Marketing Management, Millenium Edition - epiheirimatikotita.gr

Managing New Products: Development to Commercialization 167example, customers of a proposed truck may want a certain acceleration rate (CA).Engineers turn this into the required horsepower and other engineering equivalents(EAs). QFD allows firms to measure the trade-offs and costs of satisfying customerrequirements; it also improves communication among marketing, engineering, andmanufacturing. 11Next, the firm uses QFD to develop one or more physical versions of the productconcept. The goal is to find a prototype that customers believe embodies the keyattributes described in the product-concept statement, that performs safely under normaluse, and that can be produced within the budget. The rise of the World Wide Webhas driven more rapid prototyping and more flexible development; prototype-drivenfirms such as Yahoo! and Microsoft cherish quick-and-dirty tests and experiments. 12When the prototypes are ready, they are put through rigorous functional tests andcustomer tests. Alpha testing means testing the product within the firm to see how it performsin different applications. After refining the prototype further, the company movesto beta testing, enlisting customers to use the prototype and give feedback on their experiences.Beta testing is most useful when the potential customers are heterogeneous, thepotential applications are not fully known, several decision makers are involved in purchasingthe product, and opinion leadership from early adopters is sought. 13Consumer testing can take a variety of forms, from bringing consumers into a laboratoryto giving them samples to use in their homes. In-home placement tests are commonwith products ranging from ice cream flavors to new appliances. For example,when DuPont developed its new synthetic carpeting, it installed free carpeting in severalhomes in exchange for the homeowners’ willingness to report their likes and dislikesabout the carpeting.Market TestingAfter management is satisfied with functional and psychological performance, theproduct is ready to be dressed up with a brand name and packaging, and put to a markettest. The new product is now introduced into an authentic setting to learn howlarge the market is and how consumers and dealers react to handling, using, andrepurchasing the product. For example, idealab! is in the business of launching newInternet ventures (eToys was one). Before starting CarsDirect, a Web-based car buyingservice, idealab! put up a live Web page and monitored on-line market reaction. In justone evening, the site sold four cars—results that hinted at the product’s potential forstrong market acceptance. 14Consumer-Goods Market TestingIn testing consumer products, the company seeks to estimate four variables: trial, firstrepeat purchase, adoption, and purchase frequency. The company hopes to find all ofthese variables at high levels. In some cases, however, it will find many consumers tryingthe product but few rebuying it. Or it might find high permanent adoption but lowpurchase frequency (as with gourmet frozen foods).The major methods of consumer-goods market testing, from the least to themost costly, are:➤➤Sales-wave research. Consumers who initially try the product at no cost are reofferedthe product, or a competitor’s product, at slightly reduced prices, as many as threeto five times (sales waves). The company notes how many customers select itsproduct again and their reported level of satisfaction.Simulated test marketing. Up to 40 qualified buyers first answer questions about brandfamiliarity and product preferences. These buyers are invited to look at