ides

Idea
generation

Commercialization Idea
screening

NEW
PRODUCT
Test DEVELOPMENT Concept
marketing development
PROCESS

Product Mktg strategy

development development
Business
analysis
 • The systematic search for
new-product ideas
• Sources: customers,
ides

Idea competitors, suppliers, and

generation distributors
 STRATEGIES
1. Problem inventory
ides analysis
Idea • A method of obtaining new
generation ideas and solutions by focusing
on problems.
• Example:
A. Weight: fattening, empty
calories
B. Thirst: does not quench,
makes one thirsty
C. Taste: bitter, bland, salty
D. Preparations: too many
pots, too much trouble
 STRATEGIES
2. Analytical attribute
ides approach
Idea • Attribute listing
• Conjoint analysis
generation
 STRATEGIES
3. Focus groups
ides
• Groups of individuals providing
information in a structured
Idea format.
generation • Moderator leads a group of 8-14
participants through an open, in-
depth discussion instead of just
asking questions to solicit ideas
• Also an excellent method to
initially screen ideas
• e.g. “warm and comfortable
slipper that fits like an old
shoe”
 STRATEGIES
4. Brainstorming
ides
• 4 rules to follow:
Idea A. No criticism
B. Freewheeling is
generation encouraged: the wilder
the idea, the better
C. Quantity of ideas is
desired
D. Combinations and
improvements of ideas
are encouraged
 STRATEGIES
5. Brainwriting
ides
• Written brainstorming
• Created by Bernd Rohrbach
Idea
• Usually consists of six
generation members

6. Brain walking
• Members walk around the
room, adding to others’
ideas.
 STRATEGIES
7. Crowdstorming
ides
• Target market generate and
Idea validate ideas.
generation
8. Worst possible idea
• Inverted brainstorming
• Produce bad ideas
 STRATEGIES

ides

Idea
generation
 • Screening new-product
ideas in order to spot good
ideas and drop poor ones
as soon as possible
Idea • To estimate the sales or
screening
trial rate that the product
would enjoy.
• To develop the product
concept.
 • Developing an attractive
idea into a product concept
– a detailed version of the
Concept new-product idea stated in
development meaningful consumer
& testing terms; then
• Testing the new-product
concepts with a group of
target consumers to find
out if the concepts have
strong consumer appeal
 • Concept Testing is based on
the concept statement:
• A verbal and or pictorial
Concept statement of a concept that
development is prepared for presentation
to potential buyers or users
& testing
to get their reaction prior to
its being implemented.
Product concepts are
followed by prototypes,
advertising concepts by one
of several forms of semi-
finished production.
 When Concept Testing may
not be helpful:
1. When prime benefit is to a
Concept personal use. Ex. Warhead
development gum
2. When concept embodies new
& testing
art and entertainment. Ex.
Ferris wheel; The movie Junior
tested poorly but sold well.
3. When concept embodies some
new technology that users
cannot visualize. Ex. Hair
mousse.
 • Designing an initial
marketing strategy for a
new product based on the
Mktg strategy product concept
development
 • Reviewing the sales, costs,
and profit projections for a
new product to find out
whether these factors
Business satisfy the company’s
analysis objectives
 • Developing the product
concept into a physical
product (prototype) in
Product order to ensure that the
development product idea can be turned
into a workable product
 • Prototype
• The first output of the
technical development.
Product • Checked against the
development protocol statement that
guided its development
and perhaps sent to the
marketplace for a
confirmatory or product-
use test.
 • Testing the product and
marketing program in more
realistic market settings.
Test
marketing
 • Product-use Test
• To use a product under
normal operating
conditions.
Test
• Ex. A consumer puts a
marketing
tire on a car and drives
it.
 • Decisions to be made in a
Product-use Test
• Who should be in the
user group?
Test
• How should we reach
marketing
the user group?
• Mode of contact: Mail
or personal
• Individual contact and
group contact
 • Decisions to be made in a
Product-use Test
• Location: Should the
test be conducted at the
Test
point of use (home,
marketing
office or factory) or
should it be conducted
at a central location
(test kitchen, shopping
center, theater or van)
 • Decisions to be made in a
Product-use Test
• Should you disclose
identity?
Test
• How much explanation
marketing
should be provided?
• How should the test be
conducted?
• Monadic test: the respondent
tests a single product for a
period of time.
• Paired comparison: use of the
product is interspersed with
that of a competitive product.
 • Decisions to be made in a
Product-use Test
• Over what time period
should test be
Test
conducted?
marketing
• Who should do the
product use test?
• What should be the
form of the product
being tested?
 • Introducing a new product
into the market
• Highest costs incurred here:
Commercialization • To build or rent a
manufacturing facility
• To spend on advertising,
sales promotion and other
marketing efforts; packaging;
labelling

• Some factors to consider:

• Introduction timing
• Introduction place