OBJECTIVES - TEST MARKET CONSIDERATIONS MODULE. To learn the reasons for conducting a test market To learn the basic steps in test market studies To learn the role of Technology in a test market study. TEST MARKET DEFINED.
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Test Markets are large-scale commercial marketing experiments in a limited geographic area chosen for very specific marketing-related reasons. They are part of the screening process for new products and provide the means to evaluate a product and its marketing program.
1. Define objectives
2. Plan strategy
3. Determine methodology
4. Select markets
5. Execute plan
6. Evaluate results
Purchase Test Weights Estimate of
Intent Scale Results Potential Trial
Definitely 25% .52 13.00%
Probably 30 .17 5.10
Might or might 35 .08 2.80
Probably not 7 .02 0.14
Definietly not 3 .01 0.03
Estimated trial rate 21.07%
Total awareness (Marketing Plan) 50.0%
% Distribution (Selling Plan) 70,0%
Net cumulative trial 7.37%
Ongoing repeat rate 30.0%
Ongoing unit sales rate 2.21%
– schools, hospitals, government agencies including military
Retail distributors control access to market