Simulated test marketing

• 1. Simulated Market Testing Kourtney Roy

2. DefinitionThe presentation of advertising and other promotional materials for several products, including a test product, to members of the products target market. 3. AccuracyMost simulated test marketing suppliers claim to have an average accuracy within +/-10% of theactual forecast up to 90% of the time. 4. TechniquesThe techniques of most vendors is the sameand are considered to be highly effective. The major vendors can differentiate their services and customize the models with thelatest research trends. 5. Data CollectionData was originally collected via mallsand other centralizedlocations.This was quickly replaced by the internet due to our fast paced lifestylesand the ever growing convenience of the internet. 6. Categories for simulatedtest marketingPurchase intent Preference share 7. Price Researching firms will offer simulated market tests for anywhere from $25,000 to $100,000. This is in comparison to the $1,000,000 or more that full scale test marketing would cost. 8. Shelf SetQuantify the impact of product assortment, aisleflow, pricing and in-store signage using the industrys leading online virtual shopping technology. Compared to traditional testing methods, our virtual solutions let you quickly gather and analyze shopping data, providingunprecedented insights for shopper marketingand category management decision making.http://www.visioncritical.com/products/vision- critical-applications/shelfset 9. Example of virtual shopping capabilitieshttp://www.youtube.com/watch?v=CiIFL3CfEGI 10. All in allSimulated test marketing is an ever growing fieldthat is cost and time effective.The high price of failure makes companies moreprone to stick to regular test marketingmethods.