When Natalie and Chris analyze the results from a recently completed test market to determine if any changes in the marketing mix of the product are needed, they are in the phase of the new-product development process.
a. idea generation
b. commercialization
c. concept testing
d. business analysis
e. screening
The correct answer and explanation is :
The correct answer is:
d. business analysis
Explanation:
In the new-product development process, businesses typically go through several phases to introduce a new product into the market successfully. These phases are crucial for making informed decisions about the product’s viability, profitability, and market fit.
- Idea Generation: This phase involves brainstorming and coming up with new product ideas, often from various sources such as employees, customers, competitors, and market research. It’s more about quantity than quality at this stage.
- Screening: Screening is the process where ideas generated in the previous phase are reviewed to eliminate those that are not viable or don’t fit with the company’s strategic goals. This phase narrows down the ideas before moving to concept development.
- Concept Testing: Here, the product idea is tested with potential customers to gather feedback on whether the concept resonates with them. This helps refine the product idea and ensures that it is something consumers are interested in.
- Business Analysis: This is the phase where Natalie and Chris are currently. After gathering data from concept testing and market research, businesses evaluate the financial feasibility of the product. They look at factors like cost, pricing strategy, profit potential, and market demand. This phase helps to determine if the product should proceed to the next step of development or if changes to the marketing mix are necessary. In this scenario, analyzing test market results helps determine if any changes are needed to the marketing mix—price, product, promotion, and place—to ensure the product’s success.
- Commercialization: This phase involves launching the product into the market. After thorough testing and analysis, the product is produced on a larger scale and introduced to a broader audience.
In summary, business analysis is the correct phase, as it involves assessing the product’s feasibility, including analyzing test market results and adjusting the marketing mix accordingly.
