Developing and introducing new products is a vital activity for companies that want to succeed in today’s society. The process of introducing a new product into the market goes from generating an idea, to testing the market and, finally manufacturing and introducing the new product. In this complex process of introducing a new product, test marketing could be essential to assure the effectiveness of this new product in the real market. Test marketing is a stage in the new product development cycle that comes before commercialization. This stage consist on testing the marketing strategy and the products in a realistic market setting, prior to a wide scale of production. Doing a test marketing can bring both benefits and disadvantages. Among
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However, depending on the situation, a test marketing can also bring disastrous disadvantages. The costs of a test marketing are extremely high, furthermore, it is a slow process that takes time to achieve accurate results. The three biggest disadvantages of a test marketing are time, money and inaccurate results. The first disadvantage is time. The perfect timing when introducing a new product can be valuable. Introducing a new product too early or too late might cause the company not to be able to attract enough market share to generate profit and the product would fail. An important factor to think about when deciding to do a test marketing is the competition. Spending valuable time with a test marketing allows competitors to position themselves in the market with similar products that satisfy the same customer need and want. A second disadvantage of the test marketing is the money. Besides being time consuming, companies must expend a lot of money to create a test marketing and get accurate results. When the cost of introducing and developing a new product are low, a test marketing might produce more damage than benefits. A final disadvantage of a test marketing is getting inaccurate results. The main goal of the marketing test is to gain valuable information about customer insight to predict future performance of the new product in the real market. However, inaccurate results from the test marketing might harm the company because it would not be able to analyze the market trends
However, depending on the situation, a test marketing can also bring disastrous disadvantages. The costs of a test marketing are extremely high, furthermore, it is a slow process that takes time to achieve accurate results. The three biggest disadvantages of a test marketing are time, money and inaccurate results. The first disadvantage is time. The perfect timing when introducing a new product can be valuable. Introducing a new product too early or too late might cause the company not to be able to attract enough market share to generate profit and the product would fail. An important factor to think about when deciding to do a test marketing is the competition. Spending valuable time with a test marketing allows competitors to position themselves in the market with similar products that satisfy the same customer need and want. A second disadvantage of the test marketing is the money. Besides being time consuming, companies must expend a lot of money to create a test marketing and get accurate results. When the cost of introducing and developing a new product are low, a test marketing might produce more damage than benefits. A final disadvantage of a test marketing is getting inaccurate results. The main goal of the marketing test is to gain valuable information about customer insight to predict future performance of the new product in the real market. However, inaccurate results from the test marketing might harm the company because it would not be able to analyze the market trends