The Marketing Book 5th Edition

Developed Concept

Qualified Ideas

Assessed

Service Concept

Catalogue

Phase 1

Idea Qualification

Phase 2

Concept Development

Phase 3

Concept Rating

Phase 4

Concept Assessment

Qualify

Develop

Codify

320 The Marketing Book

clear statement of customer benefit’ (p. 145).
They go on to describe a formalized process
implemented at Nortel, the large US tele-
communications equipment manufacturer,
which was developed to assist the transition of
idea to concept. The project name for the
development of this process was ‘Galileo’, as
the intention was to develop a mechanism
(process), which, like the telescope, could aid
the identification of ‘stars’. The process is
shown in Figure 12.3.
Internally, the development team needs to
know which varieties are most compatible with
the current production plant, which require
plant acquisition, which require new supplies,
and this needs to be matched externally, in
relation to which versions are more attractive to
customers. The latter involves direct customer
research to identify the appeal of the product
concept, or alternative concepts to the cus-
tomer. Concept testing is worth spending time
and effort on, collecting sufficient data to
provide adequate information upon which the
full business analysis will be made.

Business analysis

At this stage, the major ‘go’/‘no-go’ decision

will be made. The company needs to be sure

that the venture is potentially worthwhile, as

expenditure will increase dramatically after this

stage. The analysis is based on the fullest

information available to the company thus far.

It encompasses:

1 A market analysis detailing potential total

market, estimated market share within specific

time horizon, competing products, likely price,

break-even volume, identification of early

adopters and specific market segments.

2 Explicit statement of technical aspects, costs,

production implications, supplier management

and further R&D.

3 Explanation of how the project fits with

corporate objectives.

The sources of information for this stage are

both internal and external, incorporating any

market or technical research carried out thus

Figure 12.3 The Galileo process