Chp2: Concept Evaluation

Question 1

Phases of Concept Evalution

Answer 1

1. Initial Screening: Which concepts should be tested with regard to their marketability?
2. Marketability analysis: Which market opportunities do the different product concepts have?
3. Economic feasibility analysis: Which economic success is to be expected
   from the different product concepts?
4. Realization

Question 2

Methods of Concept Evaluation

Answer 2

1. Scoring models
2. Concept tests
3. Test market simulation
4. Test markets
5. Rollouts

Question 3

What is concept testing?

Answer 3

Concept testing is] a variety of marketing research-based approaches employed to
asses the marketability of a product or a service idea prior to its actual development

Question 4

Types of concept testing?

Answer 4

1. Presentation of product appearance: ex. verbal and visual (virtual reality) presentation, product attribute presentation with a prototype
2. Qualitative design: group discussions (focus groups)
3. Quantitative design: (online) product test panel (user testing), A/B Testing, Landing Pages, Conjoint based concept tests

Question 5

What is a prototype?

Answer 5

A prototype is an early artifact, or draft, of your idea. It’s a preliminary version of your
product you can use to test theories and make quick progress. The main goal of a
prototype is to validate (or invalidate) key assumptions

Question 6

2 types of prototyping

Answer 6

1. No code prototyping
2. rapid prototyping

Question 7

What is no code prototyping?

Answer 7

Before hiring and engaging costly technical developers, build a (simple) prototype to testkey assumptions of the product concept (esp. whether potential customers are able tograsp the intended benefit/value)

ex. mcdonalds comes up with the perfect kitchen set up

Question 8

Example of prototyping tools (primarily for digital products)

Answer 8

1. App builders
2. Databases and information storage
3. Add ons
4. Websites and landing pages

Question 9

What is A/B n testing

Answer 9

Randomly split traffic between two
(or more) versions (of a website,
prototype)  A (Control)  B (Treatment) to find out which is better

Question 10

what is Test Market Simulation

Answer 10

Simulation of the “awareness-trial-repeat purchase process” in order to
 forecast long-term market success
 identify sources of sales success
 gain diagnostic information about product positioning
 evaluate alternative marketing strategies

Question 11

Trial Repeat Model

Answer 11

Forecast of the long-term market share M of a new brand ():
M () = T * S

Estimation of the long-term trial rate T:
T = F * K * D + C * U - (F * K * D) * (C * U)

Question 12

What is a Test Market

Answer 12

A test market is a controlled launch which is conducted in a limited
but representative part of the marketplace

read slide 242.

Question 13

Rollouts

Answer 13

Also described as “tiered marketing“ or “limited marketing“

First, a product is introduced in a limited market, then, step by stepthismarket is enlarged