White Paper
Winning Concept Development
This paper presents the views of Power Decisions Group about key principles of concept development and enhancing the probability of success with sound process, creativity, and marketing research.
NEW PRODUCT CONCEPT TESTING MARKET OPPORTUNITY STUDIES ADVERTISING RESEARCH MARKET SIZING PRICE TESTING SEGMENTATION ŠPower Decisions Group, Inc. 2009
Power Decisions Group, Inc. San Francisco, CA
The seedbed of strategy. Concept development is a process used for a wide range of product, branding, and advertising efforts:
Creating new products and improving old products, Identifying new markets and fresh opportunities, Developing brand positions and platforms, Advertising themes, appeals, and core platforms.
Within an enterprise, the formal use of concept development and concept testing is primarily an activity associated with the marketing function, and more broadly, within strategy development. At its core, concept development is the process of transforming hopes, visions, and ideas – thoughts and emotions – into tangible things that move the business. Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
Those things are the products and services, and the brands and advertising that communicate messages about them, which are offered in the marketplace to do one thing: grow profits and competitive position. At its core level, then, concept development is what turns ideas into strategy. We can call this process the ‘seedbed of strategy’ for a business enterprise. It’s where growth starts.
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Creative thinking vs. analytical thinking. With something as important as the ‘seed bed of strategy’ it’s worth the effort to discover a process with which we can come up with the great ideas that lead to great products and great brands. The crux question is, ‘How do we develop compelling concepts and convert them into products, brands and advertising platforms that grow revenue and give us greater advantage over our competition?’ To answer this question, let’s look at how we think, and how the people involved in concept development might be asked to think in a certain way because they play specific roles in the business and in the concept development process. We’ll come up with the best concepts if we do.
The process of concept development must employ and interweave two very different types of thinking: creative and analytical. Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
In our view, the mandate for decision-makers is this: Achieve competitive advantage by interweaving creative and analytical thinking. Pay close attention to ensure a flexible and robust concept development process so that no potentially great ideas are left out.
Creative Thinking
Analytical Thinking
Optimal Concept Generation
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Everyone think broadly. What’s next? The people involved. The creative development process will likely be a team effort. People on the team will bring to the table various talents, perspectives, and roles. Some team members will be primarily charged as creative thinkers, generating ideas. Others will primarily engage in left brain analytical thinking. Still others will primarily fill the role as synthesizers, formally engaging in both. The critical point is this: all team members do both creative and analytical thinking. Promote opportunities for all thinkers, regardless of their formal roles, to collaborate in both ideation and analysis.
The best concepts will hatch by mixing up the thinking roles for team members in activities opposite their usual.
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
For example, involve creatives in reviewing the concept testing research design; they may offer up some incisive research queries. Likewise, include Team Members researchers and production engineers in ideation sessions. This mixing it up invites synergism and stimulation that may produce unexpected and interesting enhancements to the concepts being generated or refined.
Creative Thinking
Analytical Thinking
Protect space. PRODUCT CONCEPT RESEARCH MARKET OPPORTUNITY STUDIES ADVERTISING RESEARCH BRAND EQUITY MARKET SIZING PRICE TESTING SEGMENTATION
Allocate and protect the space designated for creative and analytical work. The standard rule applies: don’t judge when generating ideas. Likewise, as new ideas pop up during research and evaluation sessions, for example, make a quick note and stick with the analytical agenda. Sounds simple, but not always easy. One very good tool to accommodate both is to use the ‘six thinking hats*’ method which calls for only one framework at a given time.
*The Six Thinking Hats approach by Edward deBono provides a way to ensure that all have ‘the same hat on’ at the same time. Ask for details.
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Incubation everywhere. Incubation should be built-in at every step of the way. Give yourself and your team adequate time to sleep on it. Incubation is usually associated with the creative process; that is, idea generation. It’s the ‘quiet time’ of the mind; the rest and relaxation after focused intense work. Advertising and branding agencies know how important it is in the production of great ideas. Incubation also works elsewhere: Determining the goal; Designing the research; and Uncovering and prioritizing opportunities and choices.
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
As an example, a client of ours had engaged us to undertake a long-term market and new product feasibility engagement. The engagement involved multiple research stages. The results of our initial landscape research, and the time it took, gave our client both initial insights and some valuable thinking time. This time and fresh data created an incubation window for new thinking and our client change direction regarding the target new product category. Having planned enough time in the engagement schedule, our research team to refocused on the new target and continued with modified later stages. Clearly, the time and incubation it allowed, added immense value.
Put incubation time on the schedule for all players involved in the concept development project. You’ll get better results.
Use a ‘great idea’ to explore more. Often, concept exploration starts with a single idea. Use it to take a step back to view the full market opportunity. PRODUCT CONCEPT RESEARCH MARKET OPPORTUNITY STUDIES ADVERTISING RESEARCH BRAND EQUITY MARKET SIZING PRICE TESTING SEGMENTATION
Often times a new concept development activity jump starts with the emergence of a ‘great idea’ for a new product or advertising. While one approach is to proceed directly to test and evaluate the one idea, our view is to use the nub of the initial idea as the seed to fully explore the market opportunity it represents. You may find additional options and greater long term success.
*The Six Thinking Hats approach by Edward deBono provides a way to ensure that all have ‘the same hat on’ at the same time. Ask for details.
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Concept development planning looks like any other project. Concept development, as with many business processes, can be organized and sequentially planned in a logical set of steps.
Planning for the creative and analytical steps can use traditional scheduling and budgeting tools such as PERT, and GANTT charts. The key to meeting the schedule is redundant steps. Here is an example of a possible concept development sequence.
8. Launch 7. Live Market Tests 6. Create Samples (Comps, Proto-types, etc.)
Decision point 5. Concept Testing Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
4. Refine Concepts 3. Concept Research, Testing & Evaluation
2. Concept Idea Generation 1. Uncover Opportunities
In this example, steps one through four focus on uncovering and refining the final concepts.
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At step three, initial concept research, the goal is screening and thoroughly understanding buyer preferences. It may be appropriate to undertake advanced analytics using such methods as conjoint analysis; yet, the goal end point is refined concepts that make sense both internally and the marketplace. Then proceed at step five into definitive concept testing to evaluate the one or two winning candidates. It is here where the decision is made to proceed forward to execution, moving from concept to tangible form (product, service, ad campaign). Now the goals shift for research to that of ensuring that the tangible form meets buyer expectations.
On the surface, then, concept development looks like most other projects.
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Concept development is unpredictable. Concept development is a sequence of recurring creative and analytical steps. Each step has unknown and wide-ranging possible outcomes. Some outcomes may require going back to square one, or leaping ahead. Organizational Drivers may affect the process in unexpected ways. Successful organization of the concept development process requires flexibility. While it is important to fully plan the process, the anticipated components may need to change along the way. The creative process continues as ideas and new research data come in. Incubation continues apace as team members and management review and consider it. At play too, is a third input element in addition to creative and analytical thinking. This third element, Drivers, we summarize as the passion and judgment of decision-makers. We’ve written about this elsewhere describing the strategic intelligence platform composed of Data, Ideas, and Drivers. Drivers are the preferences of decision-makers based on their intuition, experience, and knowledge. Some call this ‘gut feeling’. Drivers color the data and ideas under development: the same ideas and data in one organization may be acted upon quite differently in another based on the passion and judgment − the drivers − unique to each. Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
Concept development can be messy and unpredictable. Flexibility is required. Understand and incorporate organizational drivers into your process.
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PRODUCT CONCEPT RESEARCH MARKET OPPORTUNITY STUDIES ADVERTISING RESEARCH BRAND EQUITY MARKET SIZING PRICE TESTING SEGMENTATION
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3. Concept Research, Testing & Evaluation
Data
2. Concept Idea Generation
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What about concept research? Here are key principles to incorporating concept research and testing into the concept development process. In the beginning, we focus on generating and refining concept options. Concept development requires first an exploratory market research mindset, starting first using qualitative research methods such as depth interviews or online communities among target audience members. We address tangible attribute clusters, benefits, and emotional appeals when creating concepts and building concept statements. We prefer methods and innovative project scheduling which enable rather than confine client incubation. There are relatively new methodologies, which we favor, such as qualitative online forums and research communities which build in time-extension. These methods allow for repeated respondent interaction and incubation which simulates real-world consideration. Using hybrid research designs, we blend the qualitative research mode with quantitative concept testing, this to refine concept development and assessment of appeal. Research outcomes spawn creativity; so we suggest building in ongoing creative input into the process. Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
As we come to stages calling for quantitative research, the interweaving of creative and analytical thinking should continue. Thus, our approach to screening concepts favors smaller sample multiple waves rather than one large sample wave. We prefer more clear and straight-forward quantitative survey questions for use in advanced analytics. We want to be sure that item validity is high, meaning that respondents will uniformly interpret and be able to answer a given question. To understand true appeal of a concept appeal we must ensure that it is communicated well with maximum realism. We believe that online surveys have a strong advantage as they allow use of a variety of media for the presentation of concepts in a venue where respondents control the pace of the ‘interview.’ This gives study respondents giving respondents the time they need to think about the new concepts they are evaluating.
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New qualitative methods mirror real world. In early stages of concept development, it is often best to begin research with qualitative methods to harvest perceptions from prospects in semi-structured conversations. New online qualitative tools offer time-extension which mirror both client decision-making and buyer consideration. Qualitative research is the first step early in concept development rather than more formal quantitative surveys which come later. Among the most familiar qualitative methods are focus groups and depth interviews which are conducted by moderators using discussion guides listing topic areas and open ended questions to present to respondents. These traditional methods engage respondents in a single event, e.g. the group or individual interview. At Power Decisions Group, we have conducted scores of productive focus groups and qualitative interviews. When the goal is observing people interact with one another face-to-face about your product or brand proposition, they are a good choice.
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
For concept development, however, there are newer web-based qualitative research environments that allow us to engage respondents in such a way that more realistically matches how people actually absorb, consider and adopt new ideas and propositions. That is, they think about new information over time, and often, their views change over time. Too, brand decision makers, our clients, proceed over time through their own decision-making and idea generation thinking.
Online Research Communities An online research community is one of these new methods. It brings together target audience respondents into an exclusive and controlled research social network online for a period of 30 to 90 days. In many respects, research communities look somewhat like Facebook. The difference is that a research community is created exclusively for an individual research assignment.
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Once the recruitment screening requirements are determined, potential study participants go through an advance screening interview by phone or online, and if qualified, are invited into the community. Over a several week period, research respondents are exposed to product and brand stimuli, open-ended questions, as well as closed end questions. They can, at the researchers discretion, interact with other respondents and engage in conversations about the concept under study.
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Research communities offer clear advantages for early testing. Project manager and client team observes in progress; gains insights; on-the-fly input
Example: Refined concepts shown as built
Participants access the research community in a web portal. This is where visuals (videos, graphics) are seen. Reactions logged & visible to moderator.
Data
Insights
Insights Insights
Find & InviteTarget Participants e.g. "Likely prospects"
Data
Capture & Reporting
Online Research Community (30+ Days)
Insights Verbatims
Starter Query: Show initial concept (static or video)
Moderators Guide Prepared
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
Example Moderator Interactions with group .
Post Follow Up Discussion Questions
More Concepts (static or video)
Moderator probes (questions & options)
Concept Questionnaire to compare or rate
Reactions to New Concept
Client Concept Development Creative Process
Market research online communities have distinct advantages for concept testing in the early stages: Size & Reach: This method can cover a wider geographic area, improving efficiency and payoff. Each community can accommodate several hundred participants.
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Depth: Given the longitudinal nature of research communities, it is possible to go much deeper on a given topic than in a focus group or depth interview. Breadth: They allow the research team to cover a wide range of topics in one venue. Speed: Once the community is established for a client project, it’s available. Concepts are often revised frequently. These revisions can be quickly posed to the community. Time-extension and incubation: The beauty of this leading edge method is the real-world timeextension that allows for thoughtful incubation by participants, and by the client team.
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Perceptual maps visualize concept positioning. Perceptual maps are an effective quantitative tool for concept research to show where new concepts fit in a market space. Brand perceptual maps are a visual way of seeing and understanding the market space. Most frequently used in studies to visually represent the distance between brands, attributes, and segments; perceptual maps can also overlay quantitative positions of concepts. Brands or future brands (concepts) are located based on their strength of association with attributes that are highly discriminating.
We build maps using study data analyzed with advanced analytics, frequently correspondence analysis or multidimensional scaling. With these analytical tools, for example, the most salient segment definitions will be a combination of product usage levels, psychographics, lifestyle, and demographics.
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
Concept Alpha
Concept Beta
Concept Delta PRODUCT CONCEPT RESEARCH MARKET OPPORTUNITY STUDIES ADVERTISING RESEARCH BRAND EQUITY MARKET SIZING PRICE TESTING SEGMENTATION
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Maps show how elements relate to one another by their proximity on the map. The axes in a perceptual map have no fixed meaning – the map can just as easily be looked at upside down or sideways. Attributes that discriminate the least between the test concepts appear closer together while those that discriminate the most appear farther apart.
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Concept stimuli must be carefully crafted for research. Concept stimuli − text statements, rough ads, video presentations − are the crux element of a quantitative-stage concept test. They must be created to contain both clear presentation of facts and features, and the coloration of advertising language, yet be balanced.
Concept stimuli are most typically presented to respondents using text concept statements [product concepts, advertising themes, positioning platforms, promise statements]. Visuals − videos, storyboards, rough ads − are also offered depending upon research goals and the stage of concept development at the time. At all stages of concept research − qualitative and quantitative-- the presentation of the product, advertising, or positioning concept is critical to produce valid concept research results.
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
The role of a qualitative research is that of presenting the initial concept formulation in words or pictures. Having multiple steps in the qualitative effort provides the research opportunity for initial presentation and subsequent iterations of refinement. This refinement process during the qualitative effort has the goal of fine-tuning our understanding of buyer beliefs, attitudes, and perceptions; and, refining the concept stimuli presentation for the quantitative stages.
Features Benefits Appeals
Concept Statement
Revision
Revision
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A practical model. A cornerstone of concept development and concept research is brand. Whether it is based on an existing or new brand, a new concept rests on your assumptions, or model, about brand equity. Our model, GBQ3x5, is a starting guidepost for development and concept research. All new marketing concepts for products or communications are based on your core assumptions about the qualities you want to deliver. Clearly articulating these brand qualities serves as a platform for building a new concept and testing it through concept research. After many years of brand research and observation, we’ve distilled a simple, usable, and powerful brand model: GBQ3x5 − Great Brand Qualities. It evaluates the 5 ‘Great Brand Qualities within the 3 components of brand. First, we view all brands as having three core components: Value Bundle − tangible and intangible values delivered from features & benefits Promise − stated or implied core promise made to the customer Brand Picture − sensory brand representations, ads to logos
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
Turning to the qualities of brand, there appeared to be five fundamental attributes on which we can examine any brand. Sure, there are refinements that can be made for particular product or service categories or industries. Yet, these seem to be at play for most of them.
Contact Consistency
Focus
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Making contact with the customer and prospects via all media, personal and mass communications. Consistent means ‘staying the course’ time after time, having little variance from one brand experience to the next. Consistency builds trust, reliability, and loyalty. Making contact with the customer and prospects via all media, personal and mass communications. Focus means concentration of effort as summed up in the phrase ‘doing a few things well’. It also means not confusing the customer.
Connection
Connection means connecting with a person, a living breathing human being, not a segment, or a target. This connection can either be emotional or intellectual. We see evidence of ‘connection’ as brand enthusiasts surface.
Leadership
A great brand establishes leadership somewhere, on some beach head. It may be product innovation, or it may be the compelling sincerity of its promise, or the dynamic force of its name and voice.
How is this model valuable or practical for concept development and measurement? Let’s look at a matrix.
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GBQ Matrix is a guide. The GBQ Matrix is formed from the intersection of the two dimensions − brand components and brand qualities − gives us a practical tool usable as a guidepost for concept development and research.
Contact
1. Value Bundle[VB]
3
Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
Consistent
VB2
VB1
5 Focus
Connection
Leadership Example B
VB3
VB4
VB5
Example A
2. Promise[P]
P1
P2
P3
P4
P5
3. Brand Picture [BP]
BP1
BP2
BP3
BP4
BP5
The GBQ Matrix provides a practical guide to set standards and goals for new concepts, and then for analysis, provide a tool for guiding the measurement of market reaction. Each intersection of qualities and brand components in the matrix suggests drill down questions tailored to each concept development case.
Example A: Promise - Consistency Here we consider the matrix intersection labeled P2. Here we look at the brand quality of consistency for the brand component ‘brand promise’. Questions for the development team might include ‘How has our brand promised consistency with past products in the same brand family?’ ‘In what ways have we delivered on the promise of consistency?’ ‘How must our promise about this new product be formulated to be consistent with customers brand family experience?’ For concept research, we would be prodded by P2 to measure ‘believability’ of the concept promise, and customer perceptions of the concept brand’s ability to consistently perform on the promise.
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Example B: Value Bundle - Leadership At VB5, the development team is prompted to assess how the tangible features of a proposed product might demonstrate leadership in some fashion. The goal here is to seek out some front on which leadership can be established. For a technology product, leadership might be an innovation in the form factor of an existing product, price leadership, or added services.
Using this Great Brand Qualities [GBQ] model, or your own brand paradigm, will provide a touch point and roadmap your your concept development venture.
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If your organization is seeking professional assistance with concept research, contact: Thomas R. Brown Senior Consultant Power Decisions Group, Inc. San Francisco, CA www.powerdecisions.com
Power Decisions Group, Inc. San Francisco, CA o: 415.339.0498 www.powerdecisions.com info@powerdecisions.com
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