Marketing Management: Why Some Companies

The growing demand for large businesses success in the market is now challenged by stiff competition. This occurrence competition then drives large organizations to find alternatives of testing the society whether they are going to accept the newly launched products or not. One vocalismicular type of such process is market testing. What is market testing?Market testing refers to the way by which the organizations try to find out if their products that is to be launched in the market be accepted and be well patronized or not. Of course, launching a product without actually knowing at least an overview of the results is such(prenominal) risky especially for newly established production companies. For several years, market testing has been treated by business organizations as a large damage for large companies. However, through years of observation, market testing has likewise been noted to have some certain flaws that reduce its advantage for producing companies. This particular information shall be given deeper discussion within the paragraphs that would follow.The DisadvantagesThere are at least three major disadvantages of market testing that makes it less-appealing to producing companies of the modern economyHints of product characteristics to the competitors in the industry it could not be denied that among the people who are to be given samples of the product for the sake of testing may come from other companies who are competing with the organization. in one case they get hold of the product, it is not impossible that the knowledge that they gain about it shall be utilize against the organization itself. Thus, the hints of the products strengths and weaknesses may be used by other companies to sabotage its formal launching to the market.Excess of production expenses spent for the samples Most often than not, this is considered to be part of the production budget. As part of marketing, creating samples for the public indeed costs the company certain percentageage of expenses. This is supposed to be eliminated to control the production excess. Certainly, this particular aspect of expense could be trim back if market testing is not utilized by the organization.Unsure Results from the Test Usually, those who respond to the promotional period are not a hundred percent interested in the product. Moreover, they intend to appreciate the product at the time because of its being free. Hence, the statistical reports done after the testing is not anymore that secure to the company.ConclusionSince there are major disadvantages in the usage of market testing methods, survey abridgment are more effective at the arrange system of industrial and commercial advancement of business organizations. From this particular method, they are not only able to protect the entities of their new products but they are also able to take good care of their reputation and trademark as they keep it secret from their competitors in their own field of busines s.It is the aim of market analysis procedures to lessen the expenses of the organization from promotional activities and at the same time increase the possibility of their production success in the market. Hence, to do so, several organizations try to do away with the utilization of Market Testing and shift to its alternative of market survey analysis which is gained from ample research.BIBLIOGRAPHYBert Vermeulen. SIMPLE MARKET TESTING. (2003).