Marketing test of the new product

Companies use varying techniques to generate ideas for new products. After idea generation, the major steps in developing a new food product may be divided into four phases: screening, feasibility, test marketing, and commercialization.

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

Point of sale display

The term ‘point-of-sale’ refers, quite literally to the place in which a customer will decide to purchase the product – not just the shop, but the specific areas in which products are displayed and where money and goods are exchanged – often a counter or sales desk. They are the devices used to promote new products, ideas or opportunities.

Point-of-sale display material is often linked to sales promotion schemes including coupon, special pack, premium offer and other methods of inducing users to try a new product not remain loyal to an existing product or brand.

A point-of-sale display might simply an arrangement of the products themselves, possibly in a specially designed container or dispenser.

Marketing organizations occasionally use consumer competitions as part of their communications strategy - this is also helpful in indicating the preference points of the consumer and can be an aid to further product development. Point of sale material often has an important role in promotion such competition.

 Cardboard is usually used for point of sale displays. There are several reasons for this:
*Cardboard is cheaper than acrylic. This is important because usually a point of sale displays only have to last for as long as the product promotion.
*It is easy to print on to. This helps to keep costs down
*It can be folded flat for delivery. This is important factor for transportation and storage
Point of sale display