Question

Mintu Inc. creates, develops and sells several different types of consumer products. Before launching a new product for commercialization, the company would typically test market the product. However, the CEO just heard that the competition is ready to launch a similar product. Provide 2 compelling arguments why, for this new launch, marketing testing ought to be skipped.

Answer 1

It is given that the competitor of the company is also launching the same product, so arguments for skipping the marketing testing of this product would be as follows-

A. Since the competitor is also launching the similar products, then the demand for this product in the market and the problems associated of these products in the market can easily be accessed through the competitors performance and it could be incorporated in the performance of the organisation because the product is of similar nature

B. Skipping the marketing testing will be helpful because it would be saving the time as well as the cost for the company and it would provide them with a better chance to analyse the market with similar product present in the market which is of the competitors and it would give them a better insight of challenges regarding those products and risk regarding those projects and it will also help them to set up price as the the product has already been launched by the competitor.

These could be the possible arguments for skipping the market testing.