How can you know if your brand’s customers are going to accept the product you want to launch or the service you will start offering? The market test is a tool that solves these questions.
Now we are going to explain what it is and how to put it into practice. In addition, we will share real examples of brands that have already applied it in their businesses.
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What is a test market?
The market test It is used in marketing to verify the feasibility of launching products or services. In this way, the efficiency of the marketing plan is evaluated.
The test is carried out in a simulated test market, that is, a small-scale release. When you apply it, you have the opportunity to know how accepted the new release will be and how your target audience will react.
For accurate test results, a Faithful reproduction of market conditions. The latter includes the commercial strategy and the environment, among other aspects.
Obviously, the test market will be smaller than in reality, to minimize costs. However, its extension must be significant so that the information collected is reliable.
Of course, making a market test requires an investment, but good, why? With the results you get a competitive advantage for the launch.
Market tests have these characteristics:
- With them, you identify the needs of your target audience and understand how to satisfy them.
- They help you define the most efficient distribution and sales channels, so you reach your consumers more quickly and easily.
- They allow you to determine if the price of the product and/or service is appropriate and forecast the amount of sales.
- The tests help you identify the risks that the good or service may face when it is launched.
Why do a market test?
now that you know what does the market test consist oflet’s see why you should do one in your business.
1. You get valuable results
The information provided by a market test It is related to important elements and aspects in the commercial process. The exact results depend on what goals the brand sets at the beginning of the test.
In any case, the information will be valuable, because, in addition to letting you know how efficient your marketing plan is, it helps you assess consumer predisposition to buy the product.
When studying the results of market testyou calculate the financial performance of the good or service and your share of.
2. It helps you make the right decisions
This reason for making market test is related to the previous one. Because the data obtained is valuable, taking it into account allows you to make the right decisions that do not put your business at risk.
3. You arouse interest in products or services that you will launch soon
If the acceptance of the target audience selected for the test is good, will stay interested after the test.
Due to what was said in the previous paragraph, when you launch the good or service on the market, the amount of sales will benefit your business.
4. You avoid the risks that exist when launching a new product or service
When you launch a new product or service, you run the risk that it will not be well accepted because it does not cover the needs of the target audience.
Difference between research, survey and market test
Although they may appear to be similar concepts, there are differences between market test, research and survey. It is very important that you know them, because that way you will know when to apply each tool.
Let us first focus on the differences between proof and. The main one is that the test is carried out before the launch and research can be done at any time.
Market research can be done both when launching products or services and when creating a marketing campaign or strategy. The results obtained show you what decisions to make, where to improve and focus your efforts.
As for theits study area and results are more general.
For its part, the market test of a product it is more specific, because, while the survey focuses on how a certain market sector reacts, the test evaluates the reaction of your potential customers.
Because of how specific the results of a market test, they are more reliable. Of course, we are not saying that a survey is unreliable, you just have to keep in mind that it is a faster evaluation and, therefore, more general.
Types of market tests
there are four types of market tests, each one focuses on different aspects, but they are just as useful. Why is it necessary for you to know the test classes that exist?
When you know what each test consists of and what it is responsible for evaluating, you will know which is the most convenient to apply on your brand.
Without further ado, let’s see the types of market tests:
1. Proof of concept
It consists in verifying if the product or service name is appropriate and related to the brand.
The proof of concept also verifies the elements that can be included in the advertising and even the characteristics of the packaging of a product or the good itself.
When to apply a proof of concept?
It can be used in any of the following situations:
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- Design of a different logo in your brand;
- Plan future price changes and offers;
- Identify the messages and images that work in the ads;
- Create a new design on the front page of your business website (this shows that the test can be applied in the).
2. Market test
This kind of test is very important whenwell with it the following is known:
- Quality of advertising;
- Market segmentation;
- Use of appropriate marketing media.
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3. Product test
When the product test is applied, it is compared with the same type of good that has launched the competition, to evaluate both the functioning of the product and its quality and characteristics. That way, is considered a better trade.
The product testing It can be applied before or after a throw. When done later, it serves to make appropriate modifications to the product.
In addition, this kind of test is used to determine what is customer satisfaction or if it is convenient to assign a new price.
4. Verification test
Your goal is simulate conditions as well as possible of the launch of a good or service and its level of sales.
With the proof of verification it is also achieved assess product feasibility and its life cycle.
Examples of market tests according to their type
How to know what type of market tests should you apply? We advise you to take into account examples of brands that have implemented the different types of test.
we will give you four exampleseach one will focus on one of the kinds of tests that we explained earlier:
1. Yamaha and its proof of concept application
Yamaha is a brand that is characterized by the design and production of musical instruments. A few years ago, when I was thinking of releasing the Yamaha Montage keyboard, they had to decide if they would use sliders or knobs.
In order to make the most convenient decision for its customers, Yamaha carried out a proof of concept. In it, he did surveys to assess the preference of the target audience.
When the survey results were studied, Yamaha was able to make the decision that more suited to the preferences of its customers.
2. NASCAR and how it applied the market test when starting a project
In the year 2017, NASCAR decided to change the format of its races, without disappointing its spectators with the change. Therefore, he made a market test in which 200 of his fans participated.
In the market test in ADS not only the response to the new format was evaluated. In addition, their reaction to the advertisements used was analyzed.
Thanks to market testNASCAR launched a new racing format and it is currently successful.
3. Lego and how it increased sales to female audiences
One of the difficulties that Lego had to face for years was that their products did not capture the attention of the female public. But why did his competition succeed? Lego was given the task of discovering it.
Thus, he made a product test together with market research in which he studied the playing habits of girls.
Through the test results it was found that girls preferred independent structures and focus on structure details and interior designs.
Taking into account the results of this kind of market testLego created a new line to capture the attention of girls: Lego Friends.
4. Tesla and its excellent verification test
In 2017, Tesla planned to launch Model 3 and, through a verification test, wanted to know if this model would be approved by your customers.
Tesla applied a smart strategybecause while doing the test, he raised capital to continue with the launch of the Model 3.
When people they tested the car and became familiar with its characteristics and advantages, they had the opportunity to make a deposit to buy it when it was released.
In addition to financial resources, Tesla managed to gather valuable feedback to complete the Model 3 launch process. Without a doubt, the brand is a great example market test.
How to do a market test?
Now, let’s go to practice and see what are the steps you must follow to apply a market test. It is important that you know them, since if you want to benefit from this tool, you must ensure that you use it correctly.
Although it seems otherwise, there are only three steps to carry out the market test:
1. Establish what you want to achieve with the market test
It is true, it seems obvious, but there are many companies that do not establish what they want to achieve with a market test. If you do not have a clear goal, the work will not do any good.
When you think about the goal of the test, answer the following questionswhich are very important:
- Is it a new product or has another brand launched it before?
- Does the target audience know your business?
- Have you carried out a study focused on your competition?
Furthermore, afterAsk yourself: Has my brand already launched products aimed at that sector of the market?
Competition and target audience are highly relevant aspects. So keep them in mind when setting your goals. market test.
Why is this first step essential? The information to collect and the methods you can use vary according to your goals. It is not the same to do a test to launch a new product than to open a brand.
Remember that for the test to be successful it should not be applied to the market in general, but to the niche where is your target audience. That you…
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