Test Marketing

McDaniel et al define test marketing as “the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation”. It enables a company to test a certain product and its marketing programme that can consist of: a positioning strategy, advertising, distribution, pricing, branding and packaging and budget levels (Armstrong et al, 2012). The duration and amount of test marketing depends on the product’s risk assessment, funding and value. There are several test marketing strategies, varying in cost and duration that organisations may choose to adopt such as sales-wave research, simulated test marketing, controlled test marketing and test markets (Kotler & Keller, 2012). Test marketing enables companies to receive product feedback in relation to its marketing mix.

            An example of test marketing in the sporting world is that of the Nike Free shoe. After thorough prototype testing, Nike decided to position the shoe as a training product, and not as a replacement running shoe, wanting consumers to see the product’s potential to strengthen one’s foot. Before its commercial release, the Nike Free was launched under limited and very tight distribution (Financial Review, 2012). At first the Nike Free was distributed uniquely to specialized running stores and to key individuals such as running coaches and podiatrists. The company wanted to introduce the shoe as a training concept before its potential worldwide exposure. As part of their test marketing strategy, Nike wanted the shoe distributed directly to its target market: runners. To do this, Nike employed running experts drove vans to specific running spots in the US, Europe and Australia, distributing the shoe for testing. Staff even offered gait analyses to runners testing the Nike Free shoe. This labour intensive, basic tactic enabled Nike to reach its consumers directly and get real-time feedback.

            To test market my new sport format Racket-Hurler, I will conduct cost effective test markets. I have selected Liverpool and Newcastle as my two test markets. Liverpool because of its strong Irish influence, and Newcastle because of its large student population coupled with its strong sport programmes. To reach my target market of 14-25 year old active people, I will be introducing the sport in 2 schools and 2 universities in each city for a duration of 2 months. The institutions will be selected on their size and ability to lend a facility (football pitch) and equipment (balls, rackets). Casual sign up sessions will be set up, with quick surveys (see Appendix A) distributed to players at the end of the sessions to receive feedback. Advertising will mostly be done through posters and flyers distributed and displayed on school premises, with the sport’s logo (see Appendix B) at the forefront of the advertisement initiative. Where pitches are in the proximity of the actual establishment, a friendly competition will be set up, where people can walk up and have a shot on goal. The speed of the shots will be measured via radar gun with the fastest goal scorer winning a prize.

500 words.

References:

McDaniel, C., Lamb, C. and Hair, J. (2011) Introduction to Marketing. 11^th edn. China: Cengage Learning.

Armstrong, G., Kotler, P., Harker, M. and Brennan, R. (2012) Marketing An Introduction. 2^nd edn. Harlow: Pearson.

Kotler, P. & Keller, K.L. (2012) Marketing Management. Global Edn. Harlow: Pearson Education.

Financial Review (2012) Product Development from Concept to Customer. Available at: http://www.afrbiz.com.au/media/k2/attachments/Nike_Case_Study_Ed_7.pdf (Accessed: 25 January 2015).

Appendix A:

Survey

1.On a scale from 1 to 10 how much did you enjoy the session?      

2. Would you play Racket-Hurler again?     Yes       No

3. Would you recommend the sport to a friend?      Yes      No

4. What didn’t you like about the session and the sport in general?

5. Any suggestions to make Racket-Hurler more enjoyable?

6. Any additional feedback?

Appendix B:

                                                                           Logo