Product Planning Chapter 6. Product Development Charter Review Five general approaches to evaluate...

Product Planning

Chapter 6

Product Development Charter Review

• Five general approaches to evaluate concepts

1. Charter review

2. Concept testing

3. Scoring models

4. Snake plots

5. Financial analysis

• Can be utilized in combination with each other

Charter Review

• Evaluates the concept against the criteria established in the product development charter

• “Pass/Fail” approach

Concept Testing

• Incorporates customer opinions (very important!)– What works or doesn’t work– Strengths and weaknesses observed– Likelihood to buy– Suggestions for improvement

• Different types of concept tests– Narrative, picture/sketch, prototype, virtual

reality image

Scoring Models

• Different criteria and scores for each criteria observed

• Usually a cut-off level for concepts to proceed to next stage

Snake Plots

• Extension of scoring model approach

• Plotting multiple unweighted scores

• Looking for profile that is most appealing

• Example page 98

Financial Analysis

• ATAR model and ECV model generate real rough numbers

• ATAR is awareness, trial, availability, and repeat purchase

• ATAR does not factor in competition or up-front R&D costs

• ECV is expected commercial value

• It is a loose net present value approach