【正文】 hips, morphological analysis, reverse assumption analysis, new contexts, mindmapping, and lateral marketing Idea Screening A pany should motivate its employees to submit new ideas to an idea manager. Ideas should be written down and reviewed each week by an idea mitteeA) The pany then sorts the proposed ideas into three groups: 1) Promising ideas.2) Marginal ideas.3) Rejects.B) A DROPerror occurs when the pany dismisses an otherwise good idea.1) It is extremely easy to find fault with other people’s ideas.Figure shows the Forces Fighting New IdeasC) A GOerror occurs when the pany permits a poor idea to move into development and mercialization.D) An absolute product failure loses money, because its sales do not cover variable costs.E) A partial product failure loses money, but its sales cover all its variable costs and some of its fixed costs.F) A relative product failure yields a profit that is less than the pany’s target rate of return.G) The purpose of screening is to drop poor ideas as early as possible.1) The rationale is that productdevelopment costs rise substantially with each successive development stage.H) Most panies require newproduct ideas to be described on a standard form that can be reviewed by a newproduct mittee.I) The executive mittee then reviews each idea against a set of criteria.J) The surviving ideas can be rated using a weightedindex method. Table shows the forces fighting new ideas.K) As the idea moves through development, the pany will constantly need to revise its estimate of the product’s overall probability of success using the following formula:Overall Probability Probability of Probability ofProbability = of technical X mercialization X economicof Success pletion given technical success given pletion mercialization Review Key Definitions here: DROPerror, GOerror, absolute product failure, partial product failure, and relative product failureMANAGING THE DEVELOPMENT PROCESS: CONCEPT TO STRATEGY Attractive ideas must be refined into testable product concepts. A) A product idea is a possible product the pany might offer to the market.B) A product concept is an elaborated version of the idea expressed in consumer terms.Concept Development and Testing A product idea can be turned into several concepts.A) Questions to ask include:1) Who will use this product?2) What primary benefit should this product provide?3) When will people consume this product? B) The answers to these questions will form several concepts:1) Concept 1.2) Concept 2.3) Concept 3.C) Each concept represents a category concept that defines the product’s petition. Figure (a) shows a product positioning map.D) Next, the product concept has to be turned into a brand concept. Figure (b) shows a product positioning map and brand positioning. Concept Testing Concept testing involves presenting the product concept to target consumers and getting their reactions. The concepts can be presented symbolically or physically. A) In the past, creating physical prototypes was costly and timeconsuming. B) Today firms can use rapid prototyping to design products.C) Companies are also using virtual reality to test product concepts.D) Concept testing entails presenting consumers with an elaborated version of the concept.E) After receiving information, researchers measure product dimensions by having consumers respond to the following:1) Communicability and believability.2) Need level.3) Gap level.4) Perceived value.5) Purchase intention.6) User targets, purchase occasions, purchasing frequency.F) The respondents’ answers indicate whether the concept has:1) A broad consumer appeal.2) What products this new product petes against.3) Which consumers are the best targets.Conjoint Analysis Consumers’ preferences for alternative product concepts can be measured through conjoint analysis, a method for deriving the utility values that consumers attach to varying levels of a product’s attributes. A) Respondents are shown different hypothetical offers formed by bining varying levels of the attributes, then asked to rank the various offers.B) Management can identify the most appealing offer and the estimated market share and profit the pany might realize. Figure shows samples for a new spotremoving cleaner.C) The marketer now uses a statistical program to derive the consumer’s utility functions for each of the five attributes.1) The higher the utility, the stronger the consumer’s preference for that level of attribute.2) Clearly, this consumer sees price and package design as the most important attributes.D) When preference data are collected from a sufficient sample of target consumers, the data can be used to estimate the market share any specific offer is likely to achieve, given any assumptions about petitive response.E) The most customerappealing offer is not always the most profitable offer to make. F) Conjoint analysis has bee one of the most popular conceptdevelopment and testing tools. Review Key Definitions here: category concept, positioning map, and rapid prototyping Figure shows utility functions based on conjoint analysis.Marketing Strategy Following a successful concept test, the newproduct manager will develop a preliminary strategy plan for introducing the new product into the market. A) The plan consists of three parts:1) The first part describes the:a. Target market’s size.b. Structure.c. Behavior.d. Planned product’s positioning.e. Sales.f. Market share.g. Profit goals in the first few years.2) The second part outlines:a. Planned price.b. Distribution strategy.c. Marketing budget for the first year. 3) The third part describes the:a. Longrun sales and profit goals.b. Marketingmix strategy over time.Business Analysis After manag