Product Use Testing
What is Product Use Testing?
Product use under normal operating
Alpha testing: done in-house.
Beta testing: done at the customer site.
Typical goals of beta testing: to determine if
Development Team Management
Options in New Products Organization
1. Functional: work is done by the various departments, very little project focus.
Usually a new products committee or product planning committee.
Does not lead to much inn
What Is Design?
Has been defined as the synthesis of technology and
human needs into manufacturable products.
Design introduces a bold new way of competing. Designdriven innovations do n
Sales Forecasting and Financial Analysis
Why Financial Analysis for New
Products is Difficult
Target users dont
If they know they
might not tell us.
Poor execution of
Public Policy Issues
Public Policy Concerns
Product developers have to be aware of
emerging public policy concerns and consider
their impact on product development and launch.
How do the following affect product decision
Launch Management Concept
Showing Remedial Action
% aware who
As of now
The Launch Management System
Spot potential problems.
What Is Market Testing?
Market testing is not test marketing!
Test marketing is one of many forms of
market testing others include simulated
test market, informal sale, minimarket,
Test marketing is also a much l
Implementation of the Strategic Plan
The Launch Cycle
Tactical Launch Decisions and Actions,
Showing Influences on Demand
Common Myths About Marketing
Planning for New Products
Marketing people make the decisions that constitute a
The technical work is complete when the new item hits
the shipping dock. Marketing people take
Many Ideas Are Eliminated
Before Concept Testing
PIC eliminates most new product ideas even before they
are developed into concepts.
Ideas of the following types are excluded:
Ideas requiring technologies the firm does no
The Concept Evaluation System
The Evaluation System
Cumulative Expenditures Curve
Analytical Attribute Approaches:
Introduction and Perceptual Mapping
What are Analytical Attribute
Basic idea: products are made up of
attributes a future product change must
involve one or more of these attributes.
Finding and Solving Customers Problems
Problem-Based Concept Generation
Problem Analysis: General Procedure
1. Determine product or activity
category for study.
2. Identify heavy users.
3. Gather set of problems associated
Creativity and the Product
Genius Thinking Strategies
Geniuses find many different ways to look at a problem. Einstein, for example, and da
Vinci, were well known for looking at
Opportunity Identification and Selection:
Strategic Planning for New Products
The Strategic Elements
Chapters 1 and 2 introduced the New
This chapter presents both the Product
Innovation Charter (PIC) and the New
The New Products Process
The Procter & Gamble
Starting point: senior management
commitment to new products.
P&Gs Cosmetics business unit had no
clear product strategy, unfocused product
initiatives, and too many customer
OVERVIEW AND OPPORTUNITY
Opportunity Identification and Selection
The Strategic Elements of Product
Why Study New Products?
It is big business billions of dollars annually on