I just ran through this presentation by Simon Law (which I was pointed to by Russell and Pink Air). There is no substitute for sound observation, and this slide seemed to make a whole lot of sense to me.
Insights are a good (probably the best) route to great ideas, but there so rare that it might be more interesting to start looking for brand ideas right away...
Check out the discussion on Pink Air and do follow the links to the good stuff.
Oh, and this one's pretty important too:
One last thing (because the link is too important to be left in the comments on Pink Air, even thought they are a valuable source themselves): Jeremy Bullmore's 'Why is a good insight like refrigerator?'.
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