Ideas

• Existing product & services

Existing products & services:

• New product idea can

Research & development:

Methods of Generating New Ideas

• The group of 8-14 participants is stimulated by comments from each other

Brain writing: (created by

Problem inventory & analysis:

Creative Problem Solving

Creative problem-solving techniques 1.

Ø It is the method for developing

Ø The actual problem is then revealed, enabling the group to make

• In this method a new

• Magnify? What to add? More time? Stronger? Larger? Thicker?

• A word or phrase related to the problem

6. Collective Notebook Method

Product Planning and Development Process

A product could be any of the following

A product can be classified as tangible or intangible. A tangible

The five product levels are:

1. Core benefit: The fundamental need or want that consumers satisfy by

5. Potential product: This includes all the augmentations and

What benefits does the model provide?

Grouping products into product families that align with customer

Product Features vs. Product Benefits

The Product Mix

Ø Length of product mix – the length of a company’s product mix is the

Industrial Products/Business to Business Products

Ø Capital equipment – consist of all the buildings and fixed

Ø Accessory equipment – equipment that does not become a part

What is a Brand – A brand is a name, term, sign, symbol or design or a

Importance of Branding for Consumers, Marketers and Retailers

Ø Creates differential advantage

Brand Development Process:

Ø Brand recognition – the first step would be to make the consumer

Packaging is defined as all the activities of designing and producing the

Product Planning and Development Keywords:

Quality Circles consist of a small group of employees who identify methods

In-house Development allows companies to control product quality and

Outsourcing includes input, decisions and work from businesses and

Assessment for this Module:

1. What is the best way to get new idea from a customer?

Academic Honesty Clause:

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