Purchase Solution

Marketing Research Can Use New Product Evaluation

Not what you're looking for?

Ask Custom Question

As stated in Stadelman, William & Cotteril, Owen J (1995), product managers who screen product ideas to be developed into products, pretty much follow the following sequence:

An 'expert' team analyzes the ideas from technological, manufacturability, and Voice of the Customer standpoints (VOC includes web site claims and reports from the sales-force and technical assistance staff).

The ideas that pass 'expert judgment' in terms of technology, manufacturability and compliance to Expressed Customer Needs go thru additional technical analysis by the product development department. If the PD Dept. states that - yes, the idea is feasible from a technical standpoint, - then the product concepts are analyzed in terms of economics (costs to make the product and investments required).

In parallel, a market analysis is done: unit sales to be expected in how many years and at what price.

Finally, the financials are calculated and priority ranking is done based on those parameters. It is very important to use multiple criteria because the highest NPVs will overcome the others. This is risky due to NPV Volatility. In other words, the bigger developments will throw out the smaller ones, but because they are bigger, they are also more difficult to sell, hence the higher NPVs found in larger projects are inherently more volatile than for smaller developments.

Show how market(ing) research can be used to assist the use of any 2 of the following new product evaluation tools:

Compliance to Expressed Customer Needs/Claims (Y/N)
Fit with Strategic Imperatives (Y/N)
Feasibility of development concept (H/M/L)
Manufacturability (Y/N)
Time to develop the engineered concept (H/M/L)
Needs for Qualified Internal Resources (H/M/L/N)
Needs for Plant & Equipment (P&E) Investments (H/M/L/N)
Expected Contribution Margin (H/M/L)
Net Present Value (NPV)
NPV Volatility Estimate (H/L)
Internal Rate of Return
Payback time

Use the Yahoo and Google search engines to find new product ideas to demonstrate the marketing research concepts and frameworks for analysis.

Purchase this Solution
Solution Summary

The solution discusses marketing research that can use new product evaluation.

Solution Preview

Determining Compliance to Expressed Customer Needs and Net Present Value of a Product
Through Marketing Research

Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem (Burns and Bush, 2003).
This paper intends to determine the extent to which the needs of the target customers are complied with through a product offering (e.g. a Brand of car) by a company. It will also further determine how marketing research would complement with Net Present Value method in evaluating product performance as indicated by its contribution to the overall company performance.
Specifically, the following research questions will be answered through this study:
1. What are the expressed needs of target customers of cars in terms of:
1.1 Functionality,
1.2 value for money,
1.3 status symbol, and
1.4 long-term usage?
2. Are there significant differences in the expressed needs for a car of the target customers when grouped as to: age, size of family, occupation, socio-economic status?
3. To what extent does the company's product comply/meet the expressed needs of its target customers?
4. What is the level of cash flows that are contributed by the product that is being studied to the ...

Solution provided by:
Elisa Valdez, PhD
Education
  • Bachelor of Science in Business Administration, University of the Philippines
  • Master in Business Administration, Saint Mary's University
  • Doctor of Philosophy in Education, University of the Philippines
  • Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
Recent Feedback
  • "Excellent information thanks for the input"
  • "Thank you"
  • "Very thorough and informative. Thank you."
  • "Good response. Very detailed"
  • "This solution is excellent. Thank you"
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

View More Free Quizzes
Related BrainMass Solutions

  • Marketing Intelligence and Research at Nike

    An evaluation of current organization research and evaluation management within the company. c. An evaluation of current marketing intelligence systems for feedback. d. Recommendations for feedback and evaluation strategies.

  • Marketing Research in the Development of Kudler Fine Foods

    With the use of marketing research, the company will effectively develop new strategies' and tactics for it (Marketing Research, 2007).

  • Kudler Channel and Pricing Strategies for Greece and Chile

    Thus, the Kudler, Fine and Food should conduct effective marketing research and evaluation of competitor's channel and pricing strategy to introduce a new product in the market of Greece and Santiago, Chile and develop a competitive advantage for the

  • Delaware Company Research and Development

    ANSWERS IAS 38 states that all research costs must be charged to expense while development costs can be capitalized only after technical and commercial feasibility of the assets for sale or use have been established.

  • New Product Concepts

    Marketing How does one generate new product concepts? Is it done through internal research and development activities? Can it be accomplished by surveying the customers?

  • Business Research Applications

    Where could the company use more research? Research may be further conducted for the following purposes: 1. Sustainability of product acceptance/rejection of the company's new product.

  • essential evaluation criteria for marketing messages

    An organization can use a website, brochures, ads, or even seminars to the targeted group. All are great ideas. The marketing message is evaluated on how it is presented, distributed, and how consumers remember it.

  • Marketing Plan of Software Companies

    Marketing Objectives - To increase the awareness about the new product in the market so that the awareness levels reach to at least 40 percent of the research organizations.

  • Marketing Plan for Arimount Deodorant Products

    481745 Create a Comprehensive marketing plan for new deodorant product Creating a comprehensive marketing plan, using one of the product scenarios below. You will choose one scenario, and use it throughout the entire course.

View More Related Solutions