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Level 1

  • No market research performed; if any, market research is predominatelt anecdotal evidence.
  • Focus on current organization needs and problems.
  • Customer / user is uninvolved in NPD process.
  • No concept, product, or market testing undertaken.
  • No studies done to understand marketplace.

Level 2

  • Market research is reactive in nature.
  • Secondary research is performed once a project begins.
  • Market studies are performed once a project begins.
  • No market research function; primary market research is outsourced.
  • Pilot testing predominant form of testing.
  • No real evaluation of testing results.
  • Subject matter experts are used for microenvironmental research.

Level 3

  • Market research used to help develop product definition.
  • A formal market research function exists in the organization.
  • Concept testing, product testing, and market testing are used in some, but not all NPD projects.
  • Result of testing are formally evaluated.
  • Market research is budgeted.

Level 4

  • Product definitions are based on market research with customers/stakeholders.
  • Customer / User is an integral part of the NPD process.
  • Market studies are ongoing.
  • Concept, product and market testing is consistently undertaken and expected with all NPD projects.
  • Anticipate  / identify future customer need and problems through ongoing market research.
  • Market research has an integral relationship with NPD activity.

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