Test market – Definition, what it is and concept

The test market is a tool of marketing which is used to check if there is a sufficient amount of demand for a new product that is intended to be introduced to the market.

You can also say that a market The test serves the marketing to know if a new product meets the wishes and needs of the target market to which it is directed.

In addition, we must clarify that, although a product apparently seems successful, it does not necessarily mean that when it is introduced to the market it will be a successful business I would wait.

Therefore, it is essential to perform a test of market that measures the trial or first purchase rate, the repurchase rate and the frequency of purchase of the product. This is done with the purpose that the company be more sure of the decisions you make in the introduction to new products market.

Types of test market

We can name three types of test market:

Open test market

On the one hand, to perform a market test open usually use a small group of people who belong or form part of a real market.

Of course, this test is based on a marketing plan previously prepared for the launch of a new product with the purpose of achieving the highest probability of success and avoiding unnecessary risks for the company.

Since what is intended is to verify if it is viable or not the proposal of the marketing plan for the product launch.

The objectives what is expected to be achieved are:

  • Determine quantitatively the potential of sales for a new product.
  • Establish possible problems that may be present in the marketing plan implemented in the product launch.
  • Test the effectiveness of the strategies of marketing used.

Closed test market

So a closed market test is limited to analyzing selected elements of the marketing plan such as promotions, sales price, communication campaigns among many of those that can be mentioned.

Then, what is intended is to determine how efficient are each of the selected aspects, through the test of the market. It is required that the group of people under investigation possess homogeneous conditions to obtain a better result from the market of the test.

Consequently, what interests to know are the attitudes and behaviour of the group of people investigated against the new product.

Simulated Test Market

On the other hand, the simulated test market consists of representing a simulated real market situation, in order to observe how consumers react to changes in some or some of the variables of marketing.

Above all, this type of test allows to obtain very important information, but it is obtained in an economical and very fast.

Likewise, a simulated test market can be created using computer means and through the use of computers to obtain information.

What is measured in a test market?

The most important elements that are measured are:

Test rate

It turns out that the measure that quantifies the proportion of people who buy a product for the first time is known as the test rate, that is, they are willing to test or test with the use of a new product.

Buyback Rate

On the other hand, this rate determines the number of people who would be willing to buy the product again or the people who would buy it back.

Purchase frequency

Finally, this data measures the quantity of a product that the market group is willing to buy and how often it will make its repurchase.

Test Market Steps

The steps that must be followed to apply the test market tool are the following:

  1. Problem Statement.
  2. Preparation in technical form.
  3. Realization and application of the tool.

Advantages and disadvantages of using a trial market

Among the advantages and disadvantages we can find the following:


The advantages most important that can be obtained from using a trial market are:

  • It allows the company to know if they can achieve the objectives of the marketing plan.
  • Reduces the risk of failure to launch and introduce new products to the market.
  • Prevents the company from losing prestige and profitability, by minimizing the risks in the entry of new products.


Between the disadvantages that can be mentioned are the following:

  • It can be difficult to select the people who have characteristics that are homogeneous or find a geographical area suitable for the market test.
  • It can be difficult to determine the time of duration of the test.
  • The competition could have knowledge of the test, which deforms and distorts the original objectives that are wanted achieve.

To end, we can indicate that any tool that a company can use to obtaining information that prevents you from taking unnecessary risks should be
used Since that way business decisions would be better focused to achieve your marketing goals; especially when trying to launch or introduce new products to the market.