Your CEO is personally involved in developing a new product that is really cool,

Question

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?

Explanation / Answer

Before giving my response, I would have a financial dipstick report ready. Wherein I would outline, what’s the market like for the product she is keen on launching. Also I would include the consequences of going ahead with such a high budget on a product whose viability has not yet been determined.

My answer would not be very different even in the event of the launch cost being only $300,000. As there is no point in throwing money at an idea, without analyzing it wholly and thoroughly.

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