Test Marketing

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].