Flashcards
NPD 2
Cards in this deck (63)
- 1* 3 reasons for concept testing1) Quality - Concept testing needed to get first confirmation that assures the quality product that meets a market need
2) Time - helps save time by gathering info and making decisions that help assure the product will move fast
3) Cost - helps us make cost forecasts - 2What do we evaluate in the three braod stages of concept testing?1) Pre-ideation stage - use PIC and market analysis
2) Post-ideation stage - use initial reaction and concept testing
3) Final pre-development stage - use full screen test on the product's tech spec and marketability before product development - 3Types of ideas to be removed in concept testingMost ideas conflict with focus, goals.objectives, guideline, and/or background of PIC
Ideas conflicting with:
1) tech focus
2) market focus
3) level of innovative ness
4) wrong on other dimension: not low cost, too close to certain competitors - 4* 3 factors to examine in initial reaction testInitial Reaction tes - preliminary, inexpensive assessment of product concept through testing customers' reactions to the selected product concept
1) Market worth: what is the attractiveness of the new product to the targeted customer population?
2) Firm worth: What benefits and competencies do the new product bring to the firm?
3) Competitive insulation: Can the product's advantage be maintained against competitive retaliation? - 53 purposes of concept testing1) Identify the very poor concepts for elimination
2) Estimate the sales or trial rate of the product to project market share and/or revenue/profit
-Use buying intention test: likelihood of purchase
3) Help develop the idea further
-tradeoffs must be made because attribute frequently conflict with each other. - 64 steps of concept testing1) Prepare the concept statement
-States a difference of the product ceoncept and how that difference beenfits the customer or end-user
-Format of statement must be clear, claim determinant attributes, offer familiar code, be credible and realistic. Include drawings, diagrams, and sketches
2) Define the respondent group - stakeholders who provide info and product improvement or purchase likelihood (customers, channel members, lead users)
3) Select the response situation - how to reach respondent group for concept testing and whether to use focus groups or individual interviews
4) Prepare the interviewing sequence: what questions will be answered by respondent group? - 7Format of concept statement1) Narrative
2) drawings, diagrams, sketches
3) models or preliminary prototype
4) virtual reality: 3d images of the concepts. - 8What is the full screen test?The final low-risk evaluation of the product's technical spec and marketability before product development. Tests product concept using various info received from PIC to concept testing.
- 9Why do we need full screen evaluation?to decide whether and how much technical and marketing resources should be devoted to the project.
Evaluate:
1) Technical feasibility (Can we do it?)
2) Commercial feasibility (Will customers buy it?) - 10* What are the 3 outcomes of full screen test?1) recycle: it recycles unacceptable but potential concepts back to concept generation stage
2) Proceed and Rank Order: It rank-orders the good concepts to give priority for development
3) Reject: It rejects inappropriate concepts to prevent "reinventing the wheel" problems - 112 feasibilities to test in full screen test1) Market/Commercial feasibility
2) Technical feasibility - 12What is a Product Protocol and why do we use it? Why do we need it?Written document containing agreed upon points of NPD team. What to produce and what to develop for new product.
Protocol reduces time and costs
Helps answer "what do marketing and technical depts need to work for delivering the product?" Communicates essentials to all players. Helps manage dev time and cycle time. Helps a dev process to be managed and measured by providing requirements and criteria in words. - 13* Difference between core and augmented benefitsCore product - main features. Need, form, and tech are present and there is agreement between the 3.
Augmented product - product or non-product element, enhances visability or awareness. E.g. logos, labels, etc. The product still works without it. Tech service, customer service, etc. - 143 definitions of Quality function deploymentSystem engineering tool to assure the match between customer needs/attributes and engineering specification.
It is the voice of the customers.
set of powerful product dev tools that were dev in japan to transfer the concepts of quality control from the manufacturing process into the NPD process. - 153 major purposes of Quality Functioin Deployment1) meeting market needs by using "voice of customers"
2) effective application of multidisciplinary teamwork
3) the use of a comprehensive matrix (house of quality) for documenting info, perceptions, and decisions. - 163 benefits of QFD1) Reduce design time, manufacturing costs, improve quality while reducing time and costs
2) efficient communication and emphasize the cross-functional coordination
3) Match customer needs with engineering characteristics - 17* 4 stages of QFD conversion process1) House of Quality (I want high print quality)
2) PArts Deployment (need to match parts with design & tech...resolution)
3) Process Planning (need better cartridge)
4) Product Planning (Make finalized product with augmented product - 18*2 elements of HOQ matrixWhats (benefits)
Hows (technologies) - 19* HOQ Peaked roofShows tradeoffs and interactions between Engineering characteristics
(What relations do you expect between resolution and speed of graphics or between speed of graphics and speed of text. - 20* HOQ customer rating HOQ Engineering estimationHow objectively do customers assess customer attributes compared to competitors?
How objectively do engineers assess engineering characteristics compared to competitors? - 21Technical DevelopmentBasic research for product specs, prototype dev, product design and evaluation, engineering, cost forecast, pilot product and manufacturing
- 22MArketing developmenttarget marketing, positioning, marketing mix design, funding, and sales forecasts and budgeting
- 23What is design?Blends form and function, quality and style, as well as art and engineering.
It is the synthesis of technology and human needs into manufactureable products - 24* 5 purposes of having good design1) Aethetics - well designed products are more attractive
2) Product use - easy to use for customers
3) Manufacturability - well designed products saves time and cost, and enhances quality
4) Servicing - well designed products are easy to install, maintain, and repair
5) Disassembly - well designed products are easy to disassemble for recylcing - 25What is Product architecture?The same thing as product platform
Derivative products can be made from the same basic platform as technology, market tastes, or manufacturing skills change
iPod -> iPad mini -> iPod shuffle are from the clicker - 26Benefit of product architectureprovides product platform where customer's needs are transformed into several product designs
- 27Comprehensive prototypeComplete, fully functioning, full size product ready to be examined by potential customers in product use test
Helps determine how well all components fit together - 28Focused prototypeA not fully functioning or developed, but designed to examine a limited number of performance attributes or features
Helps learn how the product works and how well it will satisfy customer needs - 29What is Product use testing?Firms provide end-user a product to check whether it satisfies the customer's needs or to check likeability and purchase likelihood "under normal operating conditions"
Purchase intention is being tested under normal operating condition - 303 other names for product use testing1) MArket acceptance testing
2) Field testing
3) User testing - 31The concept of network externality and and an example.The value of a new product goes up as more people adopt the product.
E.g. credit cards, paypal - 32* 3 types of product use testing1) Alpha test - in-house test by the technology team inside the firm on employees of company
2) BEta test - short-term use test at selected customer sites to test whether the product solves the problems correctly under the normal operating conditions on consumers
3) Gamma test - entire life cycle test of product. The product must solve the customer problems regardless of time spent. - 33Beta test advantages and limitationsAdvantage - Less cost and time
Limitation - short term use test cannot find the long-term danger and risk such as durability. - 34Gamma test advantages and limitationsAdvantage - accurate and thorough
Limitations - too much cost and time - 35Degree of use explanationcan be figured out during use testing. usually radical products need detailed explanations while revisions or modification products only need short descriptions
- 36* 3 mode of test1) Monadic test - respondent tests a single product for a single period of time. (e.g. fax machine)
2) Paired comparison - tests product against competitor (Pepsi vs. coke)
3) Triangular approach - test against two competitors (nike vs addidas vs reebok) - 37What do we do in technical launch?1) Build regular production capability
2) Initial runs
3) Review initial product and process
4) Production scale-up - 38What do we do in marketing launch?1) Complete augmented product requirements
2) Finalize marketing plan
3) Create launch plan
4) Develop and test implementation components
5) Create post-launch management plan - 39What 4 things do we do in launch planning?1) set up up-front strategic planning for product commercialization
2) define strategic purpose and competitive positioning
3) often called marketing plan or marketing program
4) Launch is the most expensive and risky part of NPD processes due to financial commitment - 40What are the 2 levels of decisions on commercialization?1) Strategic launch decisions: made before building the marketing plan when starting product development process.
2) Tactical decisions: marketing mix decisions that define how we implement the strategic launch decision (how intensively we want to use 4P's of marketing? how much to spend?) - 41Strategic platform decisions Strategic action decisionsset overall tones and direction (aggressive or cautious commercialization)
define whom we are going to sell to and how - 42What are strategic givens?1) Corporate, or team decisions made earlier, at PIC or product protocol specification -> hard and expensive to change
-level of innovativeness, time to market, market/tech focus
2) decisions already made in early strategic planning stage to set up the focus
3) they determine the strategic context for marketing plan and thus influence the tactical decisions
Examples: mandatory, specified gross margin to meet: affect funding
-speed-to-market: affects promotional outlays and schedules
-commitment to a given channel: affects distribution plan - 43SPD 2 types of demand1) Primary - demand for a product category
2) Selective - demand for specific brand or product - 44SPD Permanence1) Permanent
2) Temporary - 45SPD Agressiveness1) Aggressive
2) Cautious - 46SPD Competitive Advantage 3 factorsNeed product differentiation in terms of quality, cost, and time
1) Cost efficiency
2) product quality
3) product differentiation
(speed does not matter) - 47SPD Product line replacementHow soon to replace? Avoid cannibalization?
Butt-on (replace immediately for innovators)
Roll-in and roll-out (gradual introduction for imitators) - 48SPD Competitive relationshipWhether to target to compete with major brands
- 49SPD Scope and speed to market entryRapid, fully-committed Vs cautious gradual roll-out (risk involved)
- 50SPD ImageTo what degree do we want to change the existing image of the current products?
- 51Target market decision * What is benefit segmentation?Identify different segments who seeks for different benefits from the products
Product (Joint)
Space map (perceptual map) - 52* What are the 5 groups of product adopters?1) innovators
2) early adopters
3) early majority
4) late majority
5) laggards - 53* What are the 5 characteristics of innovation?1) Relative advantage: how superior is the innovation to other products
2) Compatibility: does it fit with current product usage and en-user activity? (should be continuous from previous versions)
3) Complexity: is it complex to learn how to use?
4) Trialability: How easy can we try? (food vs electronics vs house)
5) Observability: How likely is the product to appear in public place (clothes for work vs sleep) - 54* Diffusion of Innovation 5 charactieristics to determine innovators and innovative organization1) Venturesomeness: Degree of willingness to take risk
2) Social integration: Degree of frequent contact with other people
3) Cosmopolitanism: Degree of interest beyond local news
4) Social mobility: Degree of motivation to move up in status
5) Priviledgedness: Degree of desire to be richer - 55What is positioning? What are the 2 types of positioning?Related to how consumers perceive your product and brand over competing brands and products
Depends on perception of target customer
1) Based on attributes: feature, function, and benefit. (web phone, surfing web + making call, save time, mobile)
2) Based on surrogates: All except for attributes
-endorsement
-experience
-reputation (sony walkman, playstation) - 56Final product configurationThe final product is composed of:
1) core benefits
2) physical product and service sequence
3) packaging
4) pre- post-sale service
5) intangibles (brand, image) - 57What is branding?A brand is any combo of words or symbols or identifiers that makes you think of the company.
- 58What is service mark?Same as a trademark but is for a service.
- 59What is a generic brand?When brand name becomes product name. (rollerblade)
- 60What is a trade dress?Any identifier of a brand. Color, package, etc. (Green-> starbucks, red and yellow-> mcdonalds)
- 61* What is brand equity?The value of a brand above and beyond the value of the product. (If Lotte Cola costs $1 and Coke cost $1.50 for the same product, the brand equity is $0.50
- 62*5 ways that brand equity provides value1) High brand loyalty
2) High brand awareness
3) High perceived quality
4) More/better brand associations
5) Other brand assets - 63What is a brand extension and is it good?Family brands
Good cause it provides sustainable competitive advantage and can be used to sell family brands. Not good because some product categories do not work for brand extensions (ex. frito-lay lemonade, ben-gay asprin)
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- Flashcards on NPD 2, created by Eric Lee on 12/06/2015.
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- Eric Lee
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