A Case Study to Investigate how Beta Product Marketing can Test the Validity of a Product’s Market Potential

Abstract: Many entrepreneurs and start-ups come to the point when they have finished the development of a product but then moves to the phase which is crucial for a products success, the marketing effort. Large investment costs combined with the uncertainty of the developed product's market value is the reason for many products failure. Thus, many new products never reach the market because of the lack of certainty concerning the products market potential. This thesis aims on spreading some light on the market value of a product by using a new method, described by the thesis as "Beta Product Marketing". This method builds on the principle of developing a so called beta product. A beta product is a prototype that is introduced into the market as if it was the finished product. By analyzing the responses from these sales, one can, according to the thesis, better determine the market potential of one's product and thereby get important insights before taking large investment risks. The thesis consisting of two main parts, one being the development of a product and the latter treating the field of exploring the market. This thesis resulted in a prototype that could be introduced as if it was the finished product. The Beta Product Marketing resulted in a small study comparing the method to a standard way of predicting the market attractiveness. It was stated that the method seemed to predict the market quite well but that the research needs more data to be verified.