1. 1. Marketing Research & Social Communication Lesson 7 Concept and Product Tests Ray Poynter 1Ray Poynter, Marketing Research & Social Communication, 2015
2. 2. Agenda 1. Chocolate choices 2. New products and services 3. Conducting Concept Tests 4. The challenges of Concept Testing 5. Homework review 6. Quiz and assignment for next week Ray Poynter, Marketing Research & Social Communication, 2015 2
3. 3. Which of These Will You Try? Ray Poynter, Marketing Research & Social Communication, 2015 3 Later today you will get the chance to choose one, which will you pick? On the Cards supplied, write A or B. A B
4. 4. Key Words Concept: an idea for a new product or service NPD: New Product Development, the process of creating and launching new products and services Purchase Likelihood: How likely are people to buy the product/service Volume or Sales Forecast: Estimate of how many will be sold/bought Screening: Excluding people who are not relevant to the research Quotas: Specification about the sample structure, for example a quota might be 50% Male, 50% Female Ray Poynter, Marketing Research & Social Communication, 2015 4
5. 5. Why Test New Products and Concepts? The range of news products and services that could be created is very large But only some products can be created and launched Developing products requires money i.e. cost Developing Idea A can prevent Idea B from being developed i.e. opportunity cost Ray Poynter, Marketing Research & Social Communication, 2015 5
6. 6. 80% to 90% of New Products Fail Fail = no longer in widespread distribution after 2 years For mass market products If most companies have a failure rate of 85%, then they only get 3 wins from every 20 product launches If MR can help organisations have a failure rate of 75% then 20 product launches will produce 5 wins Ray Poynter, Marketing Research & Social Communication, 2015 6
7. 7. What makes a product succeed? A function of: A. Distribution, how easy is it to buy the product. Generally, % of relevant outlets. B. Advertising, which is a combination of quantity, quality, targeting, and channel. C. Promotional Campaigns, for example point of sale, coupons, trialling, etc. D. Product, how good is it, how appealing etc E. The Unpredictable, other brands, other news, copying/viral activity etc. (AKA as chance / luck) Ray Poynter, Marketing Research & Social Communication, 2015 7
8. 8. Most Product and Concept Tests Focus on the Product Helping design/create a better product (or service) Understanding problems with a new product, and finding solutions Picking which options are most likely to succeed Understanding which elements of the product are most appealing/attractive Ray Poynter, Marketing Research & Social Communication, 2015 8
9. 9. Some NPD Work Looks at Advertising What should the advertising message be? Evaluating advertising for the new product Understanding how new advertising is working (or not working) Assessing advertising in terms of target groups and channels Ray Poynter, Marketing Research & Social Communication, 2015 9
10. 10. Sales Forecasting For example Nielsen/Bases Looks at Distribution Promotions Advertising Product Relies on benchmarks and models Key factors are Distribution and Volume of Advertising Ray Poynter, Marketing Research & Social Communication, 2015 10
11. 11. Typical Concept/Product Test Ray Poynter, Marketing Research & Social Communication, 2015 11 a. Screening: Are these the right people? E.g. buyers of the category b. Show Concept c. Purchase Likelihood d. Feedback about the Concept, e.g. Likes and Dislikes e. Further details, e.g. other concept, variations, pricing alternatives f. Demographics, e.g. region, family size etc.
12. 12. Innocent Drinks Ray Poynter, Marketing Research & Social Communication, 2015 12 Lots of fruit, no sweetners, no colourings, no concentrate, nothing added. From 250
13. 13. Screener Innocent Study Quotas 50% Male, 50% Female Aged 18 to 35 Buy bottled/canned soft drinks at least weekly Ray Poynter, Marketing Research & Social Communication, 2015 13 Are you? 1 Male 2 Female Age? 1 Under 18 [Close] 2 18 to 26 3 26 to 35 4 36 to 45 [Close] 5 Over 45 [Close] How often do you buy bottled/canned soft drinks? 1. Most days 2. At least once per week 3. At least once per month [Close] 4. Less often / Never [Close] As well as closing the study for people who do not match the screener, the quota for Gender needs to be checked.
14. 14. Purchase Likelihood Scale Ray Poynter, Marketing Research & Social Communication, 2015 14 If this product were available in your local shops and vending machines, how likely would you be to buy it? 1. Definitely Not Buy 2. Probably Not Buy 3. Might or Might Not Buy 4. Probably Buy 5. Definitely Buy
15. 15. Likes and Dislikes Ray Poynter, Marketing Research & Social Communication, 2015 15 What did you like about Innocent? Please type you answers in the box. What did you dislike about Innocent? Please type you answers in the box.
16. 16. Further Details Ray Poynter, Marketing Research & Social Communication, 2015 16 What flavours of Innocent would you most like to try? 1. Strawberry 2. Orange 3. Peach 4. Coconut 5. Apple 6. None of these
17. 17. Alternative Purchase Liklihood Five Point scale Seven Point scale 0-10 scale (10 Definitely, 0 means No Chance) Percentage Likelihood, e.g. 0% to 100% Choice sets, e.g. show several products including the test product and ask which they would choose Ray Poynter, Marketing Research & Social Communication, 2015 17
18. 18. Purchase Likelihood Scale Results are not a Sales Prediction People tend to over-claim during the survey Surveys do not take into account Awareness Distribution Whether the products becomes popular If it becomes popular people copy If it does not become popular, people are less likely to buy it, even if they like it Forecast are usually based on modelling, and usually other inputs in addition to the survey Ray Poynter, Marketing Research & Social Communication, 2015 18
19. 19. Testing the Concept or the Communication? Whenever we are testing a new idea we are also testing the communication of that idea. If the concept is great and the communication is poor, then we might think the concept is poor. Analysis of the open-ended comments will often help us understand if the failure is the concept or the communication. Ray Poynter, Marketing Research & Social Communication, 2015 19
20. 20. Qual and Concept Testing The main roles for Qual in the development of new products are: Understanding existing unmet needs Helping create the concept and the message Understanding why a new concept is / is not working Understanding why the messaging is / is not working and how to improve it Usually, qual is not used to indicate whether a product should be launched. The launch decision usually requires numbers (i.e. quant) Ray Poynter, Marketing Research & Social Communication, 2015 20
21. 21. Qual Testing of Concepts Ray Poynter, Marketing Research & Social Communication, 2015 21 http://bit.ly/NewMR_114
22. 22. Chocolate Please choose one of the options on the desk, A or B Ray Poynter, Marketing Research & Social Communication, 2015 22 A B
23. 23. Concept Testing Results Ray Poynter, Marketing Research & Social Communication, 2015 23 Homework Cards Choices A ? (?%) ? (?%) ? (?%) B ? (?%) ? (?%) ? (?%) Total ? ? ?
24. 24. The Challenges of Concept Testing 1. Can we communicate the concept? 2. Can people tell us how they will behave? 3. Are we asking the right people? Ray Poynter, Marketing Research & Social Communication, 2015 24
25. 25. Concept Communication Early stages: sketches, text or animations Later stages: advertising materials and sometimes actual products or prototypes Imagine trying to convey products/services such as: Apple Watch Google Driverless Car Bandalettes Ray Poynter, Marketing Research & Social Communication, 2015 25
26. 26. Bandalettes? Ray Poynter, Marketing Research & Social Communication, 2015 26
27. 27. Can People Predict Their Own Actions? How many times will you eat Sushi in the next two months? Will you buy a red shirt next year? The next time you go to an izkaya, how many drinks will you have? If, the next time you go to a kombini, they are serving Innocent drinks, how likely is it that you will really buy on? Ray Poynter, Marketing Research & Social Communication, 2015 27
28. 28. Are we talking to the right people? Sample specification For bandalettes, females who get chafing when wearing skirts For Innocent Drinks? Sample quality / bias A good sample is one that is similar to the population A bad sample is usually a biased sample Ray Poynter, Marketing Research & Social Communication, 2015 28
29. 29. 1936 USA Presidential Election Ray Poynter, Marketing Research & Social Communication, 2015 29 http://bit.ly/NewMR_115
30. 30. Key Words Concept: an idea for a new product or service NPD: New Product Development, the process of creating and launching new products and services Purchase Likelihood: How likely are people to buy the product/service Volume or Sales Forecast: Estimate of how many will be sold/bought Screening: Excluding people who are not relevant to the research Quotas: Specification about the sample structure, for example a quota might be 50% Male, 50% Female Ray Poynter, Marketing Research & Social Communication, 2015 30
31. 31. Big Picture 1. The key roles of concept testing are: a) Improving new products/services b) Making it more likely they will be successful c) Forecasting the likley sales of the product 2. Decisions to pick options and to launch or not launch a new product are usually made with Quant research 3. Qual research is usually used to help improve new products or to understand quantitative results Ray Poynter, Marketing Research & Social Communication, 2015 31
32. 32. Before Next Lesson 1. Read Chapter 3 of the textbook 2. Complete the online task for Lesson 8 Ray Poynter, Marketing Research & Social Communication, 2015 32
33. 33. Questions? Ray Poynter, Marketing Research & Social Communication, 2015 33
34. 34. Quiz Lesson 7 Ray Poynter, Marketing Research & Social Communication, 2015 34 Please complete the quiz sheet Put your name on the sheet