Posted in Marketing and Strategy Terms, Total Reads: 307
Definition: Test Market
A marketing plan to introduce a product in its development stage to a chosen population before complete launch of the product is referred to as Test Marketing and the sample of population chosen for this exercise is called the Test Market.
The research is carried out on the potential ideal customers to determine their preferences, patterns towards purchasing the product. Test markets are crucial for any company as it avoids the risk of shooting in the dark regarding the demand the product can generate. The qualitative and quantitative analysis of the data obtained through consumer surveys, online questionnaires and other research methods forms a database that gives desired insights on appropriate interpretation of the information gathered. The outcome is always probabilistic and may not be always successful for a particularly chosen target market. Hence this calls for further tests in different demographics to understand the consumers correctly.
Test markets are chosen to provide valuable insights corresponding to the pricing of product, consumer reaction and most importantly to give feedback about the changes required to be done before the full scale launch of the product.
The ulterior motive behind the experiment is to assess - Will people buy what u have to sell?