Test marketing is the process of putting marketing variations in front of customers as a business experiment. It is an extremely common practice that is used to innovate by trying a large number of ideas in the field. Test marketing can also be used to reduce risk by testing marketing strategies in an inexpensive way before scaling them. The following are common examples of test marketing.
Selling products and services on a limited basis before a full product launch. For example, a donut shop that tries 50 new donuts in two locations each to decide which to launch on a nationwide basis.Customer service changes that are introduced as a pilot. For example, a restaurant that introduces a no tipping policy together with an incentive program for employees to earn bonuses when customers are satisfied.
Customer experience testing such as a hotel that experiments with a floor for parents with small children and babies. The rooms on the floor have features such as cribs, toys and complimentary diapers.Distribution experiments such as entering a new region or country on a trial basis.
Experimenting with pricing structures and strategies such as a telecom company that introduces flat pricing in one city to measure the impact on demand.Promotional experiments such as testing variations of an advertisement on a limited basis before a major campaign.
Brand related tests such as releasing a new logo variation to see if it impacts brand recognition and sales.
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