City/Regional Test Markets

City and regional test markets may provide the most reliable real-world feedback on new product success. However, small companies generally do not conduct formal market research field studies in a controlled group of stores, where panels of stores are matched and distribution, in-store merchandising, and advertising is done for you by the market research company for tens of thousands of dollars per test group of stores.

For larger companies, test-marketing techniques include:

  • simulated market tests with target consumers in a controlled situation
  • controlled market tests with a panel of actual retail stores
  • computer market simulation modeling

Whether your business is small or large, the best test of a product may often be actual market conditions, despite the fact that you'll be paying a disproportionate amount of trade, sales, and marketing attention to the product test sites.

Related Resources

Qualitative Research

Peer Comments

only works for large companies

This is all fine and dandy, but obviously, I am way too small to use this approach. I'd like to know what microbusinesses are doing along this same idea..??
BIZOWNER from Albuquerque, NM - Add to my Personal PeerSphere - 6 years ago

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