FEASIBILITY STUDY - 103308
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PRODUCT/SERVICE
ANALYSIS
Dr. Karthik Mohandoss
CHAPTER – III
LEARNING OUTCOMES
By the end of this chapter you will be able to know about
Definition of product research.

New product research process.

Need Identification techniques.

Test marketing.

Pricing research.
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
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Definition
Product research is defined as marketing research that
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yields information about desired characteristics of the
product or service. The characteristic of a good or service
that will satisfy a recognized need or want, is usually
identified. It implements the data collection process,
analyzes the results and gives the findings and their
implications.
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NEW PRODUCT RESEARCH PROCESS
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NEW PRODUCT DEVELOPMENT
New product development (NPD) is the complete
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process of bringing a new product to the market till its
consumption & feedback from the end user of the
business chain through the systematic procedure &
parameter. It may be a Consumable product, service or
idea.
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NEW PRODUCT RESEARCH PROCESS
Generation of new product concepts

Evaluation and development of those concepts

Evaluation and development of the actual products

Testing in the context of the marketing program
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NEW PRODUCT RESEARCH (CONTD.)
1. Need Identification
Perceptual maps

Social and environmental trends

Benefit structure analysis

Product users

Focus-group interviews

Lead user analysis
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
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Perceptual Maps
Marketing research technique in which consumers views about a product are
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traced or plotted (mapped) on a chart. Respondents are asked questions about
their experience with the product in terms of its performance, packaging, price,
size, etc. Theses qualitative answers are transferred to a chart (called a
perceptual map) using a suitable scale (such as the Likert scale), and the results
are employed in improving the product or in developing a new one.
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Benefit Structure Analysis
BSA determines what specific benefits and characteristics are desired
by consumers for a particular product or service. It identifies
Lead user analysis
Leading
buyers
who
are
the
early
adopters
of
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perceived deficiencies in what is currently provided.
new methods, products, and technologies. Their needs and choices
usually portend the needs and choices of the general market,
and
of
provide
significant
opportunities
innovative
for
introduction
products.
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TEST MARKETING
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DEFINITION
Test marketing is an experiment conducted in a field
real-life buying situations, without the buyers knowing
they are participating in an evaluation exercise. Test
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laboratory ( test market) comprising of actual stores and
marketing may last from few weeks to several months.
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Testing Techniques
Blind use test
about the test that might lead to bias in the results is concealed from the
tester. If both tester and subject are blinded, the trial is a double-blind trial.
For example, when asking consumers to compare the tastes of different
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A blind or blinded experiment is a test or experiment in which information
brands of a product, the identities of the product should be concealed –
otherwise consumers will generally tend to prefer the brand they are familiar
with. Similarly, when evaluating the effectiveness of medical drug, both the
patients and the doctors who administer the drug may be kept in the dark
about the dosage being applied in each case.
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Test Marketing
Designing the sell-in market test

Selecting the test cities

Implementing and controlling the test

Timing

Measurement

Costs of a test market
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PRICING RESEARCH
One of the hardest decisions an organization has to make is how to price its
generate profits. Price the product too high and potential customers never
turn into paying customers.
Methods used for pricing

Gabor and Granger method

Multi-brand choice method

Research for Profit-oriented Pricing

Research for Sales-oriented Pricing
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products. Price a product too low and you may not cover your costs or
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Gabor and Granger method
The Gabor Granger method is a method to determine the
price for a new product or service. It was developed in the
Widely recognized
and used in the marketing
industry is the
Gabor-Granger
approach.
science
It
is
a
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1960s by Clive Granger and André Gabor.
convenient and practical pricing technique to determine the
highest price a respondent is willing to pay for a given
product.
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Multi-brand choice method
Marketing of two or more similar and competing products by the same
firm under different and unrelated brands. While these brands eat into
some advantages as a means of (1) obtaining greater shelf space and
leaving little for competitors products, (2) saturating a market by
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each others' sales (see cannibalism), multi-brand strategy does have
filling all price and quality gaps, (3) catering to brand-switchers users
who like to experiment with different brands, and (4) keeping the
firm's managers on their toes by generating internal competition.
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Profit-oriented Pricing
A profit-oriented pricing strategy involves setting prices for your products
that will guarantee you'll make money on each sale. You determine your cost
some strategies and issues you should review before setting prices in this
manner. While profits are the goal of any business, setting prices based on
profit goals can present some problems for your business.
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for manufacturing each product, then add a percentage for profit. There are
Sales-oriented Pricing
They feel that the overall pricing objective should be based on using a sales
orientation. This philosophy is based on the idea that increasing sales will
provide a better financial position than increasing profits
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Dr.Karthik Mohandoss
Thank You
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