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Session 9 - Market Testing

The document discusses market testing, which involves introducing a product into realistic market settings before a full launch. It defines market testing, outlines what information it can provide, and describes different methods of market testing including test markets where products are tested in select cities before a national launch.

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Khánh Huyền
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85 views

Session 9 - Market Testing

The document discusses market testing, which involves introducing a product into realistic market settings before a full launch. It defines market testing, outlines what information it can provide, and describes different methods of market testing including test markets where products are tested in select cities before a national launch.

Uploaded by

Khánh Huyền
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Product Management

Session 9
Market Testing
Session agenda
• OTB
• Market testing
• - What is it?
• - Types of market testing
• Methods of Market Testing
Housekeeping Assessment 3
• Part A: Presentation by video
upload not in-class. Due end of
week 6
• Part B: Presentation slides with
supporting narrative by 9 July
Assessment 2 – Krama Retreat
• Krama memo 3 due 22nd June
(extra 2 days)
• Krama Memo 3 due 2nd July (extra
1.5 weeks)
SLG Update
• Details of requirements in new
Subject Learning Guide on LMS
Week 6 arrangements
Wednesday – OTB/Krama Debrief/
project consultations
Thursday – video presentation time
Lecturer available via MS Teams
On the Balcony
Market Testing
NPD Process
Market Testing

➢ This is the stage where the product must be


tried out in selected market segments.
☛How do you select the market segment to be
tested?

➢ Market test is basically done as a risk control


tool.
☛ How does it control risks?

➢ It is experimental marketing at minimum cost


and risk.
Definition
Test marketing is the stage at which the
product & marketing programs are
introduced into more realistic market
settings.
Philip Kotler
Market Tests Must Have
Teeth
 Managers must be wiling to take action
based upon test results
 Negative test market results are sometimes
ignored to support the CEO’s pet project!
 Insights gained include:
 Solid sales forecast
 Diagnostic information to adjust program
Types of information that
might be lacking
 Manufacturing process; can we scale up
production easily?
 Vendors and resellers; will they perform to
plan and meet their promises?
 Services infrastructure: adequate?
 Customers: will they buy and use as
expected?
 Cannibalization: what will be the extent?
“JUMPING INTO A STARTUP
WITHOUT MARKET TESTING
CAN BE LIKE SKYDIVING
WITHOUT A PARACHUTE”
Consumer-Goods Market Testing
This test is conducted to know the consumer
behavior in terms of:

➢ Trial: Whether a consumer will try a product, at least


once.
➢ Repeat: Whether the consumer will repurchase it after
the trial.

➢ Adoption: Whether the consumer accepts the product


and will purchase it again.
➢ Purchase Frequency: How often the consumer will buy
the product.
Market Testing Methods
Market Testing in NPD / NSD
4. Test Markets: Under this, the firm
ull-
chooses the representative cities where
the f done
fledged launch of the new product isn to
starting from the promotion campaigthe he
ultimate sales. Once it is successful, firm
t goes
for the national launch.
The Test Market

➢ Several test markets cities are selected


➢ Products are sold in the regular
channels and advertised at
representative levels in the loal media
➢ Once used to determine whether to
launch the product
➢ Now it is used more often to decie how
best to launch
Cảm ơn bạn

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