Where do new product ideas come from? Wouldnt you like to spend your resources improving relationships with customers and doing effective marketing, rather than putting all your resources into research and development trying to find new product ideas?
You might be surprised to know that many new product ideas come not from firms but customers. In fact, users often invent (and sometimes commercialize) new product ideas. In a study by Eric von Hipple (see the reference below), 82% of all commercialized scientific equipment was developed by users.
The marketing implications of this fact are important. First, firms in high technology or high-science industries can benefit greatly by taking a proactive stance towards developing close ties with end users. And this doesnt just mean building close relationships that are designed to make users buy from you. Remember that the purpose of these relationships is to learn from the customers.
Second, a firm shouldnt base their product development efforts on the close relationships with all customers. Instead (and heres the real insight), you have to look for what Hipple calls "lead users."
Many people confuse the term lead users with those customers who first buy a firms product. But thats not necessarily a lead user. Those customers are certainly early adopters, but lead users are something altogether different.
Lead users are potential customers have essentially been dissatisfied with currently available products, but need a product to solve their problem. Lead users then develop their own solutions (i.e., product).