New product market testing before the need for.doc

 PAGE \* MERGEFORMAT 8 New product market testing before the need for In an increasingly competitive, consumers more and more grass is always greener today, no new products, enterprises are doomed to be eliminated, and new product development and promotion of great risks, how to reduce and avoid risks that every positive development of new products, enterprises must face. Enterprises in the new products to market before the market test is an effective means to reduce risk. 1, the new products to market before the need for market testing The introduction of a new product often with a significant risk. The traditional view is that: With the increasingly fierce competition and the pace of change, new products, the profit contribution will be over in the past. However, the new products to market to promote a high failure rate, roughly from 66% to 90%. United States Weston investigation team in 1991 survey results show that the market operators expect 86% of the new product is a failure, in 1984 the estimated value is 80%. In addition, the United States Burke Marketing Research Institute data show that the cost of new product development, 65% for marginal or failed brand. In order to compensate for loss of profits of an enterprise and to maintain a certain level, then these successful products must be received above-average investment return of 30%. To conduct market tests to assist the marketing manager for new products to make better decisions, as well as existing products or marketing strategies to adjust. Market testing by providing a kind of real or simulated market tests to evaluate product and marketing plans. Marketers take advantage of market testing in smaller but lower-cost basis, the proposed national plan of all parts of the evaluation. This basic idea can be used to determine the product across the country and obtain estimates of the profit be greater than potential risks. Market testing research could provide enterprises with the following informa