Answer the questions.

Marketing Excellence consumers actively want because they offer a superior experience and solve a problem. In order to achieve these >>IDEO consumer-friendly solutions, IDEO tries to uncover deep insights through a variety of human-centered research IDEO is the largest de methods. These studies help the firm better understand sign consultancy firm in how consumers purchase, interact with, use, and even the United States. The dispose of products. This customer-focused approach company has created has run counter to the prevailing wisdom of many high- some of the most tech firms that focus more on their own capabilities when recognizable design designing products. David Blakely, head of IDEO's tech- icons of the tech- nology group, explained, "Tech companies design from nology age, including the inside out, whereas we design from the outside in so the first laptop com- that we can put customers first." puter, the first mouse IDEO employs a number of other observational meth- (for Apple), the Palm ods to conduct "deep dives" into consumer behavior. The V PDA, and the company's "human factors" team shadows consumers, TIVO digital video takes pictures or videos of them during product purchase or recorder. Beyond use occasions, and conducts in-depth interviews with them its high-tech wiz- to further evaluate their experiences. Another method ardry, the company is called "behavioral mapping," which creates a photo- has designed household graphic log of people within a certain area like an airline items such as the Swiffer Sweeper and the Crest Neat departure lounge, a hospital waiting room, or a food court Squeeze toothpaste tube, both for Procter & Gamble. at a shopping mall over a period of days to gauge how the IDEO's diverse roster of clients includes AT&T, Bank of experience can be improved. A third method relies on America, Ford Motor Company, PepsiCo, Nike, Marriott, "camera journals" that participants keep, in which they Caterpillar, Eli Lilly, Lufthansa, Prada, and the Mayo Clinic. record their visual impressions of a given product or category. IDEO's success is predicated on an approach called IDEO also invites consumers to use "storytelling" techniques "design thinking" based on a "human-centered method to share personal narratives, videos, skits, or even anima- ology." The company strives to design products that tions about their experiences with a product or service. Prototyping has also contributed to IDEO's success. It warm, comfortable, and inviting. The hotel added ad- takes place throughout the design process so individuals vanced technology options throughout its lobbies and can test out, experience, and improve upon each level of lounges, such as flat-screen TVs and free Wi-Fi. Marriott development. IDEO encourages its clients, even senior ex- converted the breakfast buffets to 24/7 coffee-shop-style ecutives, to participate in the research so they get a sense cafs, where guests can quickly grab a gourmet coffee of the actual consumer experience with their product or drink and healthy bite to eat any time. And Courtyard cre- service. AT&T executives, for example, were sent on ated new outdoor hangout spots with sound speakers and a scavenger hunt designed to test the company's location fire pits. After the renovations, Courtyard by Marriott software for its mMode mobile phones. The executives changed its tagline to "Courtyard. It's a New Stay." soon realized the software was not user-friendly. One IDEO's novel consumer-led approach to design has led resorted to calling his wife so she could use Google to help to countless success stories and awards for its clients and him find an item on the list. IDEO helped AT&T redesign for the firm itself. The most important result for IDEO's de- the interface to be more intuitive for the average user. signs is that they solve a usability problem for clients. The IDEO helped apparel-maker Warnaco improve sales company goes "broad and deep" to achieve this goal. Since by having its designers shadow eight women as they its founding, it has been issued over 1,000 patents, and in shopped for lingerie. The "shop-alongs" revealed that 2008 the company generated $120 million in revenues. most consumers had a negative buying experience. They had difficulty locating the lingerie section in the department Questions store and finding the right size in the overcrowded display, and they felt the fitting rooms were too small. IDEO devel- 1. Why has IDEO been so successful? What is the most oped a new six-stage merchandising environment that in- difficult challenge it faces in conducting its research cluded larger fitting rooms, "concierges" to give shoppers and designing its products? information, and improved displays. Warnaco imple- 2. In the end, IDEO creates great solutions for companies mented this plan with the help of the department stores. that then receive all the credit. Should IDEO try to cre- In another example, Marriott hired IDEO to help make its Courtyard by Marriott hotels more appealing to younger ate more brand awareness for itself? Why or why not? guests. IDEO conducted interviews and observed guests in the hotel's lounges, lobbies, and restaurants. Its research Sources: Liga Chamberlain, "Going off the Beaten Path for New Design ideas," New York Times, March 12, 2006; Chris Taylor, "School of Bright Ideas," Time, March 6, 2006, p. 48: Scott revealed that younger guests were turned off by the lack of Morrison"Sharp Focus Gives Design Group the Edge, Financial Times, February 17, 2005, p. 8; activity in the hotel's public places, the lack of technology Bruce Nussbaum, "The Power of Design, " Business Wank, May 17, 2004, p. 88; Teressa lezzi offered, and the poor food options. As a result, Courtyard "Marriott Perks Up Courtyard with Edgier. More Social Style," USA Today, April 1, 2008; Tim "Imovate, But Do it for Consumers, ' Advertising Age, September 11, 2006; Barbara De Lollis, by Marriott changed its furniture and decor to be more Brown, "Change by Design, Business Woek, October 5, 2009. pp. 54-56