Question

4. Why do marketers take the time and cost associated with test marketing?

Answer 1

Test marketing is a tool used by companies to provide insight into the probable market success of a new product or effectiveness of a marketing campaign.

Time and cost associated with test marketing

The direct costs of test marketing include constructing a pilot plant to make the product, commercials, an advertising agency because media are not billed, point-of-sale materials which are produced in small quantities, couponing, sampling, and higher trade allowances to obtain distribution.It is necessary to weigh the cost and risk of product failure against the profit and probability of success,As a result marketers consider cost while doing test marketing.

Time to market is a term for the period of time between the first ideas around a product and its eventual availability on consumer markets. Companies use the time-to-market metric to evaluate how products are developed and how a specific product handles external competition, Money is valued higher than time. But, from a marketing perspective, time with the test products and brand message is more valuable than cash inflow.