Why Test Business Concepts
The repeat success of companies using traditional bootstrapping and lean start up methods has made it abundantly clear the advantages of market testing a concept as early as possible. Why wait until you have a viable and scalable production and sales pipeline to test whether there is actually market and appetite for your product. The best investment is one which reflects the flexible approach needed to make regular market growth in a rapidly changing and often finicky market place. Sometimes called market testing the process of viability testing is used to evaluate consumer response to a product idea prior to hiring staff and actually investing in the development of the solution. The aim is to test the target market’s attitude toward a potential product prior to actually putting it into production.
Quantitative & Qualitative Methods Include
- Process Mapping
- Cost Analysis
- Test Outbound Calling
- Field Surveys
Some of the Key Aims in doing so include:
- Clarifying the distinguishing value proposition
- Establish key marketing and sales channels
“Definition: To test multiple marketing scenarios and select the most promising for expansion.” entrepreneur.com
Is Your Business Viable
Market Analysis and Viability
Market analysis helps ensure you are not re-producing an existing solution or addressing a non-existent problem. There are several preliminary steps that one should take beyond running the idea past perspective clients and financial investors.
Steps one should consider including are:
- create mock up marketing materials that clarifies both the solution and its positioning
determining the maximum cost per acquisition
Craft a template email’s for outbound marketing
identify perspective clients, affinity audiences and associated search terms
“Concept testing (or market testing) is the process of using quantitative methods and qualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to the market.” wikipedia
For help and direction talk to a lead generation consultant with Click Shift.
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