TEST MARKET Meaning and
Definition
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Test Market:
A test market refers to a limited geographical area or demographic segment where a company or a marketer introduces a new product or service to gauge its market potential before a full-scale launch. It serves as a tool for assessing consumer response, evaluating marketing strategies, measuring demand, and collecting valuable feedback, which aids in refining marketing tactics and fine-tuning the product.
During the test market phase, a company may introduce the product with minimal marketing efforts to gain insights regarding consumer preferences, pricing, competitive reactions, and overall feasibility. It is a controlled experiment conducted in a real-world scenario that simulates the actual market conditions where the product will eventually be launched.
Test marketing can take various forms such as offering the new product or service to a select group of customers, distributing it in a set number of stores within a particular region, or conducting online surveys and focus groups. The purpose is to gather data on consumer acceptance, demand levels, product performance, and areas for improvement.
Test markets provide valuable insights into a product's viability, potential sales volume, and market dynamics, allowing companies to make informed decisions about whether to proceed with a full-scale launch, modify the product, alter marketing strategies, or discard the concept altogether. It helps in minimizing risks associated with introducing a new product by identifying and addressing potential issues and obstacles in a controlled environment before entering the broader marketplace.
Common Misspellings for TEST MARKET
- rest market
- fest market
- gest market
- yest market
- 6est market
- 5est market
- twst market
- tsst market
- tdst market
- trst market
- t4st market
- t3st market
- teat market
- tezt market
- text market
- tedt market
- teet market
- tewt market
- tesr market
- tesf market
Etymology of TEST MARKET
The word "test market" is a combination of two words: "test" and "market".
The word "test" originated from the Old French word "teste" which meant "an earthen pot". It later evolved to mean "a trial or examination to determine the quality, genuineness, or usefulness of something". This sense of conducting an experiment or trial is the basis for the term "test" as used in the context of market research.
The word "market" originated from the Latin word "mercatus", meaning "a buying and selling or a place of trade". This word subsequently entered Old English as "mearcet" and eventually evolved into the modern English "market".
Together, "test market" refers to a method of market research where a product or service is introduced and evaluated in a specific area or demographic to gauge its potential success before a wider launch.
