It is important to identify which market will new product concept will be sold, how much profits is targeted form new product concept and what are its planned value proposition, sales and market share for the for few years.
Market tests will be made to identify how marketing of new product concept must be conducted for the best results before enduring costs for unsuitable marketing strategies. All marketing elements such as new product concept’s target market, position in the market, advertisement, distribution, packaging, costs, etc.
Consumer tests are sometimes conducted as in-home use tests. Consumers assess the likes and dislikes of the product prior to the organization launching a larger marketing scheme. Market testing is most effective when planned well in advance with the help of an expert in the field. Test marketing should address formulation, processing, and packaging.
Marketing test provides businesses a suitable marketing strategy for new product concept to be commercialized at the next stage. Passing marketing test and going to commercialization directly may make business face with more than expected costs till the level of exceeding profit.
The direct costs of test marketing include a pilot plant to make the product, commercials, an advertising agency because media are not billed, point-of-sale material produced in small quantities, higher media expenses because of low volumes, couponing, sampling, and higher trade allowances to obtain distribution.
Marketing test of the new product
