Key Terms
Ask yourself
Does this product already exist somewhere in the market? If yes, it's new-to-the-firm at most.
Example
Sales grew $100,000; marketing cost $20,000. ROI = (($100,000 - $20,000) / $20,000) x 100 = 400%
Then conduct concept testing
Present a written product description to target market consumers; ask them to rate appeal, likelihood to purchase, etc.
Product metrics
Quantifiable data tracking new product performance
Key Performance Indicators (KPIs)
Specific target metrics set before launch to measure whether the product is delivering on expectations.
Example KPI
Targeted new customers per month.
Formula
((Sales - Marketing Costs) / Marketing Costs) x 100
Market Attractiveness Measures potential value
Short- and long-term profit potential, market growth rate, level of existing competition, cost of market entry, and how
Marketing goal
Reach as many potential buyers as possible at low cost.
Personal influence
Communication between individuals where one person affects another's purchase decision based on authority, knowledge, or
Patents
Exclude others from making, using, or selling your invention. Last 20 years from the application filing date.
Copyrights
Protect original works of authorship — software, music, TV shows, films.
Trademarks
Words or symbols that represent a company or product, legally registered or established through use.
Intellectual Property (IP)
The collective term for patents, copyrights, and trademarks.
Additional ethical consideration
Personal data. Companies must decide what data is actually necessary, how it will be stored, and when and how it will be