MGT252H5 Chapter Notes - Chapter 10: Test Market, Marketing Strategy, Innovation Management
Document Summary
Distributors, suppliers, competitors, customers etc: screening new-product ideas to spot good ideas and drop poor ones asap, r-w-w: real, win, worth it, concept development and testing. An idea for a possible product that the company can see itself offering to the market. A detailed version of the new- product idea stated in meaningful consumer terms. Company finds a small no. of representative test cities, conducts a full marketing campaign in those cities, and uses store audits, consumer and distributor surveys and other measures to gauge product performance. Results are used to forecast national sales and profits, discover potential problems, and fine- tune the marketing program. Most widely used approach for major in-market testing. Controlled test marketing systems (e. g. acnielsen"s scantrack and iri"s behaviorscan) track consumer behavior for new products from the tv set to the checkout counter. Cost less and completed much more quickly than standard test markets: retail distribution is forced in the first week of the test.
