Value of Research It guides you towards the target!

Concept Testing A representation of a product or service is presented to current or potential customers to gauge their reactions Used to: – Eliminate poor concepts – Help develop the concept – Estimate sales or trial rate of concept (Crawford and DiBenedetto, 2010)

Concept Testing Advantages Saves time and money Helps determine need for product Can use one of several formats to suit target audience and objectives of test Provides insights into thinking – Segments and positioning can be developed in tandem with the concept (Crawford and DiBenedetto, 2010)

Concept Testing Disadvantages Challenging when used with new technology Consumers may not recognize that a problem exists

Product Use Testing Testing the end-users’ experience of a proposed product solution. Also known as: – Field testing – User testing Use of the product in a live (or semi-live) customer environment (Crawford and DiBenedetto, 2010)

Product Use Testing Testing the end-users’ experience of a proposed product solution. Also known as: – Field testing – User testing Use of the product in a live (or semi-live) customer environment Differing levels of complexity, integration, and production expectations may be tested Alpha tests Beta tests (Crawford and DiBenedetto, 2010)

Product Use Testing Advantages Real environments can uncover product strengths and weaknesses other methods miss Early seeding of the market Used in selected environments to test rollout plans Helps to answer the questions: – Are we ready? – Is this a market-winning product?

Product Use Testing Considerations Set clear objectives for product use test Select user audience for test carefully Determine how to contact user audience Determine whether blind or branded tests are appropriate Use supervised or unsupervised testing as needed Test with product alone, with one other product, or with two other products Select time period for test

Market Testing Testing a new product and its entire marketing plan—together! Categories of Market Testing Methods – Pseudo sale – Controlled sale – Full Sale (Crawford and DiBenedetto, 2010)

Market Testing Advantages Leads to solid forecasts of dollar and unit sales volume Provide feedback to help improve launch components – what needs to be enhanced Provides opportunities to test service and warranty processes (Crawford and DiBenedetto, 2010)

Market Testing Disadvantages Determine whether to conduct market testing by considering: – Cost of test – Whether information needed dictates testing – Nature of marketplace – Competitors’ plans (Crawford and DiBenedetto, 2010)

Research by Activity Innovation Process ActivityResearch Managed Front End Identify Problem Understand Problem Secondary Research Voice of the Customer Phase 1: Conceive Identify Possible Solutions Voice of the Customer Phase 2 & 3: Plan & Develop Test Proposed Solutions Concept Testing Phase 3 & 4: Develop and Qualify Pick Best Solution Alpha Testing Phase 4: Qualify Build and Test Solution Beta Testing Phase 4 and 5: Qualify and Launch Launch and Market Solution Market Testing

MFE or PhaseResearch MethodsPurpose or Rationale A -Secondary research -Voice of the Customer - Identify market opportunities B -Customer visits -Ethnographic -Surveys - Understand customer needs - Generate ideas, platforms or concepts C -Concept testing - Alpha testing -Focus groups - Create and test prototypes D -Product use testing -Beta testing -Customer visits - Test product suitability -Validate new product designs E-Pseudo, Controlled, Full sale - Test launch plan - Measure new product success Research Methods Framework