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Sunday, 30 September 2018

Consumer Product Market Testing

In testing consumer products, the objective of the company is to estimate for variables namely, repeat purchase, adoption, trial, and purchase frequency. The company hopes to find all these parables at high levels. In some cases, it will find many consumers trying the product but few purchasing it. Again, find permanent adoption but low purchase frequency.
        They are different methods of consumer goods market testing ranging from the list to the most costly.
 They include the following :

1. Source wave research. In this method of market testing, consumers are first offered the products free of charge to try. Then, they will reoffered  the product or a computer's product at slightly reduced prices. They might be reoffered the product as many as three to five times this is called sales waves, weber company noting how many customers selected that company's product again and their level of satisfaction. Sales wave research can also include exporting consumers to one or more advertising messages or concepts to see the impact of that advertising on repeat purchase.
The advantage of sales wave research is that it can be implemented quickly, conducted with a fair amount of security and carried out without final packaging and advertising. However, its weakness is that it does not indicate the trial rates that would be achieved with different sales promotion incentives since the consumers are selected to try the product. In addition, it does not indicate the brands power to gain distribution and favourable shelf position.

2. Stimulated test marketing. Insulated test marketing, the marketer has to find 30 to 40 qualified shoppers who have been using an already familiar with the type of other brands of the products be tested. These people are then invited to a brief screening of both well known and new commercials or printed ads. Amongst the advertisements is the one for the new product although it is not singled out for attention. After viewing or reading the advertising message, the viewing or reading the advertising message, the consumers are given a small amount of money and are invited into a store where they may buy any items. The marketing notes how many consumers booba a new brand and competing brands. This provides a measure of ants relative effectiveness against competing ads in stimulating trial. Consumers are then asked the reason for their purchase or non purchases. Those who did not buy the new brand are given a free sample. All consumers then go home with the product and use them. Some weeks later, they are reinterviewed by phone to determine purchase attitudes, usage, satisfaction, and repurchase intention and are offered an opportunity to repurchase any products. Simulated test market in has several advantages. It gives fairly accurate results on advertising effectiveness and trial rates and repeat rates if extended in a much shorter time and at a fraction of the cost of using real test markets. Pretests often take only 3 months. The results are incorporated into new product forecasting model to project unlimited sales levels. Marketing research firms have reported that the simulated market testing techniques used accurate prediction of sales levels or products which are subsequently launched in market.

3. Controlled test marketing. This method of market testing requires using a panel of stores which are managed by or supervised by a research firm. The panel of stores agree to carry new products for a fee. The company with the new product specifies the number of stores and geographic locations it wants to test. The research firm handling the market testing then delivers the product to the participating stores and controls chef position, number of faces, displays, point-of- purchase promotion and pricing. Consumers who visit the panel of stores will see the new products being tested and may decide to buy and try it.
        controlled test marketing allows the company to test the impact of in-store factors that limited advertising on buying behaviour. A sample consumers can be interviewed later to give their impressions of the product.
      In controlled test marketing, the company does not have to use its own sales force, give trade allowances or buy distribution. However, controlled test marketing provides no information on how to sell or get middlemen to carry the new products. This technique also exposes the product and its features to the competitors scrutiny.

4. test marketing the ultimate way to test a new consumer product is to put it in full blown test market. The company chooses a few representative cities or towns, and the sales force tries to sell and trade or middlemen on carrying the product and giving it to good shelve exposure. The company puts on a full advertising and promotion campaign in those markets, cities, all towns similar to the one that it would use in national marketing.