Notes

Good morning/good afternoon everyone!, My name is (reporter 1) and my name is (reporter 2) and welcome to our report!, come join us in this spectacular journey on how to conduct concept development in building a business, Not only that, there is a short quiz after this session, Join us as we embark in this lesson as all of you will learn something on the way.
(reporter 1) before we enter our lesson, let's see if you already have an idea about the topic, or in short I will conduct a pre test, there will be only 5 questions, ready? GO!
1. What is concept development?, brief your answer
2. Give at least 1 process of concept development
3. By performing customer research, give at least one way of conducting a research
4. Give at least one P in marketing strategy
5. give at least one way of performing test marketing
Done?, great! now please check your answers on your own. Remember, Honesty is the best policy
answers*
1. Help customers' evaluate a product
2. either
* Brainstorming to create a potential product or services
* Performing customer research
* Estimating the market potential for your product or service concept
* creating a prototype for the product
* Devise a marketing strategy
* perform test marketing
* evaluate results
3. either
*social media
*VoC (Voice of the Customer)
*Surveys
4. either
*Place
*price
*product
*promotion
5. either
*standard test marketing
*controlled test marketing
*simulated test marketing
if You got 5, well done! you know everything about the topic, if you got 3, good job!, there is still a lot to learn of you got none, its ok!, for sure you will get a perfect score after this lesson. Lets begin with the lesson, shall we?
What is concept development, Concept development helps you to evaluate your customers' reactions to your product or your service before it gets launched, in other terms, its a structured way to develop an idea to see if the customers like the idea and to determine whether the customer is willing to buy it
Here is the process for concept development:
THE CONCEPT DEVELOPMENT PROCESS
* Brainstorming to create a potential product or services
* Performing customer research
* Estimating the market potential for your product or service concept
* creating a prototype for the product
* Devise a marketing strategy
* perform test marketing
* evaluate results
- this concept development process will help you prove the market feasibility of your product. As part of the process, you will use customer surveys to help you understand the best product features and ones that need improvement. You can also discover how much customers will pay for your product or test new concepts.
BRAINSTORMING TO CREATE A POTENTIAL PRODUCT OR SERVICES
- Brainstorming is one of the popular marketing strategies that creates ideas that must be focused on what the customer wants, while understanding that only one or two will be tested as a viable concept. There are many brainstorming techniques, from mind-mapping and storyboards, to having everyone write down their ideas in 10 minutes or less. This type of brainstorming can be done in person or on an online chat tool. The goal is to get as many ideas as possible. Sometimes, brainstorming may happen in everyday events such as VelcroⓇ. VelcroⓇ was invented by a Swiss engineer after a walk in the woods made him wonder why burrs stuck to his pants. Under a microscope, he found the “hooks” of the burr stuck to the “loops” in the fabric of his pants. He used the hook and loop idea to create this well known product that is used in thousands of ways in the USA.
PERFORMING CUSTOMER RESEARCH
- Customer research is the process of discovering who your ideal customer is, what their problems are, and how much they will pay for your solution. Creating buyer personas, or fictional profiles of customer challenges and opportunities, are helpful to visualize who your customer is and what they want and need.
Ways of conducting a research:
- By social media, you may look up for trending now or other articles which customers leave reviews
- Surveys where customers vote for what they want to buy whether they all have an age and gender difference, you may ask them questions like:
*Does our new product interest you?
*Which product feature do you like the best - or worst?
*How does the product compare to similar brands?
*How much would you pay for the product?
*What feature would you change?
*Would you buy the product for your household members?
- Voice of the Customer (VoC) are one of the techniques that companies use to determine what their customers need. By collecting customer feedback, customer retention rates soar to 87% as opposed to only 56% for firms who don’t collect VoC feedback.
ESTIMATING THE MARKET POTENTIAL FOR YOUR PRODUCT OR SERVICE CONCEPT
- A simple competitive analysis will help you understand what the other market's strategy of use. This survey will help you what other market's difference from your store, those difference makes you unique. If customers are willing to buy your products because they are unique, you have a competitive advantage. Your competitive analysis will help you find gaps in the market. These are customer problems that exist, but are not being solved. The concepts from your brainstorming session might fill those gaps and result in a new product.
TIP! - You can also take advantage of market trends. Do customers have new needs because of the weather, changing economic conditions, celebrity endorsements, or a baby boom? There are many factors that will affect your market so pay close attention to new trends.
CREATING A PROTOTYPE FOR THE PRODUCT
- A prototype is like a simple and tangible forms of your idea, often to test and validate your idea. They may not even be the entire product, just a part of it, like a box, a handle, or a beta version of a software app. Prototyping is a valuable part of your product development process, allowing people to see, use, touch, and feel the product instead of just imagining it. Prototyping is not only for Objects only but it can also be visual or in a software program where you can insert a 3D figure of your product or typing it so that the customers can already tell how the prouct will be seen in real life.
THE 4 P'S OF MARKETING STRATEGY
*Product - Your brand, product or service offered, and packaging
*Price - what price you will sell it for, including discounts and your payment policy
*Place - which sector you will sell it and what channels of distribution will you use.
*Promotion - your advertising and sales promotion plans
DEVISE A MARKETING STRATEGY
- Test marketing is one of the example of devising a market strategy. Test marketing gets your product in front of customers to capture their reaction before you go to a full product launch. The goal is to understand the market acceptance of a product. As part of the concept development process, the goal of test marketing is to understand the general market viability of your product or service. It differs from the product development process where the goal is to test the features of the product.
there are three ways to perform test marketing such as:
*standard test market
- With this approach, companies have their products placed in stores in a smaller test market and then track sales for their product.
*controlled test market
- often performed by a marketing agency like ACNielsen, will place the product in select stores and then monitor those store’s customer purchase transaction data.
*simulated test market
- is where a panel of consumers provide first-hand feedback about products. The simulated market is quicker and not as extensive as the standard or controlled test markets.
here is a video on how to devise a market strategy:


PERFORM TEST MARKETING:
performing a test will make sure that your product is a hit for everyone but making sure before selling it may be the best option. there are 8 variables on how to ensure that your product is safe to use. These variables detail how the product solves the customer’s needs, helping you to better market your product.
*convenience
*usability
*quality
*functionality
*performance
*price
*value
*experience
EVALUATE RESULTS
- A survey is launched and Over 95% of product launches fail. The concept development process helps companies improve their chances of clearly understanding their concept’s potential as a product or service to reduce the chances of failure. Even the biggest companies, who spend millions of dollars for their market research, can fail in concept testing. Just ask Coke, Pepsi, Starbucks, Apple, Microsoft, and other large companies who have spent millions on products that didn’t sell. Concept development surveys are a cost-effective and valuable way to test your product concept to customers and broader markets. Concept development surveys can help you:

*Capture objective opinions on your product features.
*Help optimize your product by eliminating features you don’t need.
*Test the effectiveness of your brand influence on your concept.
*Evaluate your concept against your competitors.
*Check the effectiveness of existing products.

Online surveys have the advantage of accessing a large audience, increasing the number of respondents. Questions are flexible and can be tailored to your specific concept testing needs. Objectivity is another benefit of online surveys overcoming any subjective bias that may exist within the team. The focus on the survey is the customer and their input to their concept. The result is to give you a clear perspective of your concept’s potential. Powerful data analytics are included in survey results and summarize the number of respondents and demographics. Survey results reports are easily read and interpreted by concept development and product development teams.