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Concept Testing “ Will the Dogs Eat the Dog Food?”

Concept Testing “ Will the Dogs Eat the Dog Food?”. Testing the Product/Service Concept. What is it? Validating the value proposition How to do it? Talk to customers. Why talk to customers?. Who is the customer?. Medical Market. Private Clinics. Specific Private Clinic.

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Concept Testing “ Will the Dogs Eat the Dog Food?”

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  1. Concept Testing“Will the Dogs Eat the Dog Food?”

  2. Testing the Product/Service Concept • What is it? Validating the value proposition • How to do it? Talk to customers

  3. Why talk to customers?

  4. Who is the customer? Medical Market Private Clinics Specific Private Clinic

  5. Types of Customers • Buyer • End-users • Partners • Joint development partners • Licensee • Re-seller or distributors • Important to recognize layers of value propositions • Value to the buyer or partner • Value to the end-user or customer Same or different

  6. Defining Customers and Segments: First Pass* *modified from So what, who cares, why you? by Wendy Kennedy

  7. Concept TestingPlan of Attack

  8. Overview • Clearly define the product or service concept • Identify the type of information needed • Identify who has the information • Select the best tool(s) for gathering the information • Summarize/analyze information

  9. Importance of product definition • Clearly defined product concepts elicit clear responses • Defining the product concept • State the problem that your product is meant to solve • Offer supporting product attributes (features) to add credibility to the product’s ability to solve the problem • Link features to benefits • “Rapid file access will increase throughput 2-fold” • “The lighter weight will reduce fuel costs by 30%” • Note: For some, concept testing may be more exploratory • Using customer input to help shape/refine product concept

  10. Step 1: Identify questions to be answered • What are the most pressing questions I need to have answered? • Value-network questions • Who are the customers with this problem? • Are they solving the problem today? How? • How significant is the problem? What is the economic impact? • What is it’s impact on others?

  11. Step 1: Identify questions to be answered (cont) • Product-specific questions(value proposition) • How relevant is the product to the customer’s needs? • What is the perceived value? • Need-to-have vs nice-to-have? • What is the price sensitivity? • How unique is the concept? • Are there any certifications or approvals prior to purchasing? • What is the purchasing process? Who is involved? • How products evaluated? • Industry/Market Information • Trends in the market • Current/Emerging competitors • Regulatory issues

  12. Step 2: Where to get the information? • Primary Sources (people) • Product-specific information • Examples • One-on-one interviews • Focus groups • Quantitative surveys • Field tests • Secondary sources (reports) • Broad market information • Examples • Internet searches • Market research reports • Analyst reports • Polls and surveys

  13. Step 2b: Who to talk to? • Customers • Buyers • End-users • Partners • Quasi-customers • Thought leaders • Early adopters • Industry experts • American Society of Association Executives Gateway: find industry associations to contact for info. • ThomasNet:list of industrial trade associations Defined by market segment(s)

  14. Step 3: Choose the information gathering tool

  15. Step 4: Analyze Information • Look for consistent, significant trends • Possible outcomes • Confirm and support concept feasibility • Need more information • Modify concept based on valid feedback • Identify a brand new opportunity • No-go

  16. Interviews

  17. Interview Tips • Interviewees • Spend time up front finding the right people • Leverage the network (personal, coaches, inventors) • Associations • The Questions • Be specific, when necessary • “If you were to use this product today, how much time would you save each week?” • Be general, when necessary • “What trends over the next 10 years will most affect your buying decisions” • Be quantitative • “On a scale of 1 to 10, with 1 being low and 10 being high, how would you rank the value of this product” • Ask quantitative questions across all interviews

  18. Interview Tips II • The Interview • Prepare questions ahead of time and create worksheet • Keep it short and simple • One person leads the interview • Useful to have several people attending • Ask good follow up questions to explore and probe • “Why do you say that?” • “Could you elaborate on that point” • Be on the lookout for great quotes • “Every doctor I know would use this” • “This is one of the most innovative products I’ve seen in years” Balance flexibility with consistency • Questions may need to be changed after first several interviews • But you need consistent questions across interviews to spot trends.

  19. Surveys

  20. Onilne Survey Tools • Google Docs • Survey Gizmo • Survey Monkey • Zoomerang • Qualtrics (MBAs) • Many more…

  21. Getting Respondents • Your network • Email • Facebook • Craigslist • Online tools offer distribution for fee • Is it worth $100 to test your idea? • Facebook ad

  22. Examples

  23. Example 1 • Fitness machine for children • “BowFlex for Kids” • Combines strength training web portal to track progress and win prizes • Target markets • Parents with competitive children • Middle schools • Gyms and fitness centers

  24. Market/Customer Definition

  25. Questions to be answered • Do middle school parents and coaches care about strength training? • What would motivate a parent to purchase the product? • How do middle schools fund athletics? • Which of these three market segments should be targeted first? • Which sports would be the best fit? • Are there any children’s safety regulations around the product?

  26. Who to ask? • Parents • Friends and family • Coaches • Local soccer league • Middle school coaches • School principles • Gyms • Local gyms and fitness centers • YMCA • Industry experts • Product safety issues

  27. Example 2 • Biocompatible gel for time release for drug delivery • Application: subcutaneous injections of cortisone • Time release provides 2x longer effect • Target market • End user: orthopedic doctor • Development partners • Cortisone suppliers and manufacturers

  28. Market/Customer Definition

  29. Questions to be answered • What is the average number of shots per patient? Per doctor? • Is increasing the effect two-fold significant? • Are orthopedic doctors the only ones who give cortisone shots (primary care physicians)? • If the product results in fewer shots, can the doctor charge more? If not, is there a disincentive? • What symptoms trigger cortisone shot? • What partners have the competencies needed? • Regulatory expertise • Reimbursement experience

  30. Who to ask? • Orthopedic doctors • UNC Hospitals • Other doctors • Sports medicine • Geriatrics • Local sales rep for cortisone • Elderly

  31. Homework • First pass at defining target market(s) • Name of market(s) • Definers • Descriptors • Context • Questions to be answered • Identify at least 10 questions to be answered • Prioritize them • Sources of information • Identify the people to be interviewed • Match the questions with the interviewees

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