Executive Summary

The Mansfield Armchair Cinema was established in 2008 as the Mansfield Armchair Cinema Trust. The organisation operates a local media organisation, providing a twin-cinema, delivering between 6 and 8 sessions of digitally presented films, 6 days a week.  The primary business is Digital Cinema Operations, which was the first of its type in Australia when established.  The cinema operates Digital Cinema Initiative[1] (DCI) compliant technology infrastructure, which allows it to deliver movies on their release date, which in this small town had commercial limitations previously. With traditional cinema systems meaning movies were on film, the financial outlay involved excluded this type of cinema delivery for the township previously, with the old cinema closing its doors between 3 and 5 years ago.

This case study will examine the business for the purposes of examining the educational development opportunities for youth in rural communities, which this initiative has uniquely brought to market.

Historical Examination

The undertaking to build a new cinema was brought together by the township.  Business owners and higher wealth individuals were presented with a business opportunity to invest into the not-for-profit trust, which was to establish the cinema. Whereas the previous cinema operated on few occasions throughout the week, offering relatively older films, the new business proposition made possible through the experimental implementation of the DCI technology systems (digital projection, digital films) brought about an opportunity to source “day and date release” of new films.

In addition to the ability to show more recent films, another element of the plan included the objective to have it operated by students from the local high school, Mansfield Secondary Collage (“Mansfield High”).  Mansfield High had been incredibly successful in the establishment of school-based apprenticeships throughout the community.  It had in-place the capability and understandings of how to apply learning outcomes and related qualifications to industry-based participation, and allow broader qualifications to be obtained by students.

The capability to engage students in the operation and management of this Cinema brought about three key benefits;

Engaging youth in community affairs

Within small communities, there are much fewer ‘urban styled’ opportunities for youth than would traditionally be available in urban environments.  This new business concept does not discredit the many benefits rural and remote communities offer students.  Rather it seeks to offer similar opportunities in business, training and skills development, for the traditionally uncommon commercial and “white collar” industry sectors, within the rural township.

The other counterpart to the engagement strategy was to ensure the cinema provided students the best possible opportunity for educational and social growth.  In rural environments social engagement is somewhat different. Negative social impacts in the traditional educational frameworks provided by a far more limited educational framework can exclude individuals from far more opportunities than would ordinarily be made possible via the much more diverse infrastructure made available in urban environments if difficulties with any one institution occurred.  Rural and remote communities need to be far more reliant on their local interpersonal frameworks within the communities themselves, and therefore engagement is a fundamental step towards any outcome that could be better, for individuals faced with personal challenges at a youthful age.

Providing unique learning opportunities to youth in a small town

School infrastructure can support learning outcomes within niche commercial environments such as this media business. In this specific case; it was the first of its type, there were no sites exclusively operating DCI equipment to show films, and there were few cinemas with DCI compliant equipment (fewer still, if any, in regional or rural environments) prior to the opening of this particular theatre.

These students were provided the unique opportunity to participate in the defining of how digital cinemas were operated, being the sole individuals on-site who had the knowledge to repair, maintain and support the projection systems on-site as necessary, to successfully start and conduct all sessions. Due to the level of innovation this task incurred, conversations with US Studios were required time-to-time, alongside other professional / industry interactions and support activities – unique to the establishment of new industry.  Some of the many opportunities provided including learning outcomes around establishing a website, starting-up a small business, facilitating customer service for patrons without the ability to use existing processes, and how to produce and deliver advertising for the cinema.

These types of learning solutions are not unique to the cinema example. However, the learning outcomes are particularly relevant to only a small percentage of individuals within any subgroup undertaking institutionally based education programmes. In all cases, a class of students seek opportunities to learn and develop for community engagement and fulfilment of life and full potential.  The Mansfield Cinema provides a direct and specific example of how this outcome can be supported by community inclusion activities, and association with curricula delivery by institutionally recognised educators, which only affected four people in the first programme of education delivery.

Lowering the operational cost of cinema business.

The cinema was the First Regional Australian Digital Cinema, with Digital Cinema Initiative (“DCI”) approval.

The difference of a DCI cinema is the projection system.  Older cinemas use Film, which is most recently based on 35mm Prints.  DCI cinemas utilise Digital Media Files, delivered on Hard Disk Drive (“HDD”); which are then delivered to the projector digitally for play out via a Digital Projector and Audio Processors.  In this case, the facility was set-up as a mixed use Digital Media Business with two Auditoriums (or cinemas).  The facilities and technology infrastructure were established to provide the capability to deliver a range of content from the latest films, through to broadcasts, Optical Disk content (i.e.: DVDs and Blu-Ray) in addition to other non-traditional sources such as computers (for presentations) and gaming consoles.  The cinema was set-up to play anything with standard Audio Visual and/or Internet Interfaces, delivered through a system that translates the myriad of standards into 1080p HD or 2K Image formats with 5.1 Cinema Quality Audio in addition to a stage and electronic whiteboard for corporate and community events.

As a result, the auditoriums are capable of operating in a way that is far more flexible than any comparison theatre of recent times.  As such, it aims to assists the cinema in generating client revenues from a variety of sources overall, otherwise not obtainable by other cinema auditorium operators.  Yet, the act of developing these infrastructures largely relay’s upon the student’s ability to be entrepreneurial, and to undertake the task of developing the enterprise and its offerings.

Through the Student based Apprenticeship model, a significant portion of the employment fee is subsidised by the government.  This in-turn provides a significant contribution towards the operational cost of the cinema, and its operations.  At all stages, an adult is present in order to manage the theatres operations overall and to provide on-going tuition and supervision of the students. However, these adults are not competent in the operational techniques required to undertake all the tasks, which are subsequently managed by the students.

In combination, the learning environment provided was exceptional for students who took to the facility and made it work with entrepreneurial like compliance.  With the supervision of mentor-like adult managers, who assisted to operate the cinema overall, the students learned how to build and operate a small business, as a team.

Their keen interest in undertaking these roles, and the maturity developed throughout undertaking, benefited both themselves, and the wider community, as the capability for the cinema to engage students made the cinema possible for the community overall.

TRAINING CERTIFICATIONS

In-order to facilitate student training for the implementation of the School Based Apprenticeship Model, a local Registered Training Organisation (RTO) was engaged. The RTO was required to undertake a standardised course, based on standardised modules. These modules could either be provided as a complete course, or as counterparts, which could be brought together to form a new course.  In either case, the necessary learning outcomes delegated as pre-requisites for a pre-determined certification, as existed in the market.

The difficulty experienced with this educational model was that there are no precedents for this type of learning environment, let alone a relevant learning schedule.

In this case, it was the first digital cinema operation and related management requirements could realistically be aligned with a much higher grade of learning than traditionally associated with that of a year 10, 11 or 12 level course or what would be required to ensure entrance into university, in a manner similarly available to students who undertake similar tasks within an institutionalised environment.  In a commercial sense, the achievements made by these students were recognised, by way of awards presented to the most diligent student for recognition of brilliance by association for his works. As part of a government programme, a PR Agency was sent up to include the work in a PR program that sought to recognise the school for achievements under a government programme.  Similarly, a student was encouraged to apply for two awards, one of which he won and the second, received a runner-up award.  These events were beneficial for the cinema, the school, the government and a range of other stakeholders.  Nonetheless, the student still failed to retain a level of certification required to progress from his year 12 level of studies into a university degree course, where the skills enjoyed by all parties could best be nurtured and further developed into the future.

The main difficulty this problem exposed; is that there is little background knowledge or experience in regards to digital cinema operations or small digital media business operations; and therefore, it was impossible for the training authority to effectively tailor a course that could qualify a student’s work, based on the current institutionalised education paradigms.  The result is learning outcomes that are achieved on a basis of compliance to an existing system, which is still largely not understood by the RTO provider and/or their representatives.  If the development and certification of knowledge is the foundation for which educational institutions were established, why is it the case that students forging knowledge become overlooked in terms of personal growth, but simultaneously showcased and politicised?  Is this at the expense of youth and other learning participants?

The MAC trust, established an operating model for learning and community service.

In 2010 we’ve found that it is not feasible for this learning environment to provide tuition to students beyond the school-based apprenticeship commitments, made at the formative stage.

Due to the heavy emphasis student’s place on the learning outcomes of their school-based apprenticeships, they are somewhat limited in their capacity to achieve the results typically needed to achieve a high VCE score.  They are not recognised for the excellence they may show outside of the classroom, and are therefore denied many of the opportunities given to their peers who focus entirely on classroom-based tuition.

Therefore further work is being undertaken to expand the operations of the Mansfield Armchair Cinema Trust, to incorporate an advertising agency, which aims to service the local community with media production and output. The broader media skills training will provide additional skills to these students, and seek to broaden the learning outcomes achieved by students engaged with the MAC Trust.

The most recent activities being undertaken as a constituent to this objective is the establishment of basic media production workflow process, and the delivery of a sophisticated ‘model’ campaign, which as of today has resulted in mid-six-figure gross sales income for one of the foundation level investors in the trust.  This sales outcome is in day 3 of its sales pipeline, within a campaign period of 3 months, and is expected to gross more than half a million dollars of gross revenue overall.  This format enables additional revenue streams to be attributed back to the foundation, which in-turn can utilise the funding to support HR growth, skills development, the establishment of non-school based traineeship business system and related operational development within an organisationally sustainable framework.

To outline the undertaking, the first project was focused upon sustainability, delivering sustainability solutions (specifically solar power) to the community, as a means to achieve the remunerative outcome that could fund this operational expansion, as required by some of the key individuals involved in establishing the cinema.  It also creates an opportunity to deliver them a new framework for continued learning opportunities.

Due to the number of individuals this undertaking requires, and the differentiated skills they would have to develop as part of a small team, it has been suggested that it will be difficult for educational institutions to engage the appropriate set of individuals / learning modules Or difficult to engage Educational Institutions?

On examining this issue, the problem lies in defining whether a sufficient level of knowledge has been gained by the student, and whether how this can be effectively qualified.  If no institution is capable of recognising the skills development of these students within a rural community, then at least two further aspects should be identified as potential risk factors;

Is it in the best interests of the students to pursue this type of School Based Apprenticeship?

Is there a problem within the Education Industry in relation to the granting of qualifications based on achievement of learning outcomes?

In a report compiled by the Rural and Regional Services and Development Committee to inquire into Retaining Young People in Rural Towns, 22 findings were identified by the report.   The report was designed to assist in the identification of factors that influenced youth when considering their future in association to their rural communities, and their continued residence within such communities.  The intention was to develop strategies and recommendations on how to increase the number of young people within this demographic to maintain residence within such communities.  By association, this report also infers responsibility overall to develop such individuals to full potential, by way of services and opportunities provided to youth WITHIN these communities, rather than neglecting the community as a whole by way of providing any such opportunities solely via relocation to urban communities.

Within the specified recommendations identified by this report, a number of the 22 findings are closely aligned to the objectives of The MAC Trust, and the difficulties experienced through its operational development;

“Finding 1: The development of high-speed internet access throughout rural andRegional Victoria will become increasingly important in providing education and employment opportunities for young Victorians in rural areas. The Committee recognises the increasing importance of these services for social wellbeing and the reduction of isolation”

The MAC Trust operates its business with close alignment to both Digital Media and Digital Communications Systems.  By association, this is implemented through the application and utility of Broadband internet for both Media Presentation and Media Production for a range of clients throughout the community.

Support is provided to The MAC Trust by way of internet.  This support is complex in nature, involving Internet based verbal, text and digital framework-based support activities.  Students use these support services to enhance learning outcomes and to seek knowledge as required undertaking tasks assigned by the business through the course of its activities.

“Finding 3: The most significant reasons for young rural Victorians to leave the community in which they were raised is to gain access to education and training, employment, or to experience urban and/or international lifestyles.”

The opportunities generated by The MAC Trust are well placed to allow skill development in an area which can lead to employment in regional areas.

“Finding 4: A large proportion of rural young Victorians wish to remain in a rural community.”

“Finding 5: The ability of rural young people to exercise their desire to remain in their rural community is closely aligned with the range of available educational and economic opportunities, and youth-appropriate services as well as community decision-making structures which include young people’s participation.”

“Finding 6: There exists a proportion of rural young people who remain in their rural community because of a lack of access to appropriate pathways into work or education and training opportunities of interest to them.”

“Finding 7: The most significant reasons for in-bound migration of young people to rural Victoria are: the positive community, lifestyle and environment attractions of these areas, for employment, and/or to settle into a long-term relationship.”

“Finding 9: Rural youth migration has negative outcomes for some rural communities, exacerbating problems associated with population decline such as the increased average age of many rural communities and the under-representation of young people in rural communities.”

“Finding 10: The decisions by rural young people to move can be influenced by negative perceptions about life in rural Victoria.”

“Finding 11: The Committee acknowledges the value of a diverse range of professional role models for young people in rural communities.”

“Finding 12: The Committee acknowledges the value for rural communities of maintaining links with young people from their area”

“Finding 13: Rural areas of Victoria have distinct geographical, social and economic characteristics. These characteristics often mean general policy processes fail to consider issues of distance and low population density, with negative impacts on service delivery and public administration. Greater attention is needed in policy planning and administration, to the specific needs and requirements of rural and regional areas of Victoria.”

“Finding 14: The Committee recognises the important role that ongoing infrastructure development in rural areas has on ensuring business growth, community and social development.”

“Finding 18: The Committee finds that Local Learning and Employment Networks are providing important connections and support mechanisms for rural communities on issues of education and employment.”

“Finding 20: The Victorian private sector represents the most significant source of employment for rural young people. Ongoing efforts to improve government services to, and reduce compliance costs on, rural businesses will have positive flow on effects to employment.”

“Finding 21: The Committee finds that there are negative perceptions held about the availability and quality of employment in rural Victoria. These perceptions serve as a barrier to the retention of young people, and inbound migration, for rural Victoria.”

Broadly speaking, there is a philosophical attitude held within our culture that those who work hard and gain skills should be recognised for their work, both financially and by certification.  In turn, these qualifications are becoming increasingly important within the corporate sector and further mandated by the Human Resources Sector through outsourced Employment Service by organisations seeking new talent.  In this case, if / when a course is defined surrounding this type of small business / media systems operation, the participants involved in defining this “new” method, will not be capable of becoming qualified within that field without undertaking coursework through latter years, that will serve primarily to qualify albeit providing related skills development, at the cost of several years overall.

Notwithstanding the diminishment that may occur between the present and such a time in the future; any event may further compound industry growth factors within innovation sectors of industry as this model serves in practice to“lock out” the innovators of an industry, in service for the educational sector who at the time were incapable of assisted them, especially during the inception of new industry developments; and unfortunately, this is not an isolated event.

As previously noted; the report by the Victorian Government (2006), entitled, “Inquiry into Retaining Young People in Rural Towns and Communities”, outlines clear decisive findings primarily recognising the  need to resolve these types of issues in society, for the benefit of society overall.  In small communities, no matter the location, innovation and the application of innovation fail to be recognised by institutionalised educational processes.  This in-turn results in a failure to provide the “student” with a level of certification required for professional development and personal capacity to participate “to full potential” within a community, for mutual benefit overall.

As such, this case is not specific to rural communities but would most likely be exhibited as a higher percentage when compared to population due to demographic limitations such as population density.

Once a new industry has been established, for example Internet Video Systems, there becomes a clear requirement to undertake studies throughout the pre-existing standardised framework; whilst in other pre-existing areas, there are already clear processes set-out, such as the apprenticeship system.  In the case of Internet Video Systems, the standards are still not really set, even though it is now possible to do a multimedia degree in broadband delivered video systems and business models.

In these modern times, through the advent of broadband internet communications, it is now plausible to suggest that no matter where in the world an individual is located, they are capable of communicating with others throughout the world, at any level of authority, knowledge or technical capacity, so long as the medium is capable of transferring a suitable level of communications between parties who are able to comprehend each-other, and interested in the content of the communications for further development overall

Summary

Much like the term “church” defines a group of people, not the building in which they form a community; education is also not so much about the buildings. Although the buildings are important, providing an environment dedicated to learning, research and personal development, they are not the only space where people define new knowledge and new professions; it is through the adaption of existing works and expertise development.  As such, and as exampled in this case; there is a clearly identified need to encourage innovative learning methods and the fulfilment of students to “full potential”, through the application of learning solutions to the innovative environments in which the principle learning takes place.

This model will form the grounds in which new benefits can be obtained, for individuals and the community as a whole.

There are ranges of fundamentally disparate elements, which are not effectively represented, in the current framework our current institutional learning environments utilise as core business systems for the delivery of qualifications. Yet, associated to this market segment, was in previous centuries a significant social schema of practical tutorial, latter rationalised in terms of apprenticeships.  Traditionally, these apprenticeships worked upon sciences of metal or woodwork, but throughout latter years, continued to include plumbing, electrical work and other “trades”.

In today’s market, there is a disruptive emergence of new trades, formed via the emergence of broadband and computing technology.  These are not traditional trades, but neither is they professions as defined by an educational degree. Rather, these are new areas of innovation, which continue to develop at a more rapid pace than what our current educational systems are capable of defining.

Expanding on this case study, these difficulties can be seen throughout our society.  As self-taught programmers or inventors invent products that build corporations, these people are then under qualified to operate within the organisations their works established or supported, due to setting the frameworks rather than ‘learning’ them through recognised channels.

And individuals qualified within one segment of expertise may want to migrate roles or change career paths, which in turn may require or benefit from retooling with new skills, on an educational basis.

The learning paradigm researched in this paper aims to deliver a method to leverage intellectual capital, the success of which our nation’s economic performance heavily depends.  Through the development, and most importantly recognition, of skills which can be gained outside of a classroom setting, new and innovative professions can develop more rapidly, allowing our nation to be more highly competitive, socially responsible and equal to all regardless of location, and overall leading more people to fulfilling lives in careers they are happy and effective in.  Through creating these opportunities, and recognising the skills learnt through such opportunities, we can shift our educational model to one, which is better geared towards lifelong learning.

Overview

When introducing new products to market, customer behaviour should be considered.  Core areas of importance are brand positioning, addressing target customer needs, and making the concept memorable through marketing.  In this paper, I will describe a method that embodies strategies to mitigate risk surrounding this practice by associating scientific theory on memory to educational concepts on marketing new products and services.  These two concepts will be embodied as a marketing methodology and toolset that can be applied to effective deliver outcomes that resonate with customers, by creating new memories based on relevant links to familiar concepts.

The paper will also explore counterparts of an R&D process with a go to market approach, by describing a variety of ideas and expand on how they can be broadly applied successfully for new product and service marketing.

Introduction

A new product or service is the result of research & development (R&D).  Marketing a new product or service effectively, is the means to obtain a return on investment.  It is therefore important to perform R&D in a manner that targets sales.  Oftentimes this process should include defining a marketing definition that can be used for insight and product development structure, throughout the R&D Cycle.  By thinking about products from a customer’s perspective, the risk of failure diminishes overall.

In-order to consider and mitigate commercialisation risks, go-to market strategies, considered throughout the R&D process can provides an integrated method to consider how best to utilise funds for a projects   This process is equally based on the ability for a marketer to associate to the consciousness memory states of a consumer, as it is to develop a useful product or service.  In many cases, useless products make it to market through the application of good marketing techniques alone.

INFORMATION PROCESSING MODELS, CONSCIOUSNESS AND MEMORY STATES

When considering why a marketing model works, and how it works; science offers some assistance in consideration. This is assistive overall in defining how to practice marketing methods, for new product and service projects.

Figure 1

In session notes prepared by Jaideep SENGUPTA, Head and Chair Professor for the department of marketing at the HKUST Business School[1] he provides the model above (“figure 1”) describing a concept for representing consumer information processing. Dr Sengupta’s presentations suggest that memory is a vital influences on consumer behavior.

Over time, I have researched this area of science.  Initially influenced through an extended family member, Sir John Eccles Carew[2], who was prominent in the area of synapse research  http://nobelprize.org/nobel_prizes/medicine/laureates/1963/eccles-bio.html, my studies resulting in a design for an internet based computing platform, an area now called “cloud-computing”, I’ve developed my concepts in this through the application of this theory on a variety of processes including new product and service design.  As described by Ralph C. Merkle Senior Research Fellow, Institute for Molecular Manufacturing[3] “Today it is commonplace to compare the human brain to a computer, and the human mind to a program running on that computer.”[4] Further research, has provided the concept of a mind or this marketing technique, in sudo-scientific terms, as a “neural” network consisting of interconnections (bridges) of static memory elements.  The bridges connect individual memories, which in marketing terms can be termed “paths”.  These paths become increasingly defined and easier to use, through repetitive use.

In contrast, elements, which are not used frequently, become more difficult to utilise overall.  Similarly difficulties, although instituted are not optimal for marketing purposes.  On a more scientific basis, he mind is electro-chemical, as the organic electrical process interacts with chemical mechanisms; providing in turn, positive or negative stimuli.  Bringing this back to marketing terms, these mechanisms provide an indices to the natural process of association, which can be effectively utilised for marketing purposes.  Neural association, is fundamental to the formation of identity, and is continually personal developed and interactions with life.  By association, in marketing terms; this mechanisms affects buying decisions, throughout our commercial environments.

In Figure 1, the application of these concepts is related to conditional responses:

1. The recipient has been exposed to an idea; whether or not they’re paying attention at the time; and,
2. The way that information is interpreted, based on factors of memory, conditional acceptance and therefore perception.

Therefore; these factors are broadly behaviourally characteristic rather than specifically defined within any one socio-economic groups, and related intra-group differentiators.  One of the many benefits is that behavioural analysis assists in the assessment of new concepts, whereas other models may more so focus on current trends and pre-existing offerings / buying decisions.

The objective is to provide a method to engender an objective understanding surrounding the conceptualisation of an R&D Activity, and to optimise that effort.  Through the application of this type of model; opportunities can be filtered to better define potential uptake factors, and essentially brings about a method to identify choices for future consumers, based on the information that can be made available to them; which in the perspective of Marketing New Products and Services, should relate principally towards contributory steps required to engender a positive buying decision.

Consciousness and Memory States

A common model of consciousness suggests two primary subunits, subconscious and conscious states. Conscious, determining things people are aware of; and, subconscious, being things people are not aware of, but are still contributory towards behaviour.  In consideration, behavioural cycles and attentiveness can be influencing both conscious and subconscious memory states for decisions making processes.

The processing model described earlier also describes a validation and verification methodologies, embodied within short-term memory, prior to acceptance; which when successfully achieved; provide allowances for associate and storage within the long-term memory segments, of a mind.

Short Term Memory is all about the present.  Whereas long term memory, although conditionally associated provides broader more complex storage of an unlimited number of ideas and concepts, as perceived from the present. As an application of these theories, I have provided two appendices.  The first discuss a marketing model in association to an R&D cycle for the purpose of taking new products and services to market, and the second provides some real-world examples of the concepts described herein, as they are applied in the market.

Conclusion: Making Products Memorable

To assist in successful sales and marketing of new products and services, association should be used as a tool throughout the application of R&D for new products or services;

• It is important to consider the customer when defining the product; and,
• The modus operandi when marketing a new product is to engendering positive experiences; and that,
• Through the utility of psychological association, communication capacities can benefit by making it easier for consumers to remember the offering; and finally,
• The net result obtained through the implementation of new product and service marketing strategies, is hopefully a memorably positive outcome, which obtains acceptance right through to the checkout.

The style in which R&D is delivered to market significantly impacts sales related objections.   If it is negatively perceived from the beginning, it is unlikely to succeed overall.  It is therefore imperative that R&D activities take marketing into account throughout the commercialisation lifecycle.

Through excellence in the application of marketing strategies, attributed brand-equity becomes a tangible asset that supports both ROI, in addition to the means required to value the output at a higher premium, resulting in more profitable outcomes, above and beyond the cost of the marketing process.  It is therefore in the interest of every marketer to consider how to make new products and services memorable, as they are brought to market.

Subject: New Product and Service: Marketing Strategy and Product Development

APPENDIX-1

DEFINING THE PRODUCT

Brand Positioning is an important production technique that assists to enhance the way to an organisation is described, and provides appeal to their offerings.  Products and/or services also have a brand in addition to a brand context; nonetheless, it is important to consider the differentiation between the brands, and define both a product strategy and a brand strategy as separated processes overall.

Apple Computers brand, is “Apple”, which has many associations. This brand is then segmented into sub-group, providing definition to the product sold by that company.  Products such as iTunes, iPhone, iPOD, iPAD or the iMAC, utilise the ‘i’, as a precursor to the product label, which can be easily associated to both “internet”, as well as “individual”.  These products are marketed inline with both concepts, through application and design.

PRODUCT or SERVICE POSITIONING

Throughout the R&D process, the strategy for the commercial offering can best be defined.  Although the best possible financial outcome is generally a key consideration; other elements come into play to engender the delivery of that result, within any specific project team operating in any market.

Crazy John’s as a Case Study for this example;

Crazy John’s stores started out as a Telstra Mobile Reseller.  Their service offering provided “crazy deals” for mobile purchases, incorporating phones, accessories and telecommunications plans with Telstra.

In this example: Telstra provided the “trusted brand” position, required to form long-term contracts with almost open-ended fees attached.  They are well known both organisationally, and as a provider both throughout Australia and the World.  Crazy John’s customers became contracted to Telstra, which minimised any objections to a 24 month Mobile Service Contract with “Crazy John”.   In addition to the term of the agreements, they were likely also contracted to the lower end of the plan offers, providing a cheap on-the-spot deal; with significantly higher margin usage plans.  The benefit Crazy John offered Telstra, and Customers, was the idea that they could get a “crazy” deal (cheap) for their phone and accessories on the Telstra Network.   This provided them the capacity to build a retail network for handsets and accessories at price competitive rates.

Although people are less likely to purchase long-term associations with a branding campaign entitled “crazy”, this did not matter in this case, as the contract was with Telstra.  Crazy John provided an easy and perceptually cheap way of getting a new phone, which was then contracted (connected) to Telstra.

TARGETED MARKET EVALUATION

The target customer can be best established through the utility of product or service positioning techniques. Investigating who is most likely to buy the product is imperative to defining a sales strategy around that market.  This process includes; statistical generation, price point evaluation and other market research, in-addition to in-person discussions, and other interpersonal communication anyway feasible.

Market evaluation can result in the finalisation of a project, an entrepreneur, however, can “going back to the drawing board”, and redefine the opportunity, which at a minimum, improves considerations for the next strategy which overall through application should result in the identification of a viable opportunity.  This in simple terms creates a go to-market opportunity or go to-market strategy.

ASSOCIATION TO CONSUMER CHOICES

Consumer buying decisions for the proposed product or service should be more obvious and more easily defined to others through the development of a go to-market strategy.  Marketers, working with Entrepreneurs can then “Spin” the R&D outcomes, to manufacture a brand story and specialised linguistics, for market prototyping activities.  The language elements further enhance capability to engender positive consumer choices, which in product terms has implications across packaging, merchandising and other go-to-market process.  This in-turn, engenders a prototyping phase of development, which requires further development.

CONSUMER ORIENTATED STYLING

Prototyping should result in a customer-orientated product, ready for market testing.   The outcome should be ready to initiate pre-sales, when the prototype can progressively be presented to potential customers. Feedback is essential, and the same marketing process may be repeated for further refinements, to assist in the creation of new versions or if the product fails to engender positive responses; to finalise the project and/or go back to the drawing board.

DEFINING THE TEAM STRATEGY

Once the R&D outcome has been established; team buy-in is essential.  In some cases, the team changes once a marketable product has been identified; in other cases, the team can be maintained throughout the products lifecycle.  Unless the team, taking the opportunity to market understands what they’re offering, in simple marketable terms; the ability to sell the product to anyone will be significantly diminished.   Through focused efforts towards ensuring “buy-in”, the organisation is rewarded with a more effective use of human capital, to sell and support each other towards focused efforts. However, if this cannot be achieved, alterations need to be made to ensure viability overall.

To demonstrate excellence in this area; I have provided a few examples by Apple Computers, which I have attached as an appendix.

APPENDIX 2

New York Times Web Ad:  APPLE 1# in CUSTOMER EXPERIENCE

This advertisement, executed on a virtual newspaper, suggests that Apple is #1 in Customer Experience. It’s story provides obvious differentiation between an Apple user, and a PC user. It uses brand association to increase perceived value of the Apple platform, over a “PC” platform.

APPLE IPAD TELEVISION COMMERCIAL (TVC)

Funky music, device demonstration, association to lifestyle and a relaxed way to be connected.

By association, a concept of being cool, calm, organised and purposeful, brings the iPAD to market.

The Apple iPhone 4 – Facetime commercial.

“Only available, on Facetime, iPhone 4.”

The commercial is all about memories, and the ability to connect to memories through the use of an apple product regardless of whether or not the individual is able to be there in person.

Examples illustrated in this TVC (Television Commercial) illustrate examples including; a new family, and the celebration of a new child, a scenario of the ultrasound, where the paternal partner is not present but is connected; and to continue this concept seamlessly, a partner who cannot talk or hear, due to impairment communicating on mobile through video.

[2] http://nobelprize.org/nobel_prizes/medicine/laureates/1963/eccles-bio.html

[3] http://www.merkle.com/

[4] http://www.merkle.com/humanMemory.html

1. The iTV Platform is a Technology solution incorporating open source technologies to enable the delivery of Interactive Television programming.

1. The iTV Platform will incorporate many existing, international standards to deliver a solution that can be embraced by the broader interactive television Industry.

1. To build the iTV platform a range of standards will be integrated deliver a prototype.

These standards may include (but are not exclusive to);

3.3     DVB-MHP

3.3.1           Multimedia Home Platform (MHP) is the open middleware system designed by the DVB Project.   DVB-MHP has been ratified as a standard for existing Digital Broadcasters, in Australia and throughout much of the world.

3.4    TV-Anytime

3.4.1           “TV-Anytime” (TVA) is a full and synchronised set of specifications established by the TV-Anytime Forum. TVA features enable the search, selection, acquisition and rightful use of content on local and/or remote personal storage systems from both broadcast and online services.

3.5     ISMA

3.5.1           Founded in 2000, the Internet Streaming Media Alliance (ISMA) is a global alliance of industry leaders dedicated to the adoption and deployment of open standards for streaming rich media such as video, audio and associated data over Internet protocols. The goal of its membership is to promote standards-based solutions that offer greater choice, flexibility, extensive cost efficiencies, and higher quality of service. The organization achieves this by providing the industry with technical specifications based on new and existing non-proprietary standards and testing solutions that enable multiple vendor, multiplatform interoperability with its product conformance program. ISMA collaborates with other trade associations and standards bodies to promote interoperable solutions across the entire content delivery spectrum.

3.6    Blu-Ray Disk Association

3.6.1           Blu-ray Disc is a next-generation, optical disc format that enables the ultimate high-def entertainment experience.

3.6.2           BD-ROM is designed not only for pre-packaged High Definition (HD) movie content but also as a key component of a consumer HD platform. As shown in Figure 1-1 below, the Blu-ray Disc (BD) platform is designed to provide access to HD content throughout the home via HD digital broadcast recording and HD playback functions.

3.6.3           BD-ROM also provides a fully programmable application environment with network connectivity thereby enabling the Content Provider to create highly interactive, updateable BD-ROM titles. This mode is based on a platform that is fully compliant with the J2ME Personal Basis Profile Java platform (PBP 1.0) and the Globally Executable MHP specification (GEM 1.0.2). It is known as “BD-J”. Content Providers are able to include interactive Java applications on a BD-ROM disc in various ways (one application for the entire disc, one application per Title, etc.).

3.7    Moving Picture Experts Group (MPEG)

3.7.1           The Moving Picture Experts Group (MPEG) a working group of ISO/IEC in charge of the development of standards for coded representation of digital audio and video. Established in 1988, the group has produced MPEG-1, the standard on which such products as Video CD and MP3 are based, MPEG-2, the standard on which such products as Digital Television set top boxes and DVD are based, MPEG-4, the standard for multimedia for the fixed and mobile web, MPEG-7, the standard for description and search of audio and visual content and  MPEG-21, the Multimedia Framework.

3.8    Darwin Streaming Server

3.8.1           Darwin Streaming Server, the open source version of Apple’s QuickTime Streaming Server technology that allows to send streaming media to clients using the industry standard RTP and RTSP protocols. Based on the same code base as QuickTime Streaming Server, Darwin Streaming Server provides a high level of customizability and runs on a variety of platforms allowing you to manipulate the code to fit your needs.

3.9    Linux

3.9.1           A significant amount of the technology platform will be designed to operate on the Linux platform.   The Preferred Operating System is Red-Hat Linux, subject to licensing agreements.

1. The iTV Platform is a largely Open Source Platform designed to connect interactive content publishers via a channel platform, on compatible TV connected devices.

1. The iTV Platform generates Revenues from the use of the iTV platform by 3^rd parties.  Key Revenue drivers  will include, but is not exclusive to;

5.1    A Per Minute Video Usage Charge from Server to End-User device

5.2    A Per MB Data Distribution Charge from Server to End-User device

5.2.1           Product and Service charges in connection to the deployment of technology and content services to customers.

Intellectual Property Protection Strategy of The iTV Platform.

1. Licensing.

The Service will use a specific license, for distributing the Open Source software package free of charge. Certain elements of the software platform will require licensing from relevant license holders, however it is likely that this will be minimal.

The Licenses will allow the use of the software components, by third parties who would like to adopt the standard for their device.  Although the Standard is available free of charge, the company will not be able to use the trademarks of The iTV Company (or other entity) in association to the promotion of compatibility with the platform; unless, they would be license holder pays for relevant standards validation by the company.

1. Data Distribution, Tracking and Control Mechanisms.

The Service will utilise a monetisation system, that both provides the location of an iTV Asset to the network and a method to pay / charge for the use of the system.  This will be facilitated through a domain name, that will use a sophisticated Distributed Billing Engine that will identify what transactions are being processed, by who and what specifically.

The systems, in-order to interoperate need to register with this domain in-order to become functional / active.

The data-generated will be an encrypted string that will be send from one device to another across the network upon initiation of each and every transaction.

As a general rule, an invention is a solution to a technical problem which has utility in a field of economic endeavour.

In general, if the solution to the problem is novel and involves an inventive step when compared with anything previously disclosed anywhere in the world, it is patentable.

The purpose of this document is to provide information from which a patent specification (a document describing the invention) can be prepared.

INFORMATION REQUIRED

1.         Field of the Invention

The Field of Invention is a Method and System for the Monetisation of Interactive Television.

2.         Background to invention

2.1       The problem

Interactive Television is an emerging industry.  IPTV and iTV Technology Vendors, Systems integrators and Network Operators use DRM Key to manage the Transactions of Content Titles on a Per Transaction Basis.  This is attached to proprietary software systems that are secured by End-Point Serial numbers and other Software Protection Mechanisms.

2.2       Known solutions to problem

Other Methods and Systems for Monetising Interactive Television have also included Software Codes distributed to end-user Devices.

3.         The Invention

3.1       Description

The System is dependent upon a group of processes that establishes a “monetisation” network between parties.

3.1.1 The Central Address – the Central Address contains database services communicating between the networked software application instances.

3.1.2 The Client – is a software program that enables the communications between the distributed networks instances

3.1.2.1 The client requires Registered information to be acquired via a Professional Services organisation in-order to initially obtain Account Information.

3.1.2.2 Once the Client has established an account, they are able to connect to the network using the information provided.

3.1.2.3 The client originates the information between their user environment and their Account Details.

3.1.2.3.1 The Client describes the platform in both hardware, software and network location terms in real time to the central address to formulate identity. (“Identity”)

3.1.2.3.2 The Client then connects via Bluetooth to the Account Holders Mobile Phone, and transfers an information code to the authorised registration organisation.

3.1.2.3.3 The registration organisation receives the information, personally communicates with the end-user and sends a digital code to the client.

The Client is then activated.

3.1.2.4 The Identity information provided by the client is then used to provide an encryption information transaction process for tracking and storing the transaction details.

3.1.3 Transaction.

As identities utilise the larger software environment to transact information to other identities on the network, a transaction process occurs. .  information transaction will be provided with a unique digital Identity sting, based on the current information of the parties in association to the transaction. The Information may be transacted in either a native or protected formats. to other identities on the network.

3.1.4 Resources

3.1.4.1 As identities provide transactions through the clients, resources are created in the databases located at the central address. (“resources”)

3.1.4.2 The Central Address, then encrypts the resource address and enables it to be distributed to the client identities that do not store the information.

3.1.4.3 The Encrypted resource ID is then used as part of the transaction request to acquire the information from the alternative identity.

Describe how your solution differs from previous attempts noted in 2.2

With reference to figures or flow charts, give a very detailed description of your solution, and how it would be implemented in a practical situation.

3.2       Advantages

Describe the advantages of your solution.  Mention critical commercial aspects.

3.3       Concept

Describe the principle or concept that has underlined you finding a solution to the problem.

What are the features of your description in 3.1 that embody the essence of your solution/advantages.

3.4       Alternatives

Describe in detail variations to your solution that, whilst may be not working as well as your solution described in 3.1, will nonetheless embody the concept of 3.3

4          Inventors

Timothy Charles Holborn, 63 Yerrin St, Balwyn. 3103 Victoria, Australia. who is an independant party. the basic concept and/or design the features that embody the essence of the invention, as noted in 3.3.

5.         Provide Drawings

Codename: “Immersive”

Project Owner:  The iTV Company Pty. Ltd.

Project Partners:  confidentia;

Start Date: April 2007

Free to Air, Interactive Television Platform for Australia.

1.0          Project Overview

The immersive project aims to distribute content via a standards-orientated interactive platform to TV’s, to provide a mechanism for Free to Air broadcasters and other channel providers to compete with pay-tv, PC Internet and other similar platforms.

iTV content is defined as audio / video and computer software (HTML, JAVA, etc.) that is compiled into a presentation that can be manipulated by an end-user via a “remote control”.

The immersive project will produce a system and methodology to generate iTV channels and content, distribute iTV content securely within a distribution environment (ie: Australian Broadband Network) and view / interact with content create, on a standard advanced set-top box.

Commercially, the immersive project will demonstrate a “free to air” styled IPTV/Digital TV service, via a Set-Top Box that will enable viewing of a free to end-user, interactive content.

The principle distribution of  iTV will be paid by the broadcasters via advertising revenue, as an extension to the existing FTA Business Model. The system will however,  be capable of delivering additional “iTV” services that incorporate end-user fee (“premium services”) orientated business models.

Background: The convergence of video media business systems.

Free to air broadcasters have been steadily losing their audience to other applications and services that utilise the television, over the past decade.  This has produced a range of issues for free to air broadcasters, the most worrying of such is an effective attack upon their core revenue drivers – advertising.

If FTA’s do not receive advertising dollars, then they are unable to provide quality content.

iTV provides the means to deliver “content portals”.  Content portals are interactive domains, such as DVD menus, program sites and other interactive programming.  A content portal separates the content titles assets from the rest of the iTV environment.

Each iTV Channel can cater for as many content portals as the iTV Channel provide wishes to create.  Furthermore, links and overlays can be provided between the iTV content portal and a digital broadcast.  Providing the means to leverage a standard broadcast, with interactive content.

End-Users are able to save content to the Set-Top Box.  If a user saves a broadcast show, then it will appear within the content portals generated by the channel provider.

The technology systems will incorporate an advanced set-top box profile, an internet storage and distribution methodology, a content production and syndication process, metering profiles, as well as a means to facilitate other requirements as made necessary for the implementation of a “Broadcast” level technology solution.

The basis to the technology already exists, and has been ratified by international standards authorities such as the Internet Engineering Task Force (IETF), The European Telecommunications Standards Institute (ETSI), International Organisation for Standards (ISO) and the International Electrotechnical Commission (IEC).

The First Project commercialise these standards via the sales and development of an operational iTV platform.

2.0 Project Plan  May / June 2007:  Deliverables.

Within the next 2 months, The iTV Company Requires the following;

1. Pre-sales contracts with customers for purchasing channels.
2. A PR Campaign
3. Technology Supply Agreements
4. Technology Implementation Agreements
5. A project plan, including technical specifications.
6. Establishment of core staff, and operational management and growth strategy
7. A prospectus, to raise further funds.

The estimated expenditure breakdown is as follows;

Within two months.  The iTV Company aims to be in a position where the company can choose between establishing its own infrastructure or commercialising existing infrastructure.

Description of Deliverables:

The Prototypes will include the demonstration of a Interactive Television Experience, and the opportunities for Advertisers to create interactive spaces and immersive content to sell products and services in connection to TV entertainment.

The Pre-Sales will Include commercial agreements with all three Commercial Free to Air Stations, as well as a range of significant Internet portal players and other “premium content” providers for the purchase of an Interactive Channel.  The agreements will feature a “call to action” that will ensure timely sales within the 2 month window.

Channel Providers will provide an amount up-front that will be put in escrow until the channel has been delivered.

A limited number of STB’s will be Sold.  This may include a preferred partner (such as Nintendo or Teac) who provides the funds required to develop the First iTV Software Image.  The project aims to give away STB’s, on a contracted basis.  A ‘symbolic’ fee for obtaining it, and a mechanism to ensure they use it and a method to ensure they don’t break it and ask for another one.

Technology (Commercialisation Phase 1) will be design and project documentation, and acquisition of Technology licenses.