The tool for market research Essay Example | Topics and Well Written Essays - 500 words

The tool for market research - Es severalise ExampleTest merchandise gives significant insight which is needed by a company in order to compete effectively in its market. For mavin, this tool permits a business brass instrument to test the impact of alternative market plans. Since a test market is typically smaller than the whole market, investing in a test selling effort in 10 cities is more rational for a large company than getting into a full-blown nationwide product launch. Test market as the name implies provides companies with a clear idea of whether a marketing effort is strategic or not without shouldering the huge cost of the whole marketing campaign in the entire market. Test marketing also allows companies to test multiple strategies without affecting the overall image of its products. For example, a company which wishes to embark on a new marketing approach and is choosing on three different ones depart find it impossible to launch the three strategies on the enti re market. Thus, it will opt to use test marketing in order to ascertain the best approach for its product at lesser cost. However, the utilization of test marketing as a market research tool is dependent on the internal competency and external market situation of a company. According to one of its executives, In our fieldprimarily higher priced cosmetics not geared for mass distributionit would be unnecessary for us to test the market. When we develop a product, say an improved liquid makeup, we know its full-Brownell because we are familiar with the field.