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    Test Marketing: Pros/Cons

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    After products and marketing programs have been developed for new products, they are usually tested in the marketplace. What is test marketing? How may a company benefit from the use of test marketing? How can test marketing cause problems for a company?

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    Test marketing is the process of introducing new products into a specific geographic area to simulate the process of a full-scale product launch. Typically, cities are chosen based on factors like media activity, market size, and demographics. Sometimes, multiple test market locations are selected to test out different promotional strategies, pricing methods, and advertising to determine the best method prior to a bigger release.

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    Solution Summary

    This solution explains text marketing, and how a company may benefit from the use of test marketing. It also explains how test marketing may cause problems for the company. Solution provides examples.