1. Great Products Need Little Advertising By: Harlan T. Beverly
Oklahoma State University June 2013 * IGNITE FORMAT
PRESENTATION
2. 50% of Products Fall into the Chasm of Failures.1 1 Cooper,
Robert G. New Products: The Factors That Drive Success.
International Marketing Review 11, no. 1 (1994): 6076.
3. 2 Moore, Geoffrey A. Crossing the chasm: Marketing and
selling disruptive products to mainstream customers. Harper
Business, 2002. Moore Says: Get Passionate Early Adopters
&Moore Says: Get Passionate Early Adopters & Leverage Into
the Early Majority.Leverage Into the Early Majority.
4. Godin Says, Build a REMARKABLE PRODUCT3 3 Godin, Seth.
Purple cow: Transform your business by being remarkable. Portfolio,
2003
5. How Many People Have Heard Statements Like: We just didnt
market the product well or Its Marketings Fault, They Never Got the
Word Out.
6. Research Questions Can Advertising a Poorly Conceived
Product Lead to Success? Can Well Conceived Products Succeed with
less or even no Advertising?
7. Normal Assumption RevenueRevenue SuccessSuccess
AdvertisingAdvertising ExpenditureExpenditure
9. Prior Research on Product Conception Quality Existing
Research has shown evidence that Product Conception Quality is a
key success factor of NPD: Product Superiority5 5 Cooper, Robert
G., and Elko J. Kleinschmidt. Screening New Products for Potential
Winners. Long Range Planning 26, no. 6 (1993): 7481. 6 Murphy,
Steven A., and Vinod Kumar. The Front End of New Product
Development: a Canadian Survey. R&D Management 27, no. 1
(2002): 515.
10. Prior Research on Product Conception Quality Existing
Research has shown evidence that Product Conception Quality is a
key success factor of NPD: Product Superiority5 Upfront Marketing
Homework Research5 5 Cooper, Robert G., and Elko J. Kleinschmidt.
Screening New Products for Potential Winners. Long Range Planning
26, no. 6 (1993): 7481. 6 Murphy, Steven A., and Vinod Kumar. The
Front End of New Product Development: a Canadian Survey. R&D
Management 27, no. 1 (2002): 515.
11. Prior Research on Product Conception Quality Existing
Research has shown evidence that Product Conception Quality is a
key success factor of NPD: Product Superiority5 Upfront Marketing
Homework Research5 Clarified Project Requirements6 5 Cooper, Robert
G., and Elko J. Kleinschmidt. Screening New Products for Potential
Winners. Long Range Planning 26, no. 6 (1993): 7481. 6 Murphy,
Steven A., and Vinod Kumar. The Front End of New Product
Development: a Canadian Survey. R&D Management 27, no. 1
(2002): 515.
12. Prior Research on Product Conception Quality Existing
Research has shown evidence that Product Conception Quality is a
key success factor of NPD: Product Superiority5 Upfront Marketing
Homework Research5 Clarified Project Requirements6 Clearly meeting
specific needs of the Target Market6 5 Cooper, Robert G., and Elko
J. Kleinschmidt. Screening New Products for Potential Winners. Long
Range Planning 26, no. 6 (1993): 7481. 6 Murphy, Steven A., and
Vinod Kumar. The Front End of New Product Development: a Canadian
Survey. R&D Management 27, no. 1 (2002): 515.
14. Why Might Conception Quality Effect Advertising
Effectiveness Word of mouth marketing is one of the most powerful
methods of advertising.4 Its free It includes a built-in
reference/recommendation It can be viral (go from person to person)
According to Moore and Godin, this word-of-mouth and referencing
action is what makes products succeed. 4 Krishnan, Viswanathan, and
Karl T. Ulrich. Product Development Decisions: A Review of the
Literature. Management Science 47, no. 1 (2001): 121
15. Modern Technology Modern Technology Has EMPOWERED customers
such that: They can easily research the best products to satisfy
their needs. They can easily see reviews and quality information.
They can quickly get the advice and recommendation from friends.
Studies are Showing that Social Networks have Increased the Power
of Word-of-Mouth7 Trusov, Michael; Bucklin, Randolph E; Pauwels,
KoenJournal of Marketing, ISSN 0022-2429, 09/2009, Volume 73, Issue
5, p. 90
16. Does Advertising Even Matter? One goal of this study is to
examine if Advertising even matters at all! Or how little is needed
to get the Word of Mouth rolling
17. New Metric: Product Conception Quality Likert Scale Survey
Questions: The Product Was Superior in its Category at Launch. The
Product Was Targeted to a Clearly Defined Target Market. Marketing
Studies Were Performed and Used During The Product Definition
Stage. Team Members Felt the Product Was Clearly Defined Prior to
Development. The Team Understood the Needs and Desires of the
Target Market Well. The Product was Designed to Fulfill the Needs
and Desires of the Target Market.
18. Research Design Survey & Historical Data 10 Game
Companies, 10 Video Games Historical Independent: Advertising
Expenditure New Metric Independent: Product Conception Quality
Dependent: Historical Revenue Results ANOVA analysis with
interaction effects
19. Risks Is the sample size significant? Can we even find 10
willing participants? Is Revenue the right Dependent Variable?
Hoping by focusing on games, the price effect on revenue will be
mitigated somewhat. Is the survey metric for Product Conception
Quality any good? Are there other more significant effects at
play?