New Product Research - Summary
New Product Research - Summary
The first stage in new-product research is concept generation, which involves research first to identify needs and second to identify concepts that will be responsive to those needs.
The second stage is concept evaluation and development, getting relevant people's reactions to concepts. The purpose is usually to help make a judgment as to whether to proceed and to suggest some directions in the subsequent development phase. The exposure is based on a concept description, which should include the elements of the marketing program (such as price) that are critical to concept acceptance.
The third stage is product evaluation and development, where a more realistic product exposure is possible because the product and much of the marketing program have been developed. In particular, the product will be available for use tests, where potential customers try it and provide reactions. Such use tests are used to predict product acceptance and repeat purchase. To predict trial, the laboratory test market, where respondents are exposed to the product and then given the opportunity to make a trial purchase in a simulated supermarket, can be used. A laboratory test market for automobiles used a video simulating word-of-mouth communication and a test drive.
The fourth stage is the test market, where the product and the marketing program actually are implemented in the field. In a sell-in test market the product is sold just as it would be in a national launch. In designing a sell-in test market, the number and identity of test cities, the length of the test, and the criterion measures all need to be specified. In a controlled distribution scanner market (CDSM) test, distribution is prearranged and purchases are monitored using scanner data. Using CDSM markets is cheaper, allows more experimentation, and provides scanner data for a panel of consumers that allows accurate projections of trial and repeat rates. It does not provide realistic tests of the ability of the new brand to gain distribution and retailer support of the introduction, and is restricted to the established CDSM test cities.
The first stage in new-product research is concept generation, which involves research first to identify needs and second to identify concepts that will be responsive to those needs.
The second stage is concept evaluation and development, getting relevant people's reactions to concepts. The purpose is usually to help make a judgment as to whether to proceed and to suggest some directions in the subsequent development phase. The exposure is based on a concept description, which should include the elements of the marketing program (such as price) that are critical to concept acceptance.
The third stage is product evaluation and development, where a more realistic product exposure is possible because the product and much of the marketing program have been developed. In particular, the product will be available for use tests, where potential customers try it and provide reactions. Such use tests are used to predict product acceptance and repeat purchase. To predict trial, the laboratory test market, where respondents are exposed to the product and then given the opportunity to make a trial purchase in a simulated supermarket, can be used. A laboratory test market for automobiles used a video simulating word-of-mouth communication and a test drive.
The fourth stage is the test market, where the product and the marketing program actually are implemented in the field. In a sell-in test market the product is sold just as it would be in a national launch. In designing a sell-in test market, the number and identity of test cities, the length of the test, and the criterion measures all need to be specified. In a controlled distribution scanner market (CDSM) test, distribution is prearranged and purchases are monitored using scanner data. Using CDSM markets is cheaper, allows more experimentation, and provides scanner data for a panel of consumers that allows accurate projections of trial and repeat rates. It does not provide realistic tests of the ability of the new brand to gain distribution and retailer support of the introduction, and is restricted to the established CDSM test cities.
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