Test Marketing and Customer Interaction

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Test Marketing and Customer Interaction

Postby Anup V » Tue Aug 07, 2012 11:19 pm

The amount of test marketing needed varies with each existing product as well as new product. Test marketing cost can be enormous, and test marketing takes time that may allow competitors to gain advantages. When the costs of developing and introducing the product are low, or when management is already confident about the new product, the company may do little or no test marketing. “The stage of new-product development as well as existing product where the product and marketing program are tested in more realistic market settings.”

Using standard test markets, the company finds a small number of representative test cities, conducts a full marketing campaign in these cities, and uses store audits, consumer and distributor surveys, and other measures to gauge product performance. The results are used to forecast national sales and profits, discover potential product problems, and fine-tune the marketing program.

Several research firms keep controlled panel of stores that have agreed to carry new products for a fee. The company with the new product specifies the number of stores and geographical location it wants. The research firm delivers the product to the participating stores and controls shelf location, amount of shelf space, displays and point-of-purchase promotions, and pricing according to specified plants. Sales results are tracked to determine the impact of these factors on demand.

Companies also can test existing or new products in a simulated shopping environment. The company or research firm shows ads and promotions for a variety of products, including the new product being tested, to a sample of consumers. It gives consumers a small amount of money and invites them to a real or laboratory store where there may keep the money or use it to buy items. The researchers note how many consumers buy the new product and competing brands.This simulation provides a measure of the trial and the commercial‟s effectiveness against competing commercials. The researchers then ask consumers the reasons for their purchase or non purchase. Some weeks later, they interview the consumers by phone or determine product attributes, usage, satisfaction, and repurchase intensions. Using sophisticated computer models, the researchers then project national sales from results of the simulated test market.

Objectives of the Study

The objectives of this research are as follows:

 To study the level of awareness and buying behavior of MALA‟S Jam in the mind of customers.
 To comprehend the sales level of the Jam in distinct areas of the Pune city.
 To comprehend the reasons for nil purchases.
 To study the satisfaction level of the customers.
 To study the demand of particular flavor by the consumers

Scope means area covered. Following things are covered in this research:

I. The aim of the project is to study test marketing and customer interaction.
II. The survey covered 500 customers from distinct areas of Pune city.
III. At each outlet 25 customers were covered.

There was a shortage of time to approach each and every respondent for survey and the budget of the survey was limited, which was a major limitation.

This was the major limitation from the side of the respondents at the time of inviting for free taste of the jam at the canopy. They were not willing to spend much time over there.
Anup V
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