GOVT.

NATIONAL COLLEGE,
SIRSA

SESSION-2023-24

PRESENTED BY:-
YOGDATT VERMA
B.COM. FINAL YEAR
COLL. ROLL NO.-1211371003116
UNI. ROLL NO.- 21002115450079
 TOPIC

Test Marketing
• Contents:-

Meaning of Test marketing.

Procedure for Test marketing.
Principles of Test marketing.
Advantages Test marketing.
Limitations of Test Marketing.
Meaning of Test Marketing
Test marketing means
marketing goods experimentally to consumers in
several carefully ,selected areas before releasing
them on wide scale.”
Example-
A technology company that creates new
software for programming and asks its employees
to test the software before launching.
Procedure for Test Marketing

1. Determining the number of cities.

2. Selection of cities.
3. Duration of test marketing.
3.1 Average repurchase period.
3.2 Competitive situation.
4. Cost of test marketing.
5. Collecting necessary information.

6. Drawing conclusions.
Principles of Test Marketing

1. If there is a possibility of increase in competition due test

marketing, or the competitors can influence the product contrarily,
test Marketing in such circumstances should be avoided.

2. If the new product will make the existing product obsolete, test
marketing should be done only after comparative analysis.

3. Do not Select test markets without careful study.

4. Do not too early, wait till the complete entry plan has been
prepared.
Advantages of Test
Marketing
1. Estimation of sales
2. Formulation of policy regarding
middlemen
3. Removal of defects in the product.
4. Knowledge of consumer reactions.
Limitations of Test Marketing
1. Knowledge to competitive firms.

2. Away from the reach of small firms.

3. Test results are not fully reliable.

4. Not possible for all products.

Conclusion
Test Marketing allows a company to determine if a
product or service is popular in the market and avoid
potential risks to the brand. Many test marketing
methods can be incorporated into your business
strategy.
THANKS