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Step 7: Selecting and researching potential countries/markets abroad

You are here:Step 7: Selecting and researching potential countries/markets abroad > Implementing the research brief > Evaluating the shortlisted counties in more detail > In-market research >Techniques for formal in-market research >Test marketing


 

 

Test marketing

 

In test marketing, a product is marketed/made available for sale on a limited scale or in a sample market, whereafter sales are measured. In this way, the exporter can collect market data and measure the public's reaction to the product before incurring the expense of a full-scale regional or national sales launch.

Shop testing is the simplest and least reliable method of test marketing. It is normally used to find out which of two possible alternative characteristics is preferred, i.e. one of two price levels, display packs, bottle sizes etc. The method involves selecting two matched groups, each comprising 20 to 24 shops in one or the other form, and the resultant sales are compared after a number of weeks have elapsed.

The principle of test towns is much the same as that for shop testing except that two matched towns are chosen for the purposes of running the test. The method is most valuable when it is used as a basis for establishing preferences about advertising schemes or price levels. One of the problems associated with this technique is finding towns which are typical of the country as a whole. Regional differences in consumer attitudes and behaviour often make a valid selection almost impossible.

In area testing, certain geographical areas - usually selected in pairs - are used as a basis for comparing two different approaches to launching a new product. The product is put on the market in almost final form, sales results are monitored, and at a later stage, a consumer attitude survey is conducted.

The geographical regions chosen as test areas must be reasonably typical of the country as a whole and they must be big enough to produce sales figures that can be multiplied upwards to arrive at a national sales forecast. While area test marketing is a very useful tool, it can be very costly and its results can sometimes be misleading.

 
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tep 7: more information

Step 7: Selecting and researching potential countries/markets abroad
      Preparing a research brief
      Implementing the research brief
            Compile a shortlist of countries
            Evaluate the shortlisted countries in more detail
                       Focusing on the customer – Undertaking marketing research in your
                       foreign target market
                       Circumstances favouring in-house research
                       Circumstances favouring agency research
                       Commissioning an external market research agency
                       Checklist for selecting a marketing research agency
                       Desk research
                       In-market research
                             Techniques for formal in-market research
                                    .Personal interviews
                                    .Telephone interviews
                                    .Postal surveys
                                    .Store visits
                                    .Motivational research
                             Problems with in-market research
      Preparing a research report

 

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More information on Step 7
Learning to export...
The export process in 21 easy steps
Step 1: Considering exporting
Step 2:Current business viability
Step 3:Export readiness
Step 4:Broad mission statement and initial budget
Step 5:Confirming management's commitment to exports
Step 6: Undertaking an initial SWOT analysis of the firm
Step 7:Selecting and researching potential countries abroad
Step 8: Preparing and implementing your export plan
Step 9: Obtaining financing for your exports
Step 10: Managing your export risk
Step 11: Promoting the firm and its products abroad
Step 12: Negotiating and quoting in exports
Step 13: Revising your export costings and price
Step 14: Obtaining the export order
Step 15: Producing the goods
Step 16: Handling the export logistics
Step 17: Export documentation
Step 18: Providing follow-up support
Step 19: Getting paid
Step 20: Reviewing and improving the export process
Step 21: Export Management
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