Test Marketing – Blog 7

Test Marketing – Blog 7

Test marketing is the seventh stage in the new product development process. During this stage the concept product or service is introduced into a limited market to determine the reactions of potential consumers of a product (Mcdaniel, Lamb and Hair, 2011).  Test Marketing is when the concept product or service and the marketing mix are tested in realistic market settings (Kotler and Armstrong 2012).  Test Marketing however can be very expensive, as costs are usually high, however it is cheaper to make a mistake at this stage than it is making a mistake once you fully go into business, as reputations can be ruined by one small fault (Armstrong et al 2009).  It allows management to evaluate alternative strategies and to assess how well aspects of the marketing mix fit together (Mcdaniel, Lamb and Hair, 2011). A marketing program consists of a whole range of concepts including the positioning strategy, promotion, distribution, pricing and packaging (Kotler and Armstrong 2012).

According to scotlandfoodanddrink.org test marketing helps companies answer a number of critical questions about your product or service. Target marketing also gives companies some ‘real’ information on difficult topics such as purchasing habits. Scotlandfoodanddrink.org also suggest that by conducting test marketing a business will have an evaluation of demand and also reduced investment risk. Scotlandfoodanddrink.org also list three types of Test marketing, simulated store test, controlled test and standard test marketing.

For Archball, Simulated store test marketing would be the most appropriate, this method will allow the company to collect useful information in a controlled way, results will be quick and also the advertising effectiveness can be evaluated. This method is also the cheapest of the three, and for a new company this is an important factor.  The company would invite 30-40 people from its target group (15-25) to come and try out the new sport, we would observe the natural reaction to the sport and then ask each individual to complete a structured interview at the end of the day (Appendix 1). During the day the sample of consumers will also be shown the promotional plans including the packaging and advertising ideas, there will also be questions regarding this on the interview. Each session would last approximately between 2 and 3 hours, (1 hour playing, 1-2 hours to complete all interviews). The company would hold two sessions per day for two weeks at Coach Lane Campus, Northumbria University, Newcastle.

Once we analyze the results the company will then go on to a staged rollout, product or service modifications or a national launch.  However there are some disadvantages to test marketing, competitors may try to interfere with your research or competitors may try to copy your idea and bring it to market before you do.

Appendix

1) The questions for the Structured Interview.

Structured interview:

• 1.     On a scale of 1-10 how much did enjoy the sport? (1 not at all, 10 best sport ever played)
• 2.     On a scale of 1-10 how often would you part take in this sport? (1 never – 10 daily)
• 3.     On a scale of 1-10 how reasonable was the pricing in your opinion? (1 much to expensive, 10 very cheap)
• 4.     On a scale or 1-10 how eye catching is the packaging (1 not at all, 10 very)
• 5.     On a scale of 1-10 how interesting were the adverts? (1 not at all, 10 very)
• 6.     Do you think the sport would be attractive if we used a celebrity endorsement? Yes / No
• 7.     If Yes, do you think a professional football player or a well-known TV personality would have a better impact for the sport? Pro Footballer / TV personality
• 8.     If there is anything you could change about the sport itself or the promotion of it (Packaging/adverts etc) what would you change? 

    References 

     Armstrong, G., Kotler, P., Harker, M & Brennan, R (2009). Marketing and introduction. Harlow: Pearson Education Limited

How do I: Conduct a Test Market?. (2015). [online] Available at: http://www.scotlandfoodanddrink.org/site/guide_doc/How-do-I-conduct-a-test-market-2.pdf [Accessed 26 Jan. 2015].

Kotler, P.  & Armstrong, G. (2012) Principles of Marketing14th Edn. London: Pearson Education.

Mcdaniel, C.D, Lamb, C.W, & Hair J.F, (2011) Introduction to Marketing 11th Edn. Ohio: South-Western Cengage Learning.

W13017467 - Product development - Blog 6

Product development Blog 6

Product development is the sixth stage in the NPD process, product development is where the concept is developed into a tangible product allowing the design team to evaluate the products functionality and see if the product meets consumer needs (Armstrong, Kotler, Harker and Brennan, 2009), in this case a new sport concept will be evaluated rather than a product although it follows a similar procedure. The aims of this stage are to design a prototype that will satisfy customers, produced quickly and at a budgeted cost (Kotler and Armstrong, 2012). The marketing department should also decide on the products packaging and branding (Mcdaniel, Lamb and Hair, 2011).

One sporting example of product development can be seen on soccerreviews.com (2012). One post in particular shows how a global brand (Warrior) are using product development, they were in the process of producing football boots for the first time, so they had given a number of professional players a pair of their prototypes and allowed them to train in the. This gave Warrior the opportunity to get feedback from the players, who would advise them on how the boots could be improved to satisfy customers and functions correctly. In this specific instance the player was Vincent Kompany, at the time he was the captain of Manchester city, the team who had just won the premier league that summer and captain of Belgium’s national team. Kompany is a high profile player, in the most watched league in the world; this could also be part of their marketing plans to promote the brand and their new products.

When it comes to the equipment required for Archball, the main face of the board will have a target on with different colours equalling different points, i.e. Black = 1, White = 2, Blue = 5, Red = 10 and Yellow = 20, however the target will have another target on the back with only three colours and bigger target area’s to make the game easier for beginners/children (Appendix A). The legs which hold the main face up will also be weighted to help it stand upright, although it will also come with pegs for outdoor use (Appendix B). Each board will also come with two special Archball balls which will be made small enough to make the game possible but challenging, approx. size 2 (Appendix C). The sport will be trialled using a number of focus groups to help the development of the sports and the equipment, for example the focus group suggest that the balls are too big and that it would be better with a smaller ball, or that the equipment should come with some sort of case to help the transportation from location to location. This stage will also be crucial to the pricing strategy of the company, the focus group may be willing to pay more than what we anticipated which would allow us to increase the retail price and increase our net profits.

Refrences

Armstrong, G., Kotler, P., Harker, M & Brennan, R (2009). Marketing and introduction. 8th edn, Pearson education ltd: Harlow.

Kotler, P. & Armstrong, G. (2012) Principles of Marketing14th Edn. London: Pearson Education

Mcdaniel, C.D, Lamb, C.W, & Hair J.F, (2011) Introduction to Marketing 11th Edn. Ohio: South-Western Cengage Learning

Perkins, B. (2012). Vincent Kompany Training in Warrior Sports Prototype Boot - Soccer Reviews. [online] Soccer Reviews. Available at: http://soccerreviews.com/news/unreleased-warrior-sports-skreamer-klite/ [Accessed 17 Jan. 2015].

 

Appendix

 

A) Targets

 

 

 

 

 

 

 

 

B) Pegs For Stand

C) Ball Size