Your-Marketing-ToolkitSM
New Product Design
New products are usually key to all long-term profitable and successful businesses. Effective product planning requires a Pervasive Marketplace Awareness based on reliable data. Merely understanding the marketplace is insufficient for effective product design. The information must be engaging and compelling of action through answering provocative what-if questions. Your-Marketing-Toolkits provide the Pervasive Marketplace Awareness and facilitates customer information driven product and business development based on affordable quantitative marketing research. The toolkits are design to provide the “hands-on” testing of ideas.
Your-Marketing-Toolkit is not an end-point creation. It grows, it is customized and it changes to meet the varying needs and distinction of businesses, products and their competitive situations. While the “look and feel” of the toolkits is intended to remain consistent, the set of tools and the information sources will vary. This is particularly true for new product development where the range of features and how they are delivered varies with the product category, industry and to some extent where the products are intended to be sold.
While some products are determined by their inherent structures others have a range of features that must be selected. It is these products and business situation for which product design is critical. The process of design goes beyond just selecting features to be included but also needs to focus on the perceived value to the customer. There are a range of marketing research methods and approaches for measuring customer feature value and preferences. Your-Marketing-Toolkit is designed to handle any number of these techniques. The Toolkit, however, is designed for use of in-depth customer information covering a broad range of issues and therefore the simpler methods of perceived feature value tend to be preferred.
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What is the value of the proposed product
features? Product design is based on the choice of appropriate features that delivers value to the customer. The fundamental question is what are the features that can be built into the new product worth to the customer? Your-Marketing-Toolkit indicates the distribution of those values for individual benefits and bundles. |
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How should customers be grouped for
product design? “The marketing battlefield is in the mind of the customer”. The purpose of product design is to choose the optimum features as valued in the mind of the customer. But for which customers? Your-Marketing-Toolkit provides a number of segmentations approaches including those based on the perceived benefit values. Benefit market segments are selected to identify those customers that have common needs and attitudes towards these products. |
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What
features must the customer have and which do they not want? Feature values is insufficient to determine what should or should not be included in new products. To some customers the features are “Must Have” or “Table Stakes”. Without these features the product will not be considered. On the other hand, some features are viewed as detrimental or dysfunctional for the product and customers tend not to purchase those products. We use a form profiling or “build your own product” exercises to identify those situations. Analytical models are built into Your-Marketing-Toolkit to allow for testing of proposed concepts based on this market information. |
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How much is the customer willing to pay? While feature values can give some indication of the general premium, it does not indicate what actions customers intend to take. Competitive price exercises are intended to capture these decisions from which the price sensitivity and optimum prices can be estimated. The price that maximizes the product earnings to the firm is referred to as the optimum price. This is shown as a dynamic profile of earnings and demand. Note that these curves will change with changes in the competitive product prices as well as changes in the assumed manufacturing and marketing costs. |
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Applications of Your-Marketing-Toolkit · Overall · Branding |
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CDS |
For more information on developing Your-Marketing-Toolkits: Eugene B. Lieb Custom Decision Support, LLC (831)
854-2256 |
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