NPP9

Created by renwalsh 

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concept testing

when finalizing the positioning statement becomes a focus of attention
first get confirmation that this will be a quality product
save time by gathering info and making decisions that help assure the product will move through development fast with minimum amount of looping back to correct some problem.

phase where basic marketing strategy is set. you confirmt he target market and settle on the product positioning statement

the biggest cause of new product failure is when

the intended buyer did not see a need for the item, no purpose no value not worth the price

the earliest evaluation that a firm makes is

of itself and its situation

the product innovation charter

eliminates many new product ideas. in advance and without knoing the concepts the firm decides to reject ideas that violate the pic guidelines

eliminates more product ideas than all other evaluations combined.

the pic should result in excluding the following ideas

1. ideas that require technologies the firm does not have
2. ideas to be sold to customers about whom the firm has no close knowledge
3. ideas that offer the wrong degree of innovativeness
4. ideas wrong on other dimensions: not low costs, too close to certain competitors

market analysis

the second evaluation that precedes appearance of the concept is an in depth study of the market area that the product innovation charter has selected for focus.

takes place immediately after the PIC is approved and the depth of it depends on how well the firm already knows the market selected

initial reaction

concepts begin flowing in usually very fast and opinions about them are formed instantly. firms have evolved special techniques to handle this.

quick and inexpensive initial reactions must resist the

bazooka effect

in order to avoid the bazooka effect several provisos apply

1. the idea source does not usually participate in the initial reaction
2. two or more persons are involved in any rejection decision
3. the initial reaction though quick is based on more than a pure intuitive sense

one suggested way for firms to do a rough early screen is to evaluate it one three factors

1. market worth
2. firm worth
3. competitive insulation

market worth

what is the attractiveness of the new product of the new product to the targeted customer population?q

firm worth

is the new product project viewed positively by management?
does this new product project enhance the firms competitencies?

competitive insulation

can the products advantage be maintained against competitive retaliation?

concept testing is mandatory for

makers of consumer packaged goods.

times when concept testing does not hep

1. when the prime benefit is a personal sense.
2. concepts embodying new art or entertainment
3. concepts dealing with new technology
4. when firms mismanage concept testing
5. sometimes customers just do not know what problems they have

prototype concept testing

if it is simple to go from concept to full service description (a form of prototype) then the services firm can proceed to this. much more reliable with a physical prototype

product concept

a claim of proposed satisfactions. the product promise , the customer proposition, and the real reason why people should buy

concept promise is open to four interpretations

1. the producers perception of the features of the new product
2. the consumers perception of the features of the new product
3. the producers estimate of the benefits delivered by that set of features
4. the consumers estimate of the benefits deliveredby that set of features.

complete new product concept

a statement about anticipated product features that will yield selected benefits or problem solutions relative to other products already available.

prescreening process

(concept testing is a part of this) preparing a anagement team to do the full screening of the idea by providing input into the full screen just before technical work.

first purpose of the concept test

identify the very poor concept so it can be eliminated.

the second purpose is

to estimate the sales or trial rate that the product wuold enjoy-- a sense of market share or general range of revenue dollars.

the most common format for purchase intentions is

the classic five point question: how likely would you buy this product if we made it
definitely
probably
might or might not

top two boxes score

the number or percentage of people who definitely would buy or probably would buy combined and used an an indicator of group reaction.

third purpose of concept testing is

to help develop the idea, not just test it.`

a concept statement states a d

difference and how that difference benefits the customer or end user.

format of a concept statement

should make the new items difference absolutely clear, claim determinant attributes, offer a chord of familiarity by relating things familiar to the customer, and be credible and realistic.

presented as a narrative (verbal format), a drawing or diagram, a model or prototype, or in virtual reality.

virtual reality

captures the advantages of the prototype without much of the disadvantages.

commercialized concept statement

present it in a promotional style.
produce more realistic evaluations but risk the bias of good or bad advertising

two issues in the response situation

1. the mode of reaching the respondent
2. if personal whether to approach individually or in a group

real time response survey

combines the best features of focus groups and surveys and has proved useful in screening new consumer product concepts

group support systems (GSS) software

the groups responses can be average and immediately displayed at the front of the room and good concepts can be selected and even improved upon.

simple interviewing situations

state the new product concept and ask about believability, buying intentions, and other information wanted.

benefit segmentation

a firm may identify unsatisfied market segments and concentrate its efforts on developing concepts ideally suited to the needs of these segments

importance ratings

can be used to model existing brand preferences and predict likely preferences for new concepts.

importance map

each customer is indicated by a dot in the figure , according to the importance they attach each of the two attributes. then benefit segments emerge

cluster analysis

puts observations together into relatively homogeneous groups on an importance map
also a data reduction method

joint space map

overlay of the benefit segments on the perceptual map. it allows us to assess the preferences of each benefit segment for different product concepts. can be developed using ideal brand ratings or preference regression

ideal brand

the most direct way to develop joint space maps on each attribute.
uses the factor score coefficient matrix. you convert the ideal brand ratings into factor scores and plot the ideal brand positions directly on the perceptual map.

each cluster represents a segment with its own ideal brand positioned at the center of the cluster.

you expect the brand that is located closest to a segments idweal brand will be preferred.

market share estimation models assume

that the market shares obtained by the various brands are inversely proportional to the squares of the distance of that brand from the ideal point

experience seekers

while performance and safety are important they really care about hauling lots of stuff

pragmatic

they mostly care about practical transportation

performance seekers

they seek out high perfromance cars onky

affordable performance

they care about performance but also practicality

safety conscious

only the safety benefit comes out important

preference regression

is another method that can be used to identify the optimum combination of attributes desired by the market. do this to relate the factor scores of each brand to the ranking of brands. the relative sizes the regression coefficient we obtain give us an indication of the relative importance of each factor.

ideal vector

the regressiosn line plotted on the perceptual map. visually represents the optimum proportion of attributes desired by this market.

conjoint analysis and concept testing

its extremely useful in concept testing because of its ability to uncover relationshios between attributes and can also identify benefit segments

BASES provides three levels of concept testing studies

1. pre bases
2. bases 1
3. bases II

pre-BASES

concept test that provides rough sales predictions

BASES I

more advanced concept test that incorporates media selection decisions, levels of consumer and trade promotion, and extent of distribution to estimate awareness and availability, has forecasting accuracy range of 25%

BASES II

combines the concept test with a consumer taste test and post taste test responses and achieves an accuracy range of 20%

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