Week 10: Principles of Marketing - Your CEO is personally involved in developing a new product that is really cool, but you have your doubts about whether it really delivers any additional benefits over what is already available. When you pitch the idea of marketing research study to test consumer response, she says, “Are you kidding? Why waste the money and time, as well as let our competitors know what we’ve got? Let’s get this to market!” But the market launch will cost $3 million and your company’s profits last year were only $5 million. How would you respond? How would your answer differ if the launch only cost $300,000? by Jonathan Gordon

aleude63 — 2025-04-14 16:40:17 UTC

If the launch costs $3 million and we only made $5 million in profit last year, I would tell the CEO that we should really think about doing a marketing research study first. That’s a lot of money, more than half of what we earned last year, and if the product doesn't do well, we could lose a lot. The research could help us understand if customers actually want this new product or if it’s just something we think is cool. It might take a little time and money, but it could save us from a much bigger loss.

If the launch only costs $300,000, it’s a different story. That’s a smaller amount compared to our profits, so the risk isn’t as big. In that case, it might be okay to skip the research and launch the product faster, especially if we want to surprise competitors. But even then, I’d still suggest doing at least some small research, just to be sure we're on the right track.

2025-04-14 17:34:55 UTC

If the launch is going to cost $3 million, I’d say we should be careful, especially since that’s a big chunk of last year’s profits. It would be smart to use market research to identify our target market and see if there’s actual demand for the product before diving in. We could also use strategies like focus groups or surveys to test the idea without revealing too much to competitors. But if the launch only costs $300,000, I’d still suggest some kind of market testing, like a small pilot launch to get a sense of how the product will perform with our target audience, but the lower cost means it’s less of a risk.

anthonymazzeo — 2025-04-21 03:10:18 UTC

If the market launch were to cost $3 million, given that our profits from the previous year being $5 million, I would double down on my idea. With such a hefty cost to our profits, ensuring that our target market would be ready, and in desire for our product is the smart move. Although it may cost additional expenses, it would be better to see out the market before dropping our really cool product, and not risk a huge loss. If the launch was $300,000, then it may be worth the risk, as cost would not be a great concern. In this scenario, a sudden drop would throw potential competitors off guard, and the product could thrive in a market where it is unique, allowing more time for its popularity to grow before other businesses develop their own product.

2025-04-28 02:39:23 UTC

Based off of the fact the launch of the new product alone will tank more than half of the years previous profits, I would definitely advocate for more research. Although if the product has already reached the stage of almost getting launched, it is fair to say that a quantity of research for it has already been conducted. Depending on what the product actually is, it could be tested in a control setting with a sample just to see initial reactions, then maybe a rollout in a small area before moving to a full-scale launch of the product. of course if the launch only costed $300,000, my thoughts would be different. With a significantly smaller part of profit lose at state, I believe I would throw caution to the wind and agree with others and proceed with the launch. if the cost is that big of a difference, the potential profit may be differing that much as well. Either way, despite my thoughts, market research is important to the success of any product big or "small."

2025-04-29 01:27:06 UTC

I would respectfully push back and explain that spending $3 million (over half of last year’s profits) without any consumer feedback is too risky. A failed launch could badly hurt the company’s future, and a small research study could prevent a huge loss. If the launch only cost $300,000, I would still recommend some limited research, but might agree to a faster, more agile launch since the financial risk is much smaller.

2025-04-29 13:18:38 UTC

I would respond by saying we must conduct some market research before going all in on it. $3 million is a lot of money, and if it does not go well, that could be a major financial hit to the company. If the launch was only $300,000, however, I would be much more into the idea of just starting it with no market research. This is because in the grand scheme of things, $300,000 is not that much, and it may be a good idea to just go forward with the idea and see how people respond afterwards. I still think doing at least a little bit of market research would be a good idea, but if my CEO did not want to do any, I would understand.

2025-06-03 02:06:17 UTC

I would respond by explaining that losing at least $3,000,000 (consequences could include losing a lot more, company crashing down, all employees losing jobs, etc) is a very irrational decision, especially without conducting research first. If the launch would cost $300,000, my response would not be any different, I would still explain how it still a very irrational decision and could cost several millions in total.