After products and marketing programs have been developed for new products, they are usually tested in the marketplace. What is test marketing? How may a company benefit from the use of test marketing? How can test marketing cause problems for a company?
What will be an ideal response?
Test marketing is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
An advantage of test marketing is that it allows management to evaluate alternative strategies and see how well the various aspects of the marketing mix fit together. Test marketing may reduce risk by allowing modification of a marketing mix before national introduction or by withdrawal of a product with failure characteristics.
However, test markets have several disadvantages: costs of test markets are high, it reveals the product to competitors, and a product's success in a test market does not guarantee it will be a nationwide hit.
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What will be an ideal response?
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What will be an ideal response?
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What will be an ideal response?