Advantages And Disadvantages Of Test Marketing

Test marketing is a way marketing executives can reveal their new product or an improved version of their product to their target market. If the product receives positive feedback, the companies can make the decision to move forward to introduce the new product into the market. The central idea of testing the market is to gather a large amount of consumers input on the product to make better and efficient marketing mix decisions, which consequently generates potential sales among the company target market. Indeed, test marketing has its advantage and disadvantages, so it is significantly important for marketing executives to consider carefully both.
One advantage of test marketing is the ability to provide the company with accurate data on how the public likes the product since …show more content…
However, it is clear to see that testing marketing advantages overcome its obstacles. Testing the market before launching a product into the market is extremely beneficial to the company because it allows the company to evaluate product feasibility, consumer’s needs and wants. It also enables the company to make decisions and improve the product marketing strategy if necessary. On the other hand, it is important to take into consideration the disadvantages of test marketing that include large manufacturing and advertisement costs, the threat to the company trade secrets, high level of time consumption, and also invalid and unreliable data. All things considered, creating a product that is unique, useful and hard to imitate is the key to a successful product launch and financial turnover to the company. Conducting a marketing test before launching a new product or an improved product into the market allows marketing executives to make accurate predictions of the potential turnover of the product. It also enables the company to identify and fix any product