We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>


Looking For Something at vustudents.ning.com? Click Here to Search

Test marketing is a tool used by companies to have insight into the probable market success of a new product, or effectiveness of a marketing campaign. Test marketing can be used by a business to evaluate factors such as performance of a product, customer satisfaction or acceptance of a product, required level of material support for full launch, and distribution requirements for a full launch.

Initial product testing and test marketing are not same. Product testing is totally initiated by a producer: he or she selects a sample of people, provides product to them for testing by offering some sort of incentive to participate. Test marketing, on the other hand, is distinguished by the fact that the test cities represent the national market. The consumer must make the decision herself/himself, must pay his or her own money, and the test product must compete with existing products in the actual marketing environment.

Suppose Cadbury is to launch its new crunchy snack bar in the market. Cadbury wants to conduct a “test marketing” for predicting its new product’s future performance. One problem with test marketing is that it may make competitors attentive. Resultantly they may counter the new offering.

Point of discussion:

Keeping in view the problem of test marketing, do you recommend Cadbury to launch test marketing for its new product? Why or Why Not. Support your stance/position with three (03) arguments.  (1+9=10 Marks)

Share This With Friends......

+ Click Here To Join also Our facebook study Group.

This Content Originally Published by a member of VU Students.

+ Prohibited Content On Site + Report a violation + Report an Issue


..How to Join Subject Study Groups & Get Helping Material?..


Views: 4851

See Your Saved Posts Timeline

Replies to This Discussion

Thread Modes
MGT301 GDB solution 2016

Product development stage where the product and its marketing plan are exposed to a carefully chosen sample of the population for deciding if to reject it before its full scale launch. Test marketing is an experiment conducted in a field laboratory (the test market) comprising of actual stores and real-life buying situations, without the buyers knowing they are participating in an evaluation exercise. It simulates the eventual market-mix to ascertain consumer reaction. Depending on the quality and quantity of sales data required for the final decision, test marketing may last from few weeks to several months.

Yes I recommend Cadbury to launch test marketing for its new product. Three argument of are as follows.
Testing is a large part of finding out what works before jumping into an idea in the business world. Whether planning a postcard printing campaign, a completely new business idea, or the launch of a new product or service; all business decisions should be tested before fully exposing to your target audience. By market testing your idea or product, you will save yourself from both too much expense and even bad PR, should it not be popular or required.
It provides an opportunity to test a product under typical market conditions in order to obtain a measure of its sales performance. As well as enabling top management to make an accurate prediction of its potential national turnover, this information often forms the basis of the decision whether to extend the product nationally. So the importance of its accuracy is self-evident/
it provides an opportunity, while the product is on limited sale, for management to identify and correct any weaknesses in either the product or its marketing plan before making the commitment to a national sales launch, by which time it will normally be too late—and certainly very expensive—to incorporate product modifications and improvements

Product development stage where the product and its marketing plan are exposed to a carefully chosen sample of the population for deciding if to reject it before its full scale launch. Test marketing is an experiment conducted in a field laboratory (the test market) comprising of actual stores and real-life buying situations, without the buyers knowing they are participating in an evaluation exercise. It simulates the eventual market-mix to ascertain consumer reaction. Depending on the quality and quantity of sales data required for the final decision, test marketing may last from few weeks to several months.

RSS

© 2019   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service