TEST MARKETING

Rather than push a product onto market and lose a lot of money if it flops, you can test market your creation on a limited scale to see whether it appeals to people and what they'll pay for it. By test marketing a new product, you can:

1. Determine whether your product fits a market need that's not already met
2. Change the color, size, design, functionality or packaging to reflect
consumer response.
3. Find support from distributors and retailers interested in selling your
product.


Action Steps
The best contacts and resources to help you get it done

1. Make a prototype

Prospective buyers want to see a product in front of them before they order. What's more, you need to make sure the product does what it's intended to do and doesn't have usability issues.

Prototypes can be made from metal, plastic and other materials, and prototype manufacturers will advise you on how to lower manufacturing costs should you go ahead with production.

2. Find your audience

Focus your efforts on people who are likely to want what you're selling.

Companies such as Direct Opinions, Information Resources Inc. and ACNielsen's BASES can identify targeted focus groups for you(marketing research).

3. Bring product to the people

Before you try to interest distributors and retailers in a new product, consider presenting the product straight to the buying public to see whether there's interest.

I recommend: Exhibiting a new product at a trade show is a tried-and-true method of testing it directly with your target market. Hundreds of trade shows are held each year.
If you're selling a consumer product – particularly food, clothing, toys or crafts, you might try renting a booth at a state fair.
Farmers' markets offer other opportunities to test buyers' reactions to your new product — and you don't need to be selling fruit and veggies!

Hire a test marketing specialist

Depending on your product and where you plan to market it, you might not be able to show it personally or on a broad enough scale to judge public reaction.

Tips & Tactics
Helpful advice for making the most of this Guide

* If manufacturing a couple of products is cost-prohibitive, use prototypes or mock-ups to show
the product to distributors, catalog buyers and trade-show visitors.
* Don't worry about losing money on test market sales. If the test doesn't succeed, you've likely
saved far more money that you would have spent.
* To encourage retailers to carry a test product, offer the product on consignment or promise a
full refund if the product doesn't sell after an agreed-upon deadline.