Market Testing Indicates Potential Market Performance
Test marketing is essentially a tool which provides insight into the probable commercial success of your new product or service and/or the effectiveness of the proposed marketing campaign.
Launching a new product or service without undertaking market testing can be a costly exercise. Often time to launch pressure is identified as the rationale for skipping this crucial stage however, seasoned marketers will attest to the high level of valuable information which can be gained through appropriate and well executed market testing. At IMS, we have undertaken many types of market testing and pilot projects ranging from product trials to large scale test markets to small simulated selling scenarios to beta software tests. Whatever your budget, market or product type, we can work with you to design an appropriate and effective marketing testing program.
Why is market testing important?
Save time and money
The latter stages of the NPD process are undoubtedly the most expensive as the money and resources which are required to bring a product to market increase dramatically. Data obtained during market testing can prevent costly product development or marketing mistakes from hampering otherwise successful launches.
Test out different marketing messages
Market testing affords an effective opportunity to determine what marketing messages resonate best with your target market. If a campaign receives a negative or luke warm response during market testing it can easily be changed. Determine the “right” message pre the actual market launch can save months of expensive campaign fine tuning.
Confirms Unique Selling Points
Marketing Strategist, Peter Drucker wrote, “The customer rarely buys what the company thinks it sells him. Often entrepreneurs fall in love with elements of their new product or service but regularly those aren’t the same features or benefits which the customers deems important. Market testing confirms exactly what it is the customer cares about in relation to your offering providing you with useful insights when compiling your marketing copy. Testing may also reveal that a particular feature can be removed, since consumers don’t need or want it again saving time and money.
Generate unsolicited feedback
While testing allows you to test specific assumptions and get answers to particular questions you have, it can also can generate new ideas from potential customers Conducting primary research can lead to ideas regarding new features, reveal previously unidentified benefits or inform you to later packaging, price or other elements of your marketing mix.
Identify possible faults
Market testing gives potential customers the opportunity to put your product through its paces before it’s officially launched. The market will potentially use and abuse your product in a way previous analysis had not uncovered leading to potential issues with safety, refunds, repairs, warranties and replacements. Understanding how your product performs in the real world is a crucial test which is skipped at an innovators peril.
Are you interested in our New Product Development Services?
Contact us if you would like to discuss your requirements with a member of our specialist team.