Zahra Mustafafi/MBM 17020007

Individual Assignment on Session 3

1. Explain why consumer market testing might not always be

beneficial.
The consumer market testing might not always be beneficial due to
several reasons below:
a) The potential costumer unable adequately to understand the
product
Despite the company has launch totally new innovative product,
but surely out of consumer mind, it might become more negative
response rather than successful launch. The consumer whether
does not know the advantage of the product or they think the
product does not give any beneficial for them.
b) Consumer frequently have difficulty articulating their needs
Somehow, the customer itself could not define what they actually
need. The innovation of the product is often solved their problem
although the costumer might not define it.
c) Consumer research can tell you what people did and thought at
one point in time: it can’t tell you directly what they might do in a
new set of circumstances
The consumer somehow doing bias thing, when it comes to the
market research at certain point they suggested some important
thing for them. But, when finally the product launched the
innovation, the consumer even did not buy the product. It is
extremely changed and even unpredictable.

2. We are told that many new products fail, but is this because many
firms are impatient? Discuss whether firms should allow more time
for their product to be adopted and whether they would end up
with a successful product.
The new products fail is not only because the firms impatient on their
launch. It might also because the customer and the product are not
adopted properly. Another reason is because the product itself not that
essential to buy. Firms are think that the product is new and innovative,
but, in fact whether it is too ancient or customer did not get the product
overview. However, some of the product launch that rejected by the
customer ended with the successful of the market and break the new
product development product. It supposed to be good strategies that
firms implemented on their launch of the product. Whether patiently
getting response from the customer or strongly doing the proper market
research.

3. Explain why discontinuous new products present a different

challenge.
Because the discontinuous new product is majority or extremely new
innovation that people might never think. It is differs the product from
their existing, defining new market, and even leads the buyer to change
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their pattern. The main difficulties of conducting market research for

discontinuous new products as follows:
a) The problem of the selection of the respondents
b) The problem of understanding of the major innovation.
The company might targets super limited segment which can affordable
the innovation, but still providing clear explanation of the product and its
procedures how to use it.

4. Show why the more radical the innovation, the greater the
pertinence of qualitative market research techniques (eg.
Customer visits and focus groups)
The idea of radical innovation is usually comes by extremely new idea,
that people might not get it. It leads to greater effect of research market
using the qualitative method. Because the qualitative method of research
market (concept test) derives the concept clear enough. It will covered
the understanding and believability in the product, ideas about what it
would look like, what it would be used, when and by whom it might be
used. So, the market research will target the right potential consumer
and gaining the essential feedback of the product.

5. Discuss the advantages of the tripartite product concept in

developing new products.

The classical layered view is often misleading on views of the new

product. The tripartite product concept that viewed from three aspects
highlighted the reality of any product’s situations. It will be reviewed by
the channel member than end user. The supplier will review the product
might gain the benefit or loss, and the product or service itself will
reviewed the technical attributes and physical features.

6. Examine whether there do exist innovations, typically radical,

where market research of almost any kind is premature, not just
cost-justified or of limited value.
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7. Discuss the dilemma faced by all firms of trying to listen to

customers’ needs and wants and yet also trying to develop new
products for those customers that they do not yet serve.
It is not surprising that many firms try to meet the customer needs. And
many of them ended up with established themselves and providing what
costumer needs. But, for any reasons, it is really dilemmatic when the
company is trying to survive in the short term with reducing any costs or
developing creativity for innovation on the long term. It might be more
dilemmatic when they face the customer needs. However, aligned with
Akio Morita, Sony’s Influential Leader, the company should lead the
customer due, because they did not even know what was possible.
Successful company is the one who challenge the existing product and
market on its creation. It might articulate the customer needs and
capturing every single opportunity in the market. This means developing
products that will be used in the future. Customer perspective might
important in some cases, but rather than focus on the customer, the firms
is better to innovate the idea that fulfill the needs gap.

Using the two-by-two matrix above, Hamel and Prahalad have shown that
the costumer and their needs should be defined well by the company in
order to winning the market innovation. It might not articulate yet by the
customer, the company should articulate it first.

8. Explain why some writers argue that organizations are the

graveyard of product innovations rather than the birthplace.
Common mistakes that happen on product innovation are handled by the
senior management, they are:
a. Applying pressure on product managers to seek high profits from
quick volume sales rather than develop business opportunities for
the future
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b. A heavy reliance on market research to minimise risk when

developing new product ideas
c. Using of financial systems that minimise risk and avoid investment
in more long-term projects is another common preference
Those things should be handled by the management in order to develop
the innovation. It might break the system and company rule, but it is
better than nothing to gain for future. However, without changes,
potential innovations will continue to be squeezed out by the system, and
thus rob the company of the most effective means of survival (Brown,
1991).