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Saturday, 22 September 2018

Criteria for Screening Ideas




Below are the idea screening criteria.

1. Company and marketing objectives and goals : perhaps the most basic criterion used in screening involves the capability of the new idea with the mission, goals and objectives of the firm itself. Product or service ideas which are inconsistent with a desired corporate image, incompatible with the corporate mission, or in contrast with overall company objectives are typically screened out early. In addition, companies usually have product or service objectives and will screen out ideas not consistent with those objectives. Screening by objectives ties the decisions into strategic marketing plan at an early stage.
   
  An example can be used to illustrate what is involved. Objective of a steel company for its own product were that :
a. Sales would exceed 1 million dollars annually within 3 years of introduction.
b. Incremental profit would amount to 7% after taxes.
c. Incremental net return on investment would be 20%.
   
  This company probably would discard new product ideas judged incompatible of reaching this objectives.

2. Market and sales potential : new product ideas are typically screened on the basis of potential. Screening questions here includes the following :
1. What is the estimated market size on growth?
2. What are the expected sales in the market?
3. Who are the potential users and what is their buying behaviour?
4. What is the expected life cycle of the product?
5. What are the size and frequency of purchases?
6. Who are the expected competitors and what are their strengths and weaknesses?
7. What support actually may be required?
   
  Such screening ideas attempts to judge the potential profitability of the proposed idea.

3. Company Capabilities : Even if a product idea is consistent with objectives and shows good potential, the manager should analyse the company's ability to produce and market it. The potential may exist but perhaps not for the manager's company.
Screening questions here includes the following :

1. Will the technical resources be available to produce And market it?
2. Can those resources be applied to the project?
3. Will new manufacturing or distribution facilities be required?
4. Will new channel of distribution have to be developed?
5. Will present customers buy the product, or will the company have to reach completely new customers?
6. Can existing company sales people effectively sell the product?
7. Are present service facilities sufficient to market it?
 
   These are questions for the marketer to consider the compatibility of the product idea with the present capabilities of the company.
4. Contribution of the product :

       Even when the idea looks good based on the proceeding factors, the company may still be better off not producing and marketing it because of negative effects on the firm's other products or service offerings or in other areas of the company.
Appropriate screening questions here includes the following :
1. What effect will the new products have on the existing product line?
2. Does it feel a gap, or does it compete with a present product in that line?
3. Does it increase marketability of other products in the line?
4. How will the product affect the image of the present products?
5. Does the product help utilise excess plant capacity?
6. Will the product compete with products of present customers?
7. Will it give company sales people a more competitive product offering?
8. What contribution to profit should new products make to the firm?
   
These are the kind of questions that are necessary comma in that they compared the marketer to think about the potential contribution of the proposed product.