Concept & Testing

1Dr. V. Winarto

GATE

GATE TOPIC DEADLINE

1 Business Idea Evaluation 20 September

2 Understanding the market – Research Plan

04 Oktober

3 Understanding the market - Research Report

01 November

4 Product Concept Test – Research Design

15 November

5 Product Concept 06 Desember

6 Prototyping Plan 20 Desember

Prototyping & Testing

Value PropositionConcept TestingBus. & Product

Product Solution

ProductPrototype(Producer)

Attributes(Producer)

Apa yang ditawarkan : Core Product, Service, Experience, Ambience

Product Mix: Single / Multiple

Product Testing

(Consumer)

Hard(physical)

Soft(style, beauty)

Alpha TestControlled

context

Beta TestCustomer’s context

(complete set)

Elements(partial)

Complete set

Gate 5

Gate 6

Gate 6+3

Product & Product AttributesAmerican Marketing Association

• Product: A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value

• Product attributes: The characteristics by which products are identified and differentiated. Product attributes usually comprise features, functions, benefits, and uses 4Dr. V. Winarto

Product – Attributes /Characteristics - Quality

• Any product can be completely defined by its attributes / characteristics.

• Every attribute / characteristic of a product can be quantitatively measured

• Quality means the product meets all requirements

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Product – Attributes- Benefits

• Products & Attributes : developed by the company.

• Benefits: Reside in customer & abstract. A benefit is what that attribute means.

• Action steps: • List all attributes – for each attribute,

write the benefit(s)• Use customers’ view: Prioritize each

benefit (attribute)6Dr. V. Winarto

Example: a spoon

• Feature: a shallow bowl, with a handle, material used, shape, pattern, etc

• Function: a holder or carrier of liquids, stirring hot liquid, etc

• Benefit: economy and neatness of consuming liquid materials, pride of ownership, table orderliness, status

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Tangible & Intangible Attributes• Tangible (hard) attributes: Elements of a

product that have physical dimensions or are discernible by the senses.

• Intangible (soft) attributes: The unobservable characteristics that a physical good possesses, such as style, quality, strength, and beauty.

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Characteristics of products: aesthetics - sensory

• Feel (rasa sentuh) soft – hard warm – cold light – heavy flexible - stiff• Texture (rasa sentuh

permukaan) smooth – rough rubbery - slippery• Form (bentuk) organic – angular –

aerodynamic – flat – squared – rounded

• Smell (aroma) fresh – stale natural – artificial• Optics opaque – translucent transparent – reflective• Colour (warna)• Taste (rasa lidah) sweet – sour – salty -

bitter• Sound (suara) muffled - ringing

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Ice Cream - Attributes

• Melts slowly• Dense• Smooth• Rich creamy• Classic and new flavor

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Characteristics of products: perception - symbolic

1. Aggressive – Passive2. Cheap – Expensive3. Classic – Trendy 4. Clinical – Cozy5. Clever – Silly6. Common – Exclusive7. Decorated – Minimal8. Delicate – Rugged9. Anonymous – Inviting10. Elegant – Clumsy11. Feminine – Masculine12. Formal - Informal

1. Fragile – Robust2. Friendly – Frightening3. Functional – Ornamental4. Futuristic – Historic5. Handmade – Mass-

produced6. High-tech – Simple7. Humorous – Serious8. Mature – Youthful9. Restrained – Extravagant10. Temporary - Permanent

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Cars - Some Attributes

• Comfort• Performance• Reliability• Size• Safety• Style• Image• Equipment

• Handling• Noise• Running costs

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Key Dimensions of Customer Value

1. Economic Value: lowest price or quality vs price

2. Functional Value: meeting the needs and wants

3. Emotional Value: the experiential aspects – feelings or affective states

4. Symbolic Value: self expressive aspects – convey meaning – attached to self or communicated to others

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Product Attributes Analysis

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Product Concept

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Developing Value Proposition

ProductProduct

+Services

Solution

Product Oriented

Market Oriented

18

Developing Value Proposition

ProductProduct

+Services

Solution

Product Oriented

Market Oriented

19

Prototyping & Testing

Value PropositionConcept TestingBus. & Product

Product Solution

ProductPrototype(Producer)

Attributes(Producer)

Apa yang ditawarkan : Core Product, Service, Experience, Ambience

Product Mix: Single / Multiple

Product Testing

(Consumer)

Hard(physical)

Soft(style, beauty)

Alpha TestControlled

context

Beta TestCustomer’s context

(complete set)

Elements(partial)

Complete set

Gate 5

Gate 6

Gate 6+20

Market Type The Three Types of Startups

Three Types of Markets

Existing Market

Re-segmented Market

New Market

Existing Market Definition

• Are there customers in the current market who:

– Need the most performance possible?

• Existing Market

– Faster/Better = High end

Re-segmented Market DefinitionLow End

• Are there customers at the low end who:

– Would buy less (but good enough) performance

– if they could get it at a lower price?

• Resegmented Market 1

– Cheaper = low end

Re-segmented Market Definition Niche

• Are there customers in the current market who:

– buy the same product if it addressed their specific needs

– if they could get it at the same price?

– If it cost more?

• Re-segmented Market 2

– Niche = marketing/branding driven

New Market Definition

• Is there a large customer base who couldn’t do this before?

– Because of cost, availability, skill…?

• New Market

– Cheaper/good enough can create a new class of product/customer

– Innovative/never existed before

Market Types Characteristics