Test marketing is a standard marketing research activity where a new product and its associated marketing plan are introduced into a limited, but representative, geographical area or market segment. The primary purpose is to gauge consumer response, evaluate the marketing mix (product, price, place, promotion), and forecast sales potential before committing to the significant expense of a full-scale national or international launch. This controlled experiment provides valuable data to refine the strategy or decide against the launch altogether.

B. Experimentation: This is a broad term for any research method involving controlled variables. Test marketing is a specific type of marketing experiment, but it is not the most precise term for the described activity.

C. Segmentation: This is the process of dividing a broad market into distinct subsets of consumers with common needs or characteristics. It is a prerequisite for test marketing but not the trial run itself.

D. Positioning: This refers to the strategic process of creating a distinct and desirable image of a product in the minds of the target consumers relative to competing products.

1. Kotler

P.

& Armstrong

G. (2021). Principles of Marketing (18th ed.). Pearson. In Chapter 8

"New Product Development and Product Life-Cycle Strategies

" the section on "Test Marketing" states

"Test marketing is the stage at which the product and its proposed marketing program are tested in realistic market settings." (p. 259).

2. Grewal

D.

& Levy

M. (2020). Marketing (7th ed.). McGraw-Hill Education. Chapter 12

"Developing New Products

" describes test marketing as a method to "test the market for the new product with a trial batch of products... A test marketing effort uses all the elements of the marketing mix; it includes promotions such as advertising and coupons

just as if the product were being introduced nationally." (p. 389).

3. Iacobucci

D. (2021). Marketing Management (6th ed.). Cengage Learning. Chapter 6

"New Products and Innovation

" defines test marketing as a process where "a company launches a new product in a small part of the target market to test its marketing plan and learn how customers will respond." (p. 134).