Test marketing

The main difference between test marketing and product testing is that normal channels of communication and distribution are used. Changes or innovations are introduced through normal advertising media and retail stores. Again, there are a number of considerations:

• Which area(s) should be used for the test? (typically, TV regions are used)
• How long should the test last?
• Will the selected outlets be willing to stock the product on a test basis?
• How much will it cost?
• Will the opportunity cost be too great? What risk is the manufacturer taking?