Unit 15 Concept Developing and Testing Components of A.T.A.R. Model (A – Awareness, T – Trial, A – Availability, and R – Repeat Purchase  Buying unit  Target market  Current market  Aware  Available  Trial  Cumulative trial rate

Concept Generation  Problem based Ideation o Problem solving methods  Attribute based ideation  Concept statement  Test design  Data collection  Interpret purchase intention data  Frequency of purchase measures  Overall product diagnostic measures  Product attribute diagnostic measures  Respondents classificatory measures Data Analysis for Concept Testing  Bench marks

Unit -16 Physical Development of the Product Product Architecture  Modular Architecture o Chunks implement one or a few functional elements in their entirety o The interaction between the chunks are well defined and are generally fundamental to the primary functions of the product  Integral Architecture o Functional elements are implemented using more than one chunk o A single chunk implements many functional elements

Implication of the Architecture  Product Change o Upgradation o Ad-ons o Adaptation o Wear and tear o Consumption o Flexibility o Reuse  Product Variety  Component Standardization  Product Performance  Manufacturability  Management of Product Architecture

Industrial Designing in Product Development  Utility  Appearance  Ease of Maintenance  Low Costs  Communication Importance of Industrial Design  Ergonomic needs o Ease of use o Ease of maintenance o User interaction o Novelty of user interaction needs o Safety in usage  Aesthetic needs o Product differentiation o Pride of ownership, image and fashion o Motivation to industrial designers

Process of Industrial Design Development  Generating Information about customer needs  Conceptualization of product to meet the customer needs  Product concept refinement  Concept screening and selection  Developing Control Drawings  Integrating different functions like, engineering, manufacturing, and vendors in the design development Management of the Industrial Design Process  Technology driven products  User driven products  Technology and user driven products

Product Prototyping  Physical – tangible artifacts  Analytical – product is an intangible  Comprehensive – implement most of the attributes  Focused – one or few of the attributes Use of prototypes  Learning  Communication  Integration  Milestones

Principles of prototyping  Analytical prototypes are more flexible  Physical prototypes intended to investigate purely geometric issues Concurrent Engineering – concurrent design, which is simultaneous

Unit 17 Pretest Marketing and Test Marketing Assessor Model – It estimates the market share using two models, first the preference model and second, trial repeat mode. If both the models predict similar forecast, it increases the confidence of the decision maker. Preference Model – The preference ratings are converted to choice probabilities using the parameters Trial Repeat Model – It provides an independent estimate of market share, which is used for comparison.

Test Marketing  To obtain the best estimates of sales volume and market share of the new product  Marketing mix elements like distributor support, advertisement response, and some sales promotion efforts can be evaluated only in the test marketing  Only opportunity to evaluate the entire marketing strategy  It is like a dress rehearsal, time to streamline manufacturing, selling, and delivering the product to consumers

Issues in Test Marketing  Designing test market  Duration of test marketing  Design of experiments Data Collection from the Test Markets  Store audits  Consumer survey  Diary panel  Analyzing test market data

Unit 18 Product Launch Types of New Product  New for the Mankind  New for the Country  New for the Industry  New Product in a Product Category  New Product in the product class  New Product for the Company

New Product Launch – The Marketing Plan Typical Marketing Objective  Unit or rupee value sales of the product by the year  Market share by the year  Product profitability in terms of percentage margin and payback Situation Analysis The Market Analysis  Market overview  Segment Overview  Consumer Overview  Competition Overview The Internal Analysis  The sales force  Promotional set-up  Distribution system

Defining and Selecting the Target Market  Segment Attractiveness  Ease of access  Degree of fit  Competitive situation  Relative Advantage  Profitability Product Strategy and Positioning  The product benefit  Product positioning

Pricing the New Product  Reasonable profit  Reasonable and continues market share  Reasonable unit wise sales  Skimming pricing  Penetration pricing Factors affecting the new product’s price  Demand for the new product  Costs  Marketing and sales objectives

Promotion of the New Product High Price Low Distribution Policy Promotion HighLow High Skimming A Low Skimming B High Penetration C Low Penetration D

Significance of Promotion  Awareness  Interest  Evaluation  Trial  Adoption Budgeting for Promotion  Budgeting for advertisement  Budgeting for sales promotion  Budgeting for Publicity Plan for Sales Expectation Plan the Launch Schedule Co-ordinate with the Distribution Manager Inform the Sales Personnel