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Terms in this set (39)

Limited production of a product in geographic areas chosen to represent the intended market

It is not an extension of the development stage but a sample launching of the entire marketing mix

Should be conducted when the product has gone through development and initial plans have been made regarding other products in the marketing mix

Provides several benefits:
Lets marketers expose a product in a natural marketing environment to measure sales performance

Co. can ID weaknesses in the product or in other parts of the marketing mix

If initial reaction is negative then the product can be altered or the product may be unable to persuade customers to try the product again

Allows experimentation with ads, pricing, packaging and measure the extent of brand awareness, brand swithcing etc.

Selection of appropriate test areas is very important bc the validity of the test results depends on choosing the test sites the provide accurate representation of the intended market

Choosing a test market depends on the product's attributes, target market charactersitics, firm's objectives and resources

It is not without risks

It is expensive and a competitor can jam the program by increasing its own promotions, lowering prices, etc This can invalidate results
These are the risks

Because of the risks, marketers sometimes use simulated marketing as an alternative
Ads or samples are given and customers are interviewed

Advantages of this are greater speed, lower cost, and tighter security, reducing competitor jamming

Not all test marketed products are launched