Types of Test Marketing
The marketing testing carried out by the marketers varies from one place to another. Moreover, it depends on several other factors like the type of goods.
Industrial Goods In industrial goods, there are two types of market testing, namely- Alpha Testing and Beta Testing.
Alpha Testing: Alpha Testing is performed within the firms by the employees or test engineers who examine the marketing mix of the new products. They also fix the issues that arise during the launching steps of the products.
Beta Testing: Beta testing is performed with the end-users, i.e., the customers. Theyâ€™re asked to use the products and provide their feedback on the same. Sometimes, firms often organize trade shows to introduce their products and check the reactions of the customers. Then, based upon the feedback of the customers, the product is modified or launched officially.
2.Consumer Goods Consumer goods market testing is conducted in order to know the behavior of the consumers in terms of:
Trials: Whether the consumers will try the product at least once.
Repeat: Whether the consumers will repurchase the product after a trial.
Adoption: Whether the consumers will accept the products and are willing to buy them again.
Purchasing Frequency: How frequently the consumer is going to buy the product.
Benefits of Test Marketing
Test marketing provides the marketing companies with the below crucial benefits:
It offers an opportunity to check the product and test it under actual market conditions to obtain its sales performance.
It also enables the upper management to predict its possible national turnover with maximum accuracy.
The information collected during the market testing often forms the foundation of the decision to whether to launch the product on a wider scale or not.
It also enables the management to use the feedback collected in the testing process to identify the weaknesses and rectify them before its actual market launch.
Test marketing also allows the products to sell themselves.
It also provides the consumers ample time to try the product and provide their feedback accordingly.
It also aligns the interests and desires of the customers with the company values.
Market Testing in the United States
For many consumer marketers, testing any product in the market area that serves as a microcosm of the intended market and audience is a regular exercise. A microcosm is a place or community having the similar attributes of something much larger. Thus, it helps marketers scale their products nationally without wasting much expenditure prior to its actual market launch. The United States is one of the top countries which acts as the best microcosm to launch any product. The country has some key cities that serve as the perfect microcosms of the whole nation. According to research done by WalletHub.com, there are 25 major microcosm cities in the country based upon certain key metrics like gender, age and income. Nashville, TN; Cincinnati, OH; Indianapolis, IN; Charleston, SC, and Jacksonville, Flare the top 5 cities that reflect the features of the entire nation. In other words, these are the best places to test a product on a mass target audience in a micro way.
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