Test Marketing

Test Marketing

Test Marketing Jonathan Poland

Test marketing involves testing different marketing strategies or variations on customers in order to gather data and evaluate their effectiveness. It is a way for businesses to experiment and try out new ideas in a real-world setting, and can be a useful tool for innovation and risk management. By testing marketing strategies on a smaller scale, businesses can get a sense of how they might perform when they are rolled out more widely, and make adjustments or changes as needed before committing significant resources. The following are common examples of test marketing.

Products & Services
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
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
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
Distribution experiments such as entering a new region or country on a trial basis.

Pricing
Experimenting with pricing structures and strategies such as a telecom company that introduces flat pricing in one city to measure the impact on demand.

Promotion
Promotional experiments such as testing variations of an advertisement on a limited basis before a major campaign.

Branding
Brand related tests such as releasing a new logo variation to see if it impacts brand recognition and sales.

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Pricing Techniques Jonathan Poland

Pricing Techniques

Pricing involves carefully considering various factors in order to determine a price that will maximize a company’s profits over the…

Business Objectives Jonathan Poland

Business Objectives

Business objectives are specific targets or goals that an organization, team, or individual strives to achieve within a certain time…

Knowledge Work Jonathan Poland

Knowledge Work

Knowledge work refers to work that involves the creation, use, or application of knowledge and expertise. It is characterized by…

Dismissing Employees Jonathan Poland

Dismissing Employees

Letting go (aka firing) employees is a difficult and sensitive task, and it’s important to handle it with care and…

Brand Switching Jonathan Poland

Brand Switching

Brand switching refers to the act of a customer switching from a brand that they were previously loyal to, to…

What is Supply? Jonathan Poland

What is Supply?

Supply refers to the amount of a product or service that is available for purchase at a given price. In…

Total Addressable Market Jonathan Poland

Total Addressable Market

A total addressable market (TAM) is the total potential revenue that a company can generate from its products or services…

Customary Pricing Jonathan Poland

Customary Pricing

Customary pricing refers to the pricing practices that are considered typical or normal in a particular industry or market. This…

Recruiting Jonathan Poland

Recruiting

Recruiting refers to the process of attracting, screening, and selecting qualified candidates for employment. This process is essential for any…

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Test Marketing Jonathan Poland

Test Marketing

Test marketing involves testing different marketing strategies or variations on customers in order to gather data and evaluate their effectiveness.…

Best Practices Jonathan Poland

Best Practices

Best practices are generally accepted guidelines for achieving a specific goal. In a particular field or industry, best practices are…

Artificial Intelligence Jonathan Poland

Artificial Intelligence

Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and act like…

Strategic Planning Jonathan Poland

Strategic Planning

The strategic planning process is a systematic way for an organization to set its goals and develop the actions and…

Business Ethics Jonathan Poland

Business Ethics

Business ethics refer to the principles and values that guide the behavior of individuals and organizations in the business world.…

Selling Points Jonathan Poland

Selling Points

Selling points are the key features or benefits of a product that make it attractive to potential customers. These selling…

Implementation Risk Jonathan Poland

Implementation Risk

Implementation risk refers to the potential negative consequences that a business may face as a result of difficulties or failures…

Cost of Capital Jonathan Poland

Cost of Capital

The cost of capital is the required rate of return that a company must earn on its investments in order…

Price Promotion Strategy Jonathan Poland

Price Promotion Strategy

A price promotion is a marketing strategy that involves temporarily lowering the price of a product or service in order…