MANAGEMENT

Detailed explanation-1: -By measuring levels of consumer awareness, product trial, repeat purchase, market share, and sales volume, the test market gives some indication of the productivity of the elements of the marketing plan. These measures are the basis for making the “go/no-go” decision.

Detailed explanation-2: -Test marketing is a method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis to test markets before a wider release. It’s important to note that customers exposed to the product or campaign may be part of a test group without the customers’ knowledge.

Detailed explanation-3: -Test marketing is the final stage before commercialization; the objective is to test all the variables in the marketing plan including elements of the product. Test marketing represents an actual launching of the total marketing program, done on a limited basis.

Detailed explanation-4: -There are three types of test marketing-consumer goods test marketing, industrial testing and marketing-effectiveness testing. All three types are used in different test markets with different audiences to gather the most accurate feedback data.