Testing Your Idea

Overview

Market Definition

Competition

Testing Products

Plan for Success

Creativity and Commitment

Summary

Worksheet - Getting To Know Your Customers

Worksheet - Profitability Projections

 

 


Testing Your Product

Using the input of your potential customers and mixing it with the other research information you have gathered, you are now ready to develop a prototype product or service. The prototype allows you to "test" your product with potential customers. Product testing can range from the very complex and extensive to a simple, do-it-yourself effort.

Your testing procedure depends on the product or service you plan to market. Some products may require more scientific testing, using a research lab, for instance. If your product may have an impact on the environment or raise concerns about human safety, thorough and objective testing is very important. You can find assistance through private testing labs or university research facilities.

Testing can mean simply allowing potential customers to try the product or service and then asking them for their responses. Information you may want to gather from potential customers during this testing process includes:

  • How they liked the product.
  • What would they change in the product.
  • How does the product compare to what they now buy and use?
  • Would they purchase this product? What would they be willing to pay for it?
  • Where, typically, would they purchase such a product?
  • How often would they purchase such a product?

Entrepreneurs can conduct their own testing and ask these questions of potential customers themselves. The advantages of conducting your own testing are that you hear directly from the customer, you have the opportunity to ask additional questions and it is less expensive. Remember that the value of testing is in the honest feedback you receive from customers. If you are conducting your own research be open to the responses and don't try to defend your product or service when the customer has criticisms or suggestions.

Marketing advisors and consultants can help you to conduct product and service testing. The advantage of hiring a marketing consultant to assist you with this process is that they can be more objective about what they hear. They will be less likely to try to convince a customer of the value of the product, and the information received may be less biased. Their expertise may suggest other questions and information which you may not have considered.

Whether you conduct your own testing or hire consultants, depends on the geographic location of your potential customers, your available time to conduct the testing, your skills in questioning and documenting responses, and your budget.

Testing your product or service before you begin full scale production or marketing can keep you from making costly changes down the road. Your product or service must be designed and built to meet the customers expectations and needs - not yours. The customer will decide ultimately the value of your product.

Getting feedback from your customer should become an on-going part of your marketing plan. Customers' needs and wants change. You need to be open to changes and innovations in your product to meet these changing needs. Being responsive to the needs of your customers is extremely important in today's marketplace. Make a commitment to stay in touch with your customers, to consider their needs, and to frequently ask for their feedback for as long as you own your business.

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Production funding For Let's Talk Business was provided by a grant from USDA Rural Development and the members of Prairie Public Television