Step 5: Design and Prototype Creation
Posted: Thu Jan 23, 2025 4:47 am
So, the prototype has been created and passed all the necessary tests. The business plan has been drawn up and approved by all relevant services. It's time for market (marketing) testing.
The production of a limited batch of goods begins, which is then put on sale. This is usually done in two ways, depending on the type of market chosen:
trial;
artificial.
A test market is a certain lawyer database sector of the general market, which makes up no more than 1% of it. Sales on it are carefully analyzed, quantitative and qualitative parameters are collected. The main disadvantage of such sales is the high degree of risk. After all, it is not a fact that the selected market sector will be truly representative and will confirm its indicators after the start of wide sales.
But that's not all the bitter pills: in order to produce a trial batch, the costs will be several times higher than those that would be required for mass production of the same amount of goods. And if the marketers made a mistake somewhere and the product "doesn't go over", then this amount is a net loss for the company. And finally, do not underestimate the risk that while you are selling a trial batch and analyzing the indicators, competitors will be able to set up production of an alternative and, taking a risk, get ahead of you on the market, essentially copying the idea.
In order not to expose the project to the above-described risks, specialists increasingly prefer to test new products in artificial markets. Scientific laboratories, R&D, and consumer centers here work in a single system, assessing the expected sales figures based on surveys of more representative samples of potential consumers. Despite the fact that we are talking exclusively about conversations with buyers, and they do not have to part with money, such studies in practice provide more accurate forecasts, and, in addition, reveal the system of people's requirements. And, of course, this method of marketing testing is much cheaper.
The production of a limited batch of goods begins, which is then put on sale. This is usually done in two ways, depending on the type of market chosen:
trial;
artificial.
A test market is a certain lawyer database sector of the general market, which makes up no more than 1% of it. Sales on it are carefully analyzed, quantitative and qualitative parameters are collected. The main disadvantage of such sales is the high degree of risk. After all, it is not a fact that the selected market sector will be truly representative and will confirm its indicators after the start of wide sales.
But that's not all the bitter pills: in order to produce a trial batch, the costs will be several times higher than those that would be required for mass production of the same amount of goods. And if the marketers made a mistake somewhere and the product "doesn't go over", then this amount is a net loss for the company. And finally, do not underestimate the risk that while you are selling a trial batch and analyzing the indicators, competitors will be able to set up production of an alternative and, taking a risk, get ahead of you on the market, essentially copying the idea.
In order not to expose the project to the above-described risks, specialists increasingly prefer to test new products in artificial markets. Scientific laboratories, R&D, and consumer centers here work in a single system, assessing the expected sales figures based on surveys of more representative samples of potential consumers. Despite the fact that we are talking exclusively about conversations with buyers, and they do not have to part with money, such studies in practice provide more accurate forecasts, and, in addition, reveal the system of people's requirements. And, of course, this method of marketing testing is much cheaper.