04/20/23Marketing Research 1

An experimental procedure that provides an opportunity to test a new product or a new marketing plan under realistic market conditions to measure sales or profit potential.

ESTIMATEESTIMATEOUTCOMESOUTCOMES

IDENTIFY ANDIDENTIFY ANDCORRECTCORRECT

WEAKNESSESWEAKNESSESIN PLANSIN PLANS

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1. Define the Objective:

• What do you hope to learn?

• What are the people or products of interest?

2. Select a Basic Approach:

• Simulated, controlled, or standard test?

3. Develop Detailed Test Procedures:

• How will you execute the study?

• Who will be involved?

• How long will it take?

• How much can you spend?

Six Steps in a Test Market Study

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4. Select the Test Market:

• Market should not be over tested

• Should have little media spillover

• Demographics similar to your target population

• Large enough to provide useful results

• Distribution should be similar to the nation

5. Execute The Plan:

• How long should the test run?

• Who should execute it?

6. Analyze the results:

Use qualitative and quantitative techniques if possible.

Six Steps in a Test Market Study

Population Demographic composition Lifestyle considerations Competitive situation Media coverage and isolation Self-contained trading area Secrecy

Small city

Low chance of being detected

Distribution is forced (guaranteed)

Cedar Rapids, Iowa Charlotte, North Carolina Columbus, Ohio Evansville, Indiana Eau Claire, Wisconsin Grand Junction. Colorado Little Rock, Arkansas Odessa-Midland, Texas Omaha, Nebraska Pittsfield, Massachusetts Tulsa, Oklahoma Wichita, Kansas Wichita Falls, Texas

04/20/23Marketing Research 8

According to Environics Analytics, these are the top 10 cities most closely resembling the country as a whole…

Red Deer, Alta. Waterloo, Ont. Guelph, Ont. Kingston, Ont. Kelowna, B.C. Maple Ridge, B.C. Grande Prairie, Alta. London, Ont. Calgary, Alta. Langley, B.C.

04/20/23Marketing Research 9

04/20/23Marketing Research 10