Swot Analysis : Test Markets

855 Words Nov 11th, 2015 4 Pages
Test markets are an excellent way to test the marketability and viability of your product in the mass market through a demographic group. In this situation, we are testing the success rate of a lightweight and easily stored mountain bike in a simulated mass market. The chosen demographic regions are two urban areas with a huge population of commuters. Granted, the advantages of test marketing include getting actual data of the mountain bike’s success, and reducing the risk of making mistakes during the product launch. However, there are also disadvantages and they are present in the consumption of time and financial resources, and the risk of being behind other competitors. In any event, there are a couple of information that the test marketing will gather regarding the product’s marketing mix. This includes the consumer response, marketing effectiveness, and effects on competitors. This increases the chance of having a successful national launch because the test market has identified preventive treatments for possible disasters, and reaffirmed which marketing aspect should be continued.

To begin with, there are numerous advantages to test marketing but data collection and risk management are two of the greatest examples. First and foremost, test marketing increases the chance that the mountain bike will be favorably received by the mass market. All the data collected can be used to determine if they have the right marketing mix to proceed with a mass market launch. This…
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