lecture 6

• Paired comparison


  Use of the test product is interspersed with that of a competitive product
• Triangular comparison


  Similar to paired comparison but with two competitive products versus one test product (or two test products versus one competitor)
• Use tests


  • Some require a single product experience
  • Some require use over short periods of up to a week
  • Some require use over extended periods of up to six months
• Batch product


  Product from the initial production runs
• Pilot plant product


  Product from the pilot production facility
• Final production product


  Product from the full-scale production facility
• If the firm will employ just one type of use testing, then the final production material is far and away the best
• Batch product should be used alone only if the production process is prohibitively expensive
• Verbal rating scale


  Used to record basic like/dislike data
• Preference score


  Respondent is asked to compare the new product with another product
• Semantic Differential scale


  Used to gather descriptive information about the product that covers any and all important attributes
• 70 percent figure is a norm for the Semantic Differential scale
• Launch


  The moment that management decides to release the product to the market
• Requirements for an effective market launch plan

  • The market launch plan is treated as a key part of the new products process
  • Planning for the market launch begins early in the new products process
  • The market launch plan is based on good-quality market intelligence
  • Sufficient human and financial resources are devoted to the market launch
  • Salespeople, technical support people, and other customer service people who are engaged in the product launch should be part of the new product team

  
• Technical launch


  Learning from design and field testing while ramping up production output
• Technical launch activities


  1. Initial production runs

  2. Testing

  3. Reviewing and improving the product and process

  
• Market launch


  Selecting launch activities that match the type of buying behavior

  
• Early in the new products process, when the PIC was being developed, a basic set of strategic goals was outlined, and these goals have led the new products team up to this point

  
• Strategic platform decisions


  Decisions that set overall tones and directions
• Strategic action decisions


  Decisions that define to whom we are going to sell and how
• Tactical launch decisions


  Marketing mix decisions such as communication and promotion, distribution, and pricing that are typically made after the strategic launch decisions and define how the strategic decisions will be implemented

  
• New-to-the-world product


  The firm must develop an entry strategy with the emphasis on stimulating primary demand for the product category
• New entry or line addition in an established market

  The emphasis is on stimulation of selective demand (drawing market share away from competition)
• Permanence options


  • In to stay
  • In to stay if we meet our goals
  • Temporary
• Aggressive entry


  Seeks lots of attention early on, so most of the promotional dollars are spent early, and most of the resources go to getting early trial
• Cautious entry


  Firm is uncertain about something important—maybe product performance, maybe competitive reaction, maybe sales force capability to deal with a new type of market
• Balanced aggressiveness


  Firm is not trying to be pugnacious or slinking
• Product line replacement


  The technologically strongest firms cannibalize their own products (and production processes) with newer, higher-performance versions
• Micromarketing


  Using retail scanners and sales information systems to target very small market segments with unique purchase patterns
• Micromarket segments


  • Loyalists
  • Rotators
  • Deal-selectives
  • Price-driven
  • Store brand buyers
  • Light users
• Relative advantage


  How superior is the innovation to the product or other problem-solving methods it was designed to compete against
• Compatibility


  Does it fit with current product usage and end-user activity?
• Complexity


  Will frustration or confusion arise in understanding the innovation's basic idea?
• Divisibility (trialability)


  How easily can trial portions of the product be purchased and used?
• Communicability (observability)


  How easy is it for the user to see the benefits of using the product?
• Adopter categories


  • Innovators
  • Early adopters
  • Early majority
  • Late majority
  • Laggards
• Product positioning statement


  Buyers in the target market should buy our product rather than others being offered and used because: ____________
• Trademark


  The accurate term for what identifies products
• Trade dress


  A wide range of product identifiers including brand name, packaging, product color, or décor
• Brand equity


  The value that a brand name provides to both the firm and its customers