Test market in may be unnecessary where the cost and risks for national lunch alone. Typically, this is the situation in which spare capacity or existing machinery can be employed for a minor product adaptation with low promotional cost. The firm's familiarity with the market can provide clear indications of the potential.
Other situation in which testing is probably impractical are :
1. Fashion lines, footwears or clothing, seasonal lines.
2. Fads such as skateboards.
3. Order short life cycle items, such as records and fiction books.
In each of these situations, their very nature is incompatible with the time needed for the process of constructing, performing and evaluating the experiment.
Not all products need to go through test marketing. If the product in question is holding you are new to the company If the product in question is holding you are new to the company common test marketing is almost mandatory. What the new product is an improved version of a product already in the company's line or a minor addition to the line, testing market may not be necessary, provided the products has been well researched up to this point. No harm and fast moves can be laid down as to where to test market. In the final analysis, the decision must be based on the firm's assessment of the probabilities of success and the risk involved.
