name the points of product evaluation?
- idea –> opportunity eval
- once developed a bit –> concept eval
- market testing @ launch –> customer eval
multiple points of eval ensure success with less overall expenditure
explain the expenditure curve
more high tech products have more front loaded expenditures because of high initial investment
consumer products have back loaded expenditures meaning more spending happens closer to launch
how to evaluate if a risk is worth it?
risk payoff matrix
ways to reduce risk
- think about potholes
- know customer reactions early on
- use surrogate questions
- avoid big failures or miss big successes
- adopt risk strategies
- eliminate risky projects
- reduce risk to acceptable level
- transfer development risk
- have a contingency plan
product concept definition
idea that identifies an opportunity in the market. idea can be turned into a testable statement
what aspects make a product concept statement
- form –> what the product will look like
- benefit –> what value/advantage it gives
- technology –> method/tech used to deliver benefit
what makes a good product concept statement?
- clear determinant attributes
- why is this product different or superior?
- related to something familiar
3 purposes of product concept testing
- do potential users care
- will potential users buy
- what features/benefits will turn the concept into a promising product
when interviewing prospective stakeholders, you need to…
- consider all of them
- explore their current practices
- see if they like/support/get the new product
- see if they have intention to purchase it
intention to purchase question
Q: how likely are you to buy a product like this if we made it?
A. definitely, probably, might/might not, probably not, definitely wouldn’t
how to measure repeat purchases?
- customer experience with the product
- customer satisfaction
- likelihood to recommend
Possible question to ask: assuming you like it, how often are you to buy it?
what are 3 considerations for product concept
- how to describe the product (marketing focused or straightforward)
- ask key questions
- consider all stakeholders and customer segments
key questions to ask customers when looking at product concept
- how do they currently solve the problem
- what other products do they use
- how do they feel about the price
what is the ATAR model based on?
diffusion of innovation
what does ATAR stand for?
Awareness, Trial, Availability, Repeat
explain Awareness in ATAR
percentage of the buying population is informed well about the product
explain Trial in ATAR
percentage of buying unit that is aware and is likely to purchase
explain Availability in ATAR
once they decide to purchase, they can access it easily
explain Repeat in ATAR
percentage of buying unit that is likely to repeat purchases
what data is the ATAR model based on?
top 2 boxes only (will definetly and most probably)
definite and probable purchases
how do you know what is most important in your product?
- refer to what attributes/features customers find most important
- identify gaps between what they want and what they currently get
- overlay with brands –> compare existing gaps in market with existing brands
