Test Marketing : The Bicycle And Marketing Program

988 WordsNov 15, 20154 Pages
Alongside the growing culture of sustainability and declining gas prices, more adults are considering commuting by bicycle rather than car. Bicycle manufacturers who enter the growing market of lightweight, easy-to-store bicycles with safety features should move through the stages of new product development. In this particular instance, the bicycle manufacturer has decided to test market the bicycle and marketing program in one or two urban areas with large commuting populations before manufacturing, promoting, and distributing the bicycle on a national scale. This decision possesses many advantages such as allowing marketers to research actual consumer responses, reducing the risk of a full-scale launch, and creating product awareness. However, the disadvantages of this decision include increased susceptibility from competitors, having a test market not representative of the full target market, and high test marketing costs. Test marketing helps the company obtain information on the product, promotional message, distribution channels, and price; test marketing would make the national launch more successful by giving the company an opportunity to trial the bicycle and change any unfavorable product characteristics, so that it can provide value for consumers. The decision to test market the bicycle is advantageous because it allows marketers to research actual consumer responses, reduce the risk of a full-scale launch, and create product awareness. Data collected on real
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