6. Test Marketing: Under test marketing, the product is introduced in selected areas often at different prices in different areas. These tests would provide the management an idea of the amount and elasticity of the demand for the product.
The objectives of tests marketing are: (a) To evaluate a complete marketing plan including advertising, distribution, sales, pricing and others;
(b) to determine the promotional media mix, channels, etc.; and (c) to forecast the likely sales volume.
7. Commercialisation: In this stage, the product is submitted to the market. Commercialisation is also the phase where marketing is most active in connection with the new product. This stage is considered to be a critical one for any new product and should, therefore, be handled carefully.
The following activities are usually undertaken during this stage: (a) Completing final plans for production and marketing,
(b) initiating coordinated production and selling programmes, and
(c) checking results at regular intervals.
8. Market Entry: Generally, a company does not put a new product into full national distribution from the beginning. In commercialising a new product, market entry timing can be critical.
The company faces three choices: (a) First Entry: The first firm entering a market usually enjoys first mover advantages consisting of locking up some key distributors and customers and gaining reputational leadership.
(b) Parallel Entry: The firm must time its entry with the competitor. If the competitor rushes to launch the product, the company does the same. On the contrary, if the competitor takes its time, the company also takes time, using the extra time to refine its product.
(c) Late Entry: The firm might delay its launch until after the competitor has entered.
2. Product Line:
The product line is a group of products that are closely related either because they satisfy a class of need or are used together or sold to the same customer groups or marketed through the same type of outlets or fall within given price ranges.
According to Stanton, A broad group of products intended for essentially similar uses and possessing similar physical characteristics constitutes a product line. For example, Bajaj Electricals turns out fans, electric lamps, cables, electric irons, heaters, transformers and so on.
