MKT 319- New Product Research

New-Product Strategy Development, Idea Generation, Screening and Evaluation, Business Analysis, Development, Market Testing, Commercialization

7 Stages of New Product Process

Advantages and Disadvantages of Simulated Test Marketing

Advantages= less expensive, faster, restricts access to competitors. Disadvantages= not as reliable or accurate due to controlled setting.

Idea generation

Customer/Supplier Suggestions, Observation, Qualitative Research (Focus Groups, In-Depth Interviews, & Ethnography)

Conjoint Analysis

Determines relative importance consumers attach to attributes and the utilities they attach to the levels of attributes. Respondents are presented with a stimuli and asked to evaluate the stimuli in terms of their desirability

Simulated Test Market

Firm creates a shopping environment & notes how many consumers buy the new product and competing products. Provides measure of trial and the effectiveness of promotion. Researchers can interview consumers

Test Marketing

Involved testing new product performance in a limited area of a national or regional target market. Provides estime of product performance in the respective country or region. (Expensive, time consuming, open to competitive sabotage)

Controlled Test Markets

Panels of stores that have agreed to carry new products for a fee. Less expensive & faster than standard. Competitors gain access to new product.

Standard Test Markets

Small representative markets where the firm conducts a full marketing campaign. Uses store audits, consumer and distributor surveys, & other measures to gauge product performance. Results are used to: forecast national sales & profits, discover product problems, fine-tune the marketing program.

Screening and Evaluation

Surveys, Concept Tests (Qual. Research & Conjoint Analysis)

Challenges of Standard Test Markets

cost, time, competitors can monitor the test, competitor interference, competitors gain access to new product before introduction.