TRIO

BY, POONAM DESHMUKH VIDYA KUMBHAR LALIT PATIL GIRISH PATIL MAYUR DUDHAT

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big Question: Is the idea worth considering?

How is it done?

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big Question: Is
the idea compatible with company objectives, strategies and resources?

How is it done?

Product idea rating device.

The purpose of the screening is to drop the poor ideas as early as

Product success Relative weight Product score requirements (a) (b) Unique/Superior products .40 .8 .6

Product rating (c = a*b) .32 .18

High performance .30 to cost ratio Financial support .20 Lack of strong competition .10

.7 .5

.14 .05

Total 1.00 .69 Rating scale:.00-.30 poor; .31-.60 fair; .61-80 good . Min acceptance rate .61

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big Question: Can we find a good concept consumers say they would try? Product idea can be turned into several concepts Consumers do not buy product ideas but product concepts Eg: Instant Nutrition and Taste powder

How is it done? Concept testing involves presenting the product concept to target customers and getting their reactions

It involves presenting customers with an elaborate version of the concept Researchers then measure product dimensions: Communicability and believability Need Level Gap Level Perceived Value Purchase Intention User targets, purchase occasions, purchasing frequency

- Who is the user? - What is the benefit? - When will it be consumed

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big Question:

Is it cost- effective & affordable? Its a plan to introduce a new product in the market

How is it done? The plan is divided into three parts. 1. Describes target market size ,structure & behaviour;positioning and sales, market share and profit goals. 2. Includes price, distribution strategy and marketing budget. 3. Describes long run sales and profit goals and marketing mix.

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big Question: Will this product meet our profit goal? Check the proposals business attractiveness Management needs to prepare sales, costs and profit projections to see if they satisfy company objectives

How is it done?

Estimating Sales Depends if the product is a one time purchase, infrequently purchased or frequently purchased product Managers have to estimate: First time sales Replacement sales Repeat sales as well as First time sales Estimating costs and profits five year projection of sales, costs and profits, break even

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big question: Have we got a technically and commercially sound product?

Transformation from a blue print to a physical product. Higher investment compared to previous stages.

How is it done? QFD (Quality function deployment) Physical prototypes. Virtual reality technology - Boeing Also focus on psychological factors mouthwash products. Testing: Alpha Beta - DuPont

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big Question: Have product sales met expectations? Introduction of the product into an authentic setting to understand market,consumers and dealers reaction to the product Is it necessary? How much should be done? - High InvestmentHigh Risk - Reduced if the company is under time pressure (seasons) or

What kinds of market testing to be done? Sales Wave Research Simulated Test Marketing Controlled Test Marketing Test Markets For Business Goods Introduction of product at trade shows Industrial products tested in distributor and dealer displays

Marketing Strategy Concept Development and Testing Idea Screening Idea Generation

Business Analysis Product Development

Test Marketing Commercialization

Big question: Are product sales meeting expectations? Largest cost.

How is it done? Timing First entry Parallel entry Late entry

Geography Local (Loop mobiles) Regional (Paramount airlines) National International