Question

Define the meaning of Test Marketing

Answer 1

Test marketing is a method of marketing that aims to check the viability of their new product or marketing campaign by making it available on a limited basis before releasing it on a large scale.

The evaluation in a test marketing situation is not necessarily conducted by technical personnel. Through test marketing, a marketer may be able to ascertain the success ratio of the new product and the marketing campaign and design the marketing mix (Product, price, place, promotion) very well before its launch.

Test marketing of retail products involves placing the new product in a limited number of stores. Sales in those stores are then used to predict market response to the product and guide on the distribution for the full launch. It is often launched regionally and a product is made available only within a particular geographic area. However, it’s important to keep in mind that the test market is a reliable predictor of the full market since a product that is popular in a given area may not be successful elsewhere.

In online marketing campaigns, uses of programmatic advertising as a test marketing tool makes it relatively easy to target a particular audience and to gather data about the response to a campaign.