ch.18 Market testing

sometimes called tiered marketing

rollout

test marketing

a firm picks several markets to sell the new product into, and test all variables including competition,trade, ad, etc. the product is sold in the regular channels and advertised at representative levels in local media reduces risk and creates strategy improvement costs $1 million, length, competitor can disrupt

visionary shopper

a virtual market testing technique in which a respondent is brought into a virtual retail store environment and encouraged to look around, take products off the shelf and read the label, and make purchases

full scale

all variable are go!

pseudo sales

asks potential buyers to do something such as say they would buy the product if it were available the action is distinct and identifiable, and much more of the marketing strategy is utilized in the presentation little pain for the buyer - no pain no major risks

market testing

basic idea of market testing is to test the combined package of product and its marketing plan to see if it will be successful, before spending a lot of money on a product launch implement the plan in a few cities and see what happens in the real marketplace, against real competitors, being bought by real customers market testing is not test marketing

scanner testing

behaviorScan infoScan: a system of auditing sales out of outlets selling grocery store products; a method of market test design and data gathering

the rollout:

cannot avoid the problems of a test market

simulated test market

comes very early in the development process create a false buying situation and observe what the customer does utilizes ATAR mode get estimates of trial and repeat rate procedures: mall intercept, self administered questionnaire drawbacks - false conditions mathematical complexity may not be applicable to the new to the market products

costs involved in market testing

direct costs costs of the launch lost revenue that a national launch would have brought

_______ is sometimes called tiered marketing or limited marketing

direct marketing

identify the method of market testing that is least likely to be used for industrial goods

direct marketing

market testing and test marketing are synonymous

false

most likely to make use of a rollout

full sale

which of the following causes for new product failure does concept testing cover?

if there is a lacke of need for the product

identify the situation in which the marketplace may not be good for market testing

in the case of global launches

which of the following methods is a variation on minimarkets?

informal selling

market tests must have teeth

insights gained at this stage include: solid sales forecasts with greater accuracy diagnostic information to revise or refine any aspect of the launch

direct marketing

involves real purchasing under some real competitive environment

which of the following statements is true regarding speculative sale?

it creates a false buying situation and observes what the consumers do

concept testing

lack of need

types of information that may be lacking

manufacturing process vendors and resellers

market testing

marketed poorly

which of the following is an advantage minimarket testing provides over test marketing

minimarket testing allows for greater flexibility in changing price and other variables of a new product when compared to test marketing

identify the method of market testing more likely to be used for packaged consumer products?

minimarketing

the controlled sale market testing method that involves distributors and retailers or dealers in the process?

minimarketing

which of the following is a pseudo sale method of market testing?

minimarketing

speculative sale

often used in b2b and consumer durables give full pitch on product, answer questions, discuss pricing ask - if we make this product available as i have described it, would you buy it?

market testing should typically be carried out:

once the ideation phase begins

importance of market testing

opportunity to obtain solid forecasts of dollar and unit sales the planners need diagnostic information to help them revise and refine anything about a product launch that seem to require it - product, packaging, communication effort, etc.

informal selling is a _________sale method of market testing

partial

product use testing

product does not meet need

the roll out

select a limited area of the country and monitor sales of product there by geo, by application, by influence, by trade channel gives management most of the knowledge learned from a test market; it has an escape clause without losing the full budget if things bomb new product facility - roll out requires full plant competitors may be able to move fast available distributors are powerful and shady rollouts tend not to be newsworthy

minimarkets

select a limited number of outlets - each store is a minicity or minimarket do not use regular local tv or newspaper advertising, but chosen outlets can advertise in its own flyers ex: scanner market testing

forms of market testing

test marketing simulated test market informal sale minimarket rollout

direct marketing

the sale of a primarily consumer product by the maker directly to the consuming unit by means of mail, telephone, etc. cheaper than other techniques

informal selling

used for b2b products and consumer products sold directly to the end users we ask them to buy

deciding whether to market test

what information is needed? ex: sales volumes costs nature of marketplace capability of testing methodologies

under which of the following situations will market testing be quick, if at all it takes place?

when competitors can take retaliatory action that will hurt a company launching a new product