Product Exam Outline 2

Product Exam Outline 2 - Product Strategy Exam #2 Concept...

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Product Strategy Exam #2 Concept Testing CLASS In the framework of concept evaluation, concept testing helps evaluate profitability - favorable initial reaction? o From whom? - Fits with strategy? - Technically feasible? o How do you know? - Profitable? o What are you doing to estimate that? Concept testing goals - eliminate poor concepts - estimate sales (A-T-A-R) - improve concepts There are many choices in setting up a concept test (concerned with who sell it to some benefit a broader population) - concept testing is getting feedback on a concept from a significant number if relevant people o the concepts are described in words, pictures, “virtual reality”, or in some cases prototypes o questions ask about concept perception (uniqueness) and attractiveness (purchase intent questions) - decide – what to make in setting up concept testing o whom to ask o how to ask them (in person “mall intersept”, phone, Internet (data auto collected), etc.) o how to describe the concept (perception and attractiveness) o whether to use a neutral or persuasive tone o whether to include the price o etc. - want a concept statement that most closely mirrors their exposure to it (Advertising) - if price different than consumer may expect (high or low) important to include it) but if similar to competitors then you can leave out typical types of questions - purchase intent o look at the “top-two-boxes” score, the percent of people who say they “definitely would” or “probably would” buy - frequency of purchase or usage - perceptions of the product o uniqueness o likeability
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- pricing questions Apporaches to pricing questions - ask about purchase intent at a given price point - ask, “how much would you pay?” - ask for several price points o at what price to cheap to have doubts of quality o what price inexpensive/bargain o what price is getting to expensive o what price to expensive not consider buying it Burger king ex - 3 types of questions o Unpriced purchase intent o Priced purchase intent o Uniqueness - Want uniqueness and high purchase intent BOOK Pros and cons of upfront evaluations - biggest cause of new product failure – intended buyer did not see a need for the item (no purpose, no value, not worth the price) - quality – get first confirmation in concept testing that this will be a quality product - time – save time gathering info and making decisions - cost – lower costs by 1) avoid rising cumulative expenditure curve (best time to get off a loser is at bottom of curve 2) elimination of many losers 3) info gathered here helps make cost forecasts - marketing – set the basic marketing strategy on firm ground 1) confirm target market (user whose needs we are trying to satisfy) 2) settle on a product positioning statement (how the new item will be better than others already out there) Does concept testing always make sense? -
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Product Exam Outline 2 - Product Strategy Exam #2 Concept...

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