Product brand management

INTRODUCTION
• The seventh step in new product development is
test marketing which is the stage at which the
product and marketing program are introduced
into more realistic marketing settings.
• Test marketing lets the marketer get experience
with marketing the product.
• The basic purpose is to test the product itself in
real markets. The amount of test marketing
varies with each new product.
 Test marketing
• Test marketing is a technique used during
product development to determine how people
respond to a product .
• Information from test marketing, product
developers can refine products to make them
more commercially viable before embarking on a
widespread project launch.
• The result of test marketing also informs the ad
campaign, ensuring that ads are presented in a
way which represents the product, hits the
target audience, and makes people interested in
purchasing the product.
 AIM OF TEST MARKETING
• To forecast likely results of a national
launch
• To test the operational effectiveness of the
marketing plan
• To identify possible problems
• To assess customer reactions
 Three Approaches
• When using test marketing, consumer products
companies usually
• choose one of three approaches:-
• Standard test market –
• the company finds a small number of representative test
cities, conducts a full marketing campaign in these cities,
and use store audits, consumer and distributor surveys,
and other measures to gauge product performance.
• (a) Drawbacks include costs and length of time conduct.
• (b) Most widely used method of test marketing.
.
• (2) Controlled test market
• research firm uses controlled panels of
stores that have agreed to carry new
products for a fee.
• (a) Usually cost less time.
• (b) Security is often no very tight and
representative is questioned
• Simulated test markets –
• testing a new product in a simulated
shopping environment.
• (a) Are generally less expensive and can
be done in shorter periods of time.
• (b) However, small samples and the
simulation itself can be problems.
Retesting is advised.
 ADVANTAGES
– Lessens the risk of product failure.
– Reduces the risk of loss of credibility or
undercutting a profitable product.
– Can determine the weaknesses in the MM
and make adjustments.
– Can also vary parts of the MM during the test
market.
 DRAWBACKS
• The test market might not be a true
indicator
• Environment might change between the
test and the national market
• Competition may disrupt the test
marketing
• Test marketing alerts competitors
• Largely, though not entirely replaced by
simulated test marketing