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.