2018-03-20 14:55:37Business InsightsEnglishLearn why it's important to test market your company's new product before launching it so you can maximize profit potential and generate...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/03/Female-small-business-professional-test-markets-products.jpghttps://quickbooks.intuit.com/ca/resources/business-insights/small-business-test-marketing-products-business-insights/Why You Should Test Market Your Product

Why You Should Test Market Your Product

2 min read

Is your company gearing up to launch a new product? Before you fully dive in, you should test the waters first. Even if you’re confident in your new offering, there’s no telling how your customer base is going to react. Launching a brand new product is a pretty big deal, so it’s important that you do it right the first time, every time. Test marketing your product gives you the information you need to make your upcoming launch — and future product launches — a resounding success.

Gain an Impartial Perspective

By test marketing your product, you gain an objective point of view on it. When you have a new product on the table, it’s normal to get very excited about it. The problem comes when your excitement clouds your judgment. Unfortunately, just because you believe your product is utter perfection, it doesn’t mean your customer base is going to feel the same. Testing your product before you launch it allows you to get a more accurate view of how people are going to respond. This window into your customers’ minds helps you to realize whether you need to modify or improve the product or even scrap the project entirely.

Gauge Market Response

If your test audience goes wild for your product, you may want to ramp up production. If you don’t test market your product before launching, it’s easy to end up with too little or too much product, which can cut into your short and long-term profit. Market testing helps you make more informed decisions about manufacturing and inventory, as well as marketing and your customer persona.

Generate Interest

Test marketing a product before launching it can be a solid retail marketing strategy if you play your cards right. If your customers hear about an up-and-coming product from the rumor mill, they’re may get more excited about it than if you simply add it to your inventory with no advance notice. Test marketing your product publicly can be a great way to build anticipation and give your audience a little taste of what’s to come, while also letting them plan their upcoming purchase. Take steps to protect your intellectual property before you release your unique ideas into the world. After all, you don’t want your competition scrapping together a shoddy copy before you get a chance to launch your new product fully.

Start Small

The easiest way to test market your product is to simply ask friends and family members for their honest opinions, even if they don’t fit your typical customer profile. Make sure you communicate how important an unbiased review is to the success of the launch. After testing your product small-scale with people you know, try giving out prototypes to loyal customers to see what they think.

Once you have a solid grasp on whether or not your product is going to be a hit, you can plan the details of your spectacular launch with full confidence, or simply change directions and wait until you’re definitely ready. Yes, launching a product is incredibly exciting, but don’t rush it. Make every launch a success by doing your homework — and your test marketing — beforehand.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

What You Should Know About the OSFI 2018 Mortgage Stress Test

According to the Bank of Canada, as of 2018, 10% of prospective…

Read more

Testing Candidates for Competence Before the Interview

Anyone can make a resume look great, but how do you know…

Read more

Use Small-Scale Testing Before Rolling Out New Products

So you’ve got a great idea for a product or service, and…

Read more