10. Evaluation Of Product Concepts

Having developed a set of alternative product concepts it is necessary to evaluate them and select "the" product concept(s) that is right for your organisation and market place.

Establishing Evaluation Criteria

The criteria for evaluating a particular set of product concepts will be dependent upon your business, the market and your position within it. It is vital that evaluation criteria be prepared well before the detailed concepts are developed or formalised. However, you may find it necessary to modify the evaluation criteria as time goes on to embrace a new dimension to the ideal product.

Typical criteria used in a product concept evaluation include those listed below: customer benefit; life cost; life revenue; market share; pull through for other products; market window match; profit objective achievement; business growth objective achievement; match with business resources available; match with distribution channel capabilities.

It is important to rank the evaluation criteria in importance. It is also important to determine which criteria are vital at certain thresholds but are of less significance in weighting a decision at other thresholds. For example rate of return on investment might be vital up to a certain threshold, but rates above this figure may be of much less significance than the absolute value of the revenues generated by the product.

Strategic Synergy

A key evaluation criteria is whether the product fits in with the general strategy of your business.