Test Marketing:

The test marketing is the stage where the product is introduced in a few selected cities.
During this stage, the company has to fate the following expense:

 High advertisement
 High manufacturing cost.
 High distribution cost etc.

For testing the product, marketer needs to make the decision on the following issues.

 The no. of cities in which the product is to be tested.

 Geographic location of the cities.
 Time to carry ort test marketing

Through this exercise, company can know the customers response, feedback, suggestions,
complaints and any other changes required to be done for product modification.

After successfully laughing the product in selected cities the company launches the new
product in all other cities.

There are certain methods of product testing.

Alpha Testing

In this method, a group of target audience is selected from the employees of the company.

Beta Testing:

It is carried out at the customer’s site. Generally, it is applicable for industrial products where

the customization takes place.

Gamma Testing:
It is carried out on a long term basis where the customers uses the product extensively and

gives response after a long period of time. Say six months.