Kotler and Armstrong (2012) define test marketing as, “the
stage of new-product development in which the product and its proposed
marketing program are tested in realistic market settings”. Hair et al (2011) explains that test
marketing is an opportunity for organisations to introduce a new product for a
brief period of time, in order to gain vital insight into how potential
consumers will react to the product within a market situation alongside competitors.
This allows management to assess and evaluate the success of the marketing
strategies used. This can be used to identify alternative avenues for
organisations to use, in order to find the best situation granting the highest
possibility for product success. However, there are also high costs associated
with test marketing whilst also being a long process. Furthermore, the sampling
gives competitors the opportunity to sabotage with the market testing. Consist
of the introduction of promotional campaigns that interferes with the normal
market conditions, which can affect the test results.
A sports Example relating to test marketing is The National
Football League (hereafter known as the NFL). The NFL arguably one of the
biggest sports to come over from the Atlantic, which is currently going through
a test marketing period, involving the gradual introduction of more competition
matches being held at Wembley Football Stadium. For instance in 2007 only one
match a year was held within London, currently that has progressed to 3 matches
a year (Slater, 2014). This highlights the growing desire of the NFL product to
capitalise upon the increasing demand for the sport within London, which could eventually
lead to the first overseas franchise since the collapse of the London Monarchs
and the Scottish Claymores (Slater, 2014). Therefore, this shows that the NFL
is using a business model to gradually increase demand surrounding the sport
with the intention of opening a franchise within Europe to gain market
penetration, which could potentially cause a change reaction throughout the
sport and achieving worldwide uptake.
The new sports organisation Tri-Xtreme will be released
within geographical areas capable of sustaining all three sporting activities
consisting of kayaking, mountaineering and mountain biking. For example a
suitable destination for the UK would be Fort William where all three physical
environments are available for instance a lake, mountain range and downhill
bike track exists. This temporary release of the sport, will offer vital
insight of public opinion and whether the organisation should proceed to
national roll out of the service. Furthermore, the sport will be released to a
select number of clubs relating to kayaking, mountaineering and mountain biking,
which will help evaluate the marketing strategy to ensue the correct market
segment is being targeted. Triathlon clubs will also be targeted within the
sample in an attempt to understand wither market penetration is possible, among
a group of individuals with ideal characterises common with the potential new
service.
References
Kotler, P. and Armstrong, G. (2012). Principles of
Marketing. 14th ed.
McDaniel, C., Lamb, C. and Hair, J. (2011). Introduction to
marketing. Mason, Ohio: South-Western.
Slater, M. (2014). NFL could give UK 'more than £100m'.
[online] BBC Sport. Available at:
http://www.bbc.co.uk/sport/0/american-football/29813017 [Accessed 28 Jan.
2015].
Slater, M. (2014). Seven years until London Jaguars?.
[online] BBC Sport. Available at:
http://www.bbc.co.uk/sport/0/american-football/29391069 [Accessed 28 Jan.
2015].
