Test Marketing

If the product passes consumer tests and functional, the next step is test marketing, the stages at which the marketing program and product are introduced into more realistic market settings. Test marketing provides the marketer experience along marketing the product before going to the high expense of full introduction. It allows the company test the product and its complete marketing program-advertising, distribution, positioning strategy, branding and packaging, pricing and budget levels.

The amount of test marketing required varies with each new product. Test marketing costs may be enormous, and it takes time that can allow competitors to achieve advantages. When the prices of developing and introducing the product are low, or while management is already confident regarding the new product, the company can do little or no test marketing. Companies frequently do not test- market simple line extensions or copies of winning competitor products.