The New Product Development Process

1. The New Product Development Process Class 5 Concept Screening

2. Concept Selection / Screening

3. Concept Selection • How can the team choose the best concept (even though the designs are still being developed)? • How can a decision be made that is embraced by the entire team? • How can the “good” attributes of “weak” concepts be identified and used? • How can the decision process be systematic?

4. Selecting Concepts • All teams use some method • first concept considered; external decision; product champion; intuition; voting; pros & cons; prototype & test; decision matrices • Potential benefits of a structured method include: • objectivity in decisions • a customer-focused product • a competitive design • reduced time to product introduction • effective group decision making and coordination • documentation of process

5. Concept Screening & Scoring • Prepare the selection criteria and create the selection matrix • Rate the concepts • Rank the concepts • Combine and improve the concepts • Select one or more concepts

6. Principles & Caveats • Decomposition of concept quality • basic theory assumes selection criteria are independent and thus does not directly capture non-linear relationships between criterion • Subjective Criteria • some criteria (eg, aesthetics) are highly subjective; the team’s judgments on these dimensions should be supplemented with the opinions of representative consumers from the target market (perhaps using prototypes, mock ups) • To Facilitate Improvement of Concepts • the team should make notes of any outstanding (+ or -) attributes, as well as identify any features that might be used to improve the concept

7. Step 1 • Prepare Selection Matrix: What are possible criteria for evaluating your “automotive dining” concepts? • Ability to meet each interpreted need • Manufacturing costs • Market need, growth, size • Compatibility with firm’s other products/culture • Compatibility with firm’s current technology • Market competitiveness (cost to maintain position)

8. Step 2 • Rate the Concepts • Using a reference point • Relative performance • much worse than reference = 1 • worse than reference = 2 • same as reference = 3 • better than reference = 4 • much better than reference = 5

9. Step 3 • Rank the Concepts • Use criteria weights (if multiple segments) • Total score for each concept

10. Next Steps 4. Combine and Improve the Concepts 5. Select One (or More) Concepts 6. Move on to Concept Testing

11. The New Product Theorem • All commercially successful new products are solutions to problems.

12. Development: Product Design

14. What Is Design? • Has been defined as “the synthesis of technology and human needs into manufacturable products.” • In practice, design can mean many things, ranging from styling to ergonomics to setting final product specifications. • Design has been successfully used in a variety of ways to help achieve new product objectives. • One thing it is not: “prettying up” a product that is about to manufactured!

15. Aesthetic Evaluations of Consumer Products • Balance • Movement • Rhythm • Contrast • Emphasis • Pattern • Unity

16. Contributions of Design to the New Products Process

17. Purpose of Design Aesthetics Ergonomics Function Manufacturability Servicing Disassembly Item Being Designed Goods Services Architecture Graphic arts Offices Packages Range of Leading Design Applications

18. Assessment Factors for an Industrial Design

19. Psychological Responses to Product Form Product Form Behavioral Responses • Cognitive • Evaluations • Categorization • Beliefs Aesthetic Evaluations Consumer Response to Product Form (Adapted from Bloch 1995)

20. What is Product Form? • Objective Physical Properties of a Product • Form • Structure • Texture • Color

21. Psychological Responses to Consumer Products • Context • Category Membership • Functionality • What happens in the absence of context? • Design communicates, but does it do so effectively? • How does the design and its context influence: • Consumers’ reactions to the new products • Consumers’ communication strategies

22. What Does the Design Tell You?

23. What Does the Design Tell You?

27. Product Demonstration Provided? No Yes No 16.3 19.0 Category Provided? 18.1 20.2 Yes Range of Scores: 4 to 28 Perceived Product Newness

28. Why does perceived newness matter? • Correlation between perceived newness and product evaluation = .43 (p < .0001)

29. How Do Consumers Communicate Design? • Categorization • “Marketers must proactively consider how they want consumers to categorize a product rather than leaving it to chance.” - Bloch 1995 • Analogies • Tendency to describe the novel in terms of the known • “Looks like” vs. “Works like”

30. Alternative Interpretations Foot Massager Heater Bathroom Scale Lawnmower Toy Slide Projector Record Machine CD Player Sony Boom Box Face Massager Hot Pot Computer Peripheral Grill MP3 Player Optometrist’s Tool Video Recorder

31. Alternative Interpretations Razor Medical Device Massage Tool Computer Mouse Tape Recorder Facial Scrubber Mini-massager Lip Shaver Medical Device Foot Buffer Blood Pressure Tester Arm Pit Odor Remover Portable Heater Mini Oven Humidifier

32. Analogies Used Frisbee UFO Salad Bowl Decoy in a Science Fiction Movie Yo-Yo Pizza Pen Can Opener Pencil Microphone Video Recorder James Bond device Chocolate Bar Flash Light Fold-Up Fan TV Remote Control

33. Analogies Used Hockey Stick Scanner Fish Tank Scanner