When it comes to creating a workable business plan for an organization, the key decision-makers in the organization need careful planning paired with in-depth analysis. Market research is the most common solution that helps business owners to find their way in terms of market trends, competitor analysis and future challenges concerning their products or services. Researchers collect market data and analyze it to create accurate forecasting reports that help laying the groundwork and making a successful business strategy? But what if the data collected by these analysts is unsuitable, inaccurate or incomplete? Concept testing is a great solution to this problem.
Concept Testing and Market Research- Peaceful Correlation
Concept testing is the process of newly launched or hypothetical products before the organization actually decides to launch them. When a new product is in its developmental stage, concept testing allows their flow through numerous brainstorming sessions and screenings in order to understand the flaws and changes in the products. It is done to ensure that there are least amount of errors and complications in the products or services, when the products or services are finally launched. This is an essential process in marketing research. Firms from across the world prefer concept testing over blindly launching their products in the market.
The process of concept testing is iterative, which takes place in several phases. The most common phases of concept testing include development of the initial idea, refining and re-testing the shortlisted ideas and developing the final concept. When the products or services are run under concept testing, they provide crucial information about the product features and customer expectations. They also provide insights about logo testing, packaging, name coining, assessment of unique sales proportion, distribution channels and shelving analysis of the entire production process. All these steps of concept testing show eagerness of the business owners in order serving customers with the right products.
The process of market research often relies on concept testing. Primary reason of using this method is to avoid the chances of failure with large productions. When a small batch of the products is produced, researchers take them to select outlets in the target markets. These are the well chosen places where the potential customers tend to shop for the similar products. The behavior and opinion of these customers towards the sample products help researchers to come up with significant conclusions in terms of the quality and complaints about the products or services. Several experts claim concept testing to be risky, simply because one cannot always trust the customer response.
More often than not, customers are reluctant towards the products that are re-launched in the market with slight improvements. Convincing such people could be a tough ask for the marketers and business researchers as well. However, if the products are newly conceptualized the concept testing is worth the risk.