Mirka Beauty Products, a beauty company, was testing the quality of its newly developed cream by offering it only in the city of Brightland prior to its national launch. Unfortunately, two of its competitors released similar products before Mirka Beauty could release its product in the market. Realizing that a lapse had occurred, Mirka Beauty released its product in the market emphasizing an additional moisturizing feature which would address customers' needs during the winter season that was just around the corner. Mirka Beauty had prior information about these customer needs because of a series of tests it had conducted before releasing the product which helped it launch the product with the additional feature.
-Which of the following statements is correct about the test marketing carried out by Mirka Beauty Products?
A)It avoids promotions such as the use of coupons.
B)It uses all the elements of the marketing mix.
C)It costs less and takes much less time than premarket tests.
D)The product appears in all the retail outlets of a country with reduced pricing.
E)A firm cannot estimate demand for the entire market based on a test marketing.

Question

Quizplus · Accepted Answer

Test marketing involves using all the elements of the marketing mix to introduce a product in a limited market to evaluate its success before launching it nationally. Option A is incorrect because test marketing can involve promotions such as the use of coupons. Option C is incorrect because premarket tests are different from test marketing in terms of the scope and objective. Option D is incorrect because test marketing is typically done in a limited market, not all retail outlets of a country. Option E is incorrect because firms can estimate demand for the entire market based on test marketing, although it may not be as precise as a national launch.

Mirka Beauty Products, a Beauty Company, Was Testing the Quality