METHODICAL BASES OF AN ESTIMATION OF MARKET ADEQUACY OF COMMODITY INNOVATIONS IDEAS

Abstract

Creating a market-successful product innovation involves a whole range of works at each stage of the innovation cycle. Especially many such works are performed at the stage of selection of ideas for product innovations, when we are dealing with checking their market adequacy. At this stage, a key role is played by marketing testing tools, which are used to evaluate and select not just the best innovative ideas, but those that have high market prospects. Therefore, the instrumental content of the marketing testing procedure for the selection of the most promising ideas of product innovation is of great interest, which is the purpose of this study. The article presents the instrumental content of the marketing testing procedure for assessing the market adequacy of product innovation ideas in order to select the most promising of them. Due to the fact that in the early stages of the innovation cycle there are no reliable and specific data on future market capacity, consumer demand, and financial analysis is likely to give unreliable results, as tools for evaluating and selecting promising ideas, scientists suggest using methods based on expert estimates. The disadvantage of these methods is that the ideas are considered in isolation, and does not take into account the impact of any of them on the overall allocation of resources throughout the portfolio of new product projects. Besides, it is necessary to consider that at similar assessment it is possible to eliminate mistakenly the perspective idea, or on the contrary to make decisions on development and commercial production unpromising idea. Among the alternative methods of evaluation and selection of ideas should be noted: the method of control questions, the method of filtering criteria, the method of evaluation scale, the method of calculating the conditional quality of the idea, the method of calculating the rating of the idea of a new product, method of standard evaluation forms, checklists, method of estimating the probability of success of a new product idea, method of added value, method of project portfolio management. The choice of a particular method is individual, and depends on the specifics of the product, market, industry, management attitude, and so on. The obtained results develop the theory of innovation marketing in terms of assessing the market adequacy of product innovation ideas.