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Test marketing is a review of all factors of marketing strategy for a particular product or service before it’s launching. It is require
- to realize the demand of the product
- to improve the quality of the product
- to reduce the cost
- to do the right pricing
- to adopt the advertising and promotional strategy.
- to find out the best way of distribution.
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Different types of market testing
Stranded test marketing
It is a normal market testing campaigning for national level and it is conducted in few numbers of cities as a presentation of national marketing. In this way marketer can realize the result of their effort for test marketing, it is beneficial for them. But in other hand, competitors also get all information about the product before it‘s launching.
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Controlled market testing
It is an artificial market testing process; it is cheaper and faster than Stranded test marketing. This process gives cent percent assurance about distribution but cannot give any idea about the users or buyers reaction about the product.
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Simulated market testing
It is research based test marketing so does not require to execute any marketing plan hence; it is cheaper and faster than others. In this process consumers and buyers of a particular area, are offered to purchase that test product from any simulated store that is made for that purpose. After few days they are contacted by the researchers to know their opinion about that product. So that researchers can draw a fair idea about customer’s satisfaction or dissatisfaction for that product and thus they can understand the actual market impulse for launching the product.
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