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.

Learn More
Change Management Jonathan Poland

Change Management

Change management is the process of planning and implementing changes within an organization. It involves analyzing the current state of…

Prototyping Jonathan Poland

Prototyping

A prototype is a preliminary version of something that is used to test and refine an idea, design, process, technology,…

What is Demand? Jonathan Poland

What is Demand?

Demand refers to the quantity of a particular good, asset, or other value that market participants are willing and able…

Design to Logistics Jonathan Poland

Design to Logistics

Design for logistics involves designing products with the entire supply chain in mind, including manufacturing, packaging, shipping, warehousing, merchandising, and…

Delegation 101 Jonathan Poland

Delegation 101

Delegation is the act of assigning specific tasks and responsibilities to others, along with the necessary authority to complete them.…

Curiosity Drive Jonathan Poland

Curiosity Drive

Curiosity drive, or the desire to obtain new information, is a fundamental human motivation that drives learning and exploration. In…

Economic Moat Jonathan Poland

Economic Moat

An economic moat is a concept in business strategy that refers to a company’s ability to maintain a competitive advantage…

Problem Management Jonathan Poland

Problem Management

Problem management is an important aspect of IT service management that involves identifying, analyzing, and resolving problems that can impact…

Value Creation Jonathan Poland

Value Creation

Value creation refers to the process of creating outputs that have a higher value than the inputs used to produce…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Price Umbrella Jonathan Poland

Price Umbrella

A price umbrella is a pricing strategy in which a company sets a high price for a premium product or…

Conceptual Framework Jonathan Poland

Conceptual Framework

A conceptual framework is a theoretical structure that represents and organizes a set of concepts and ideas. It is used…

Organic Growth Jonathan Poland

Organic Growth

Organic growth refers to an increase in revenue that is generated through a company’s own efforts, such as marketing, innovation,…

Alliance Marketing Jonathan Poland

Alliance Marketing

Alliance marketing refers to a strategic partnership between two or more organizations in which they agree to collaborate on marketing…

Inverted Yield Curve Jonathan Poland

Inverted Yield Curve

The inverted yield curve is a financial phenomenon that has garnered significant attention because of its historical association with upcoming…

Algorithmic Accountability Jonathan Poland

Algorithmic Accountability

Algorithmic accountability is the concept of holding algorithms and the organizations that use them accountable for the decisions they make…

Quality Objectives Jonathan Poland

Quality Objectives

Quality objectives are specific, measurable targets that organizations set in order to improve the quality of their products or services.…

Price Optimization Jonathan Poland

Price Optimization

Price optimization is the process of using data and analytical methods to determine the optimal price for a product or…

Risk Contingency Jonathan Poland

Risk Contingency

A risk contingency plan is a course of action that is put in place to mitigate the negative consequences of…