Posted in Marketing and Strategy Terms, Total Reads: 1552
Definition: Concept Testing
It is the stage in the new product development cycle, where the concept of the product is discussed with its potential buyers highlighting the benefits the product will provide. Qualitative and quantitative analysis helps in knowing what the customers think about the product. This is done to validate that the product concept meets the needs of the potential customers. It is also used to test an advertisement concept, before it is actually made.
Advantage: if the product does not click with the customers then it can be tweaked to cater to the requirements. If the company realises that the audience is not at all interested in the product, the idea can be rejected, before investing a lot of capital in production and launch.
Challenge: It becomes difficult to convey the exact benefits of a product that the consumers have not heard about.