Tasty test markets
Article Abstract:
Test marketing of new food products makes use of two time-proven rules: avoid testing in areas where the product type is either almost unknown or heavily used; and test in at least two markets which are widely spaced geographically. The cost of test marketing a national brand is between one and two million dollars, and most new food products fail either at the testing stage or after introduction. Other guidelines for test marketing food products include: determining the product's potential appeal; estimating whether the product can be marketed profitably; capability of manufacturing and distributing; simulating actual market conditions for the quality of the product tested; attempting a realistic market saturation; spending no more on advertising than what would be the proportionate amount for the area under normal circumstances. Some companies are experimenting with electronic test marketing methods as a means of keeping costs down. Electronic testing also allows the testing of various factors within a market rather than in different markets.
Publication Name: Madison Avenue
Subject: Business
ISSN: 0024-9483
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
Danger in paradise?
Article Abstract:
The advertising and public relations companies attempting to promote U.S. tourism in the Caribbean, Central America, and South America are encountering many problems. Following riots in Jamaica in January 1985, tourism dropped by 90 percent and government officials are afraid that the island will never recover the lost tourist trade. Many countries do not realize how much income they may be losing as a result of lost American tourist trade. Trouble in one country can also damage the public images of other countries in the region.
Publication Name: Madison Avenue
Subject: Business
ISSN: 0024-9483
Year: 1985
User Contributions:
Comment about this article or add new information about this topic:
Tasty and trendy
Article Abstract:
American consumers spent $400 billion on food in 1985. The most successful new food products respond to the demand for convenient, healthy foods. Gourmet food products that are low in salt, fat or caffeine and higher in fiber and vitamin content have proven especially popular. Products that exploit new cooking or packaging technologies, such as microwave popcorn and soft drinks in aseptic containers, have established lucrative markets that were non-existent a few years ago. Twenty-nine new food products are described.
Publication Name: Madison Avenue
Subject: Business
ISSN: 0024-9483
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The single market - changes in VAT procedures. What's the risk? The unpredictable certainty
- Abstracts: Retailers Dress for Success. Made in America
- Abstracts: A laboratory investigation of alternative transfer pricing mechanisms. Accounting laboratory experiments on human judgment: some characteristics and influences
- Abstracts: Telemarketing SOS. Servicing the world. Toll-free calling for overseas
- Abstracts: Going global. Synergistic telemarketing. International connection