Question

What are two attractive business options when a company decides to test market a new to the world product? Your answer: select a large area but spends only a little amount of money select a large area on a large budget selects a small area and only spends a small amount of money selects only a small area to try out the product, but spends a huge amount of money on all parts of the marketing mix

Answer 1

The two attractive business options to test market a new product include:

1. selects a small area and

2. only spends a small amount of money.

Step-by-step explanation:

So, the best approach is to select a small area and spend a small amount of money for the market testing of the new product. During the market-testing stage, there is no real need to overspend. The budget should be lean and affordable. A small area is recommended for the testing. There is no need to spread the marketing budget thinly on a large area. Such an approach is counter-productive.