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What happens to the marketing strategy while a prototype is being tested?
AChannels are chosen and demand for the product is estimated
BThe product is launched nationally in every single market
CThe strategy is frozen until the testing has been completed
DThe brand name is dropped and a new category is created
Answer & Solution
Correct answer: A. Channels are chosen and demand for the product is estimated
1. Product testing and strategy refinement run in parallel rather than one after the other.
2. Channels of distribution are selected and pricing policies are developed and tested.
3. The target market is further defined and demand for the product is estimated.
4. Management also continually updates the profit plan during this period.
5. Freezing the strategy would waste the information the prototype tests produce.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.7 Creating Products That Deliver Value_
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