（REMEMBER,
PHASE ONE WASOPPORTUNITYIDENTIFICATION AND SELECTION
PHASE TWO WAS CONCEPTGENERATION
PHASE THREE IS CONCEPTEVALUATION）
CONCEPT EVALUATION:
1. CONTINUOUS PROCESS
2. STARTS WITH OPPORTUNITY IDENTIFICATION
3. TRANSITION FROM CONCEPT TO FULL SCALE DEVELOPMENT
4. USUALLY MORE THAN ONE CONCEPT AT A TIME IS BEING
EVALUATED (COMPETE FOR RESOURCES)
EARLY CONCEPT EVALUATION TECHNIQUES AND PRINCIPLES:
1.CUMULATIVE EXPENDITURE CURVE
LOOKS AT CUMULATIVE COST OR EXPENDITURES
LATE AND EARLY EXPENDITURE CURVES
FOR EXAMPLE:
PHARMACEUTICALSREFLECT HIGH EARLY CURVES AND LOWER LATE CURVES
CONSUMER PACKAGE GOODS REFLECT LOWER EARLY CURVES AND HIGHER LATE CURVES
REMEMBEROPPORTUNITYCOSTS
2.RISK/ PAYOFF MATRIX (TWO VARIABLES)
ANALYSIS OF THE RISK OF FAILURE/SUCCESS AND PAYOFF POTENTIAL
FOUR RISK STRATEGIES:
•AVOIDANCE
•MITIGATION
•TRANSFER
•ACCEPTANCE
3.THE A-T-A-R- CONCEPT MODEL
AWARENESS,
TRIAL,
AVAILABILITY
REPEAT PURCHASE
FORECASTING SALES AND PROFITABILITY
PROFITABILITY = P x AW x T xAV x R x MARGIN
USE EARLY AND LATE IN THE PROCESS
CHANGE ONE VARIABLE AND THE EQUATION CHANGES
EVALUATION GO/NO GOPRINCIPLES:
•DON’T CONCENTRATE ON ONE VARIABLE AS GO/NO GO
•MAKE DECISIONS BASED ON CORRECT VARIABLES
•USE DATA
•USE FINANCIALS EARLY AND LATER
•LOOK AHEAD- ANTICIPATE
•TRY TO HELP THE CONCEPT NOT JUST “KILL IT”
•IT’S A CONTINUOUS PROCESS
