In evaluating a new product idea, it can be misleading to consider only one conception of the product's attributes and marketing program. Different conceptions of the marketing mix will yield different estimates of profit potential. The author shows how the “best” marketing mix can be found under the conditions of limited information. The estimated profit potential of this best mix becomes the basis for judging whether the company should develop the new product.
Get full access to this article
View all access options for this article.
References
1.
BoozAllen, and Hamilton, Management of New Products, third ed., 1960.
2.
GreenP. E., “Bayesian Statistics and Product Decisions,”Business Horizons, 5(1962), 101–109.
3.
JohnstonJ., Statistical Cost Analysis, New York: McGraw-Hill, 1960.
4.
NemmersE., Managerial Economics, New York: John Wiley and Sons, 1962, 96ff.
5.
SchlaiferR., Probability and Statistics for Business Decisions, New York: McGraw-Hill, 1959, Chapter 2.
