Concept Development And Testing Marketing Essay

Concept Development And exam Marketing EssayConcept Development and Testing A two-phase stage in the culture of a upstart crossway in which potential buyers be presented first with the idea or description of the new merchandiseion (concept testing) and later with the product itself in final or prototype form (product testing), in order to obtain their reaction. http//www.coolavenues.com/know/mktg/cc.php3The most important firearm in this step is predicting the in get along with and expenses of the product and to do market research, predicting who will buy the product. A product concept is an elaborated version of the idea expressed in meaningful customer terms. During this stage, the product ideas that form the new product implementation list must be defined more precisely JOURNAL OF intersection lay BRAND MANAGEMENT, VOL. 5 NO. 6 1996 Here is a general view of how we incorporate research and creative concept into a concept development engagement. http//www.powerdecisions .com/consult-concept-development.cfmhttp//www.powerdecisions.com/images/Cpics/BrandPositioningFlow.gifWe have to clearly define every part of the product to determine the cost of the product. We need to look at raw materials, labour, fixed cost, variable be, costs to sell and possible return of investment. There are multiple ways to determine the selling charge of your product.Pricing based on costThis is the firsthand basis for determining the cost expense and selling price of a product. All the costs of producing the product are added together with a margin of pelf, to come up with a price. The consumer or market will eventually determine the price of the product and not the producer. Possible competitor prices should also be interpreted into account.Pricing based on demandThis is the opposite of the cost based pricing. Target costing is demand based. It means designing a product so that is satisfies costumers and meets the profit margins desired be the firm. Target costing m akes the final price an input to the product development process, not an outcome of it. You estimate the selling price people would be willing to pay for a product and extract a profit margin. HANDBOEK 8. Famous brands that use this demand based pricing are Sony and Isuzu.Pricing based on competitionWith this pricing method you look at what all other possible competitors are doing. The price of your own product can be higher, lower or identical to that of your competitors. This method depends on quality and customer loyalty. Price leadership is the procedure by which one or more dominant firms peg down the pricing practices that all competitors in an industry follow. HANDBOEK 8 BL 393Pricing based on breaking-evenEven before selling the product you determine how many you would need to sell to make a profit. This quantity that should be sold to break even would be seen as a sales goal. Break-even analysis is the process used to determine profitability at various levels of sales. Th e break-even point is the point where revenues from sales equal all costs. The formula is as follows,Break-even point (BEP) = Total fixed costs (FC)Price of one unit (P) -Variable cost (VC) of one unitThe effect of this on the product is immense. It will determine the price of the product and the amount of materials needed to produce the product. The price of the product will determine the quantity that the consumer will buy which will determine the revenue and the profit made from the product. In this step of the production process the product can be a success or a failureFixed costs are the costs that remain constant no matter how many products are produced or sold.Variable costs are the costs that change stipulation the amount of products sold.Target groupYou need to determine the target group. With this product it is all golfers old and young amateur or professional.The next step is to do market testing.A prototype of the product is produced and given to the target group of the consumer and asked to test the product in a basic environment and give their flavor on the quality, size packaging and price. If the reception of the product is positive and the manufacturer is sure that nothing about the product can be improved the product is ready for the next step. Marketing and commercialization. The effect of the opinions of the target group on the product could lead to the restart of the entire procedure and the product could need to be refined or completely redesigned.The importance of team work and the amount of time needed on each of the different steps as set by this table.BronneCopyright 2000-2010 Zebra Networks10 April 2010Online Available. http//www.coolavenues.com/know/mktg/cc.php3Copyright 2000-2010 Power Decisions Group10 AprilApril 13, 2010Online Avalable http//www.powerdecisions.com/consult-concept-development.cfmBookAuthorBoek naamCopy right dingGedeelteJournalRama Yelkur and capital of Minnesota Herbig, (Bingham and Quigley, 1989) JOURNAL OF PRODUCT BRAND MANAGEMENT Global markets and the new product development process VOL. 5 NO. 6 1996 page 39 holy person Martnez-Sanchez, Manuela Perez-Perez and Pilar de-Luis-Carnicer European Journal of InnovationManagement Teleworking and new product development Vol. 9 No. 2, 2006 page 206, 208