As the specialist practitioners of market modelling worldwide, NOVACTION's learning curve extends over fifteen years. Today, our history of marketing experimentation on test product mixes and consumer response benchmarks is computerised in a global databank. This paper discusses how DESIGNOR SYSTEM - its models and its databank - can support the marketing mission to develop profitable new brands through systematic understanding of consumer values.
The U.S. test marketing scene has been going through revolutionary changes since 1980 with the advent of electronic technology with high powered minicomputers. It is now possible to collect supermarket laser scanner sales data, TV viewing patterns, packaged good purchase histories and household demographics into a single (household) source database. These data enables us for the first time to realistically evaluate the cause-and-effect relationship of many marketing variables such as advertising weight and scheduling, promotional synergy, commercial copy quality and their relationship to sales. There are three major suppliers of these test marketing services in the U.S. These are Information Resources, Inc., SAMI/Burke Inc. and A.C. Neilsen. The second part of this paper presents a new test marketing technology provided by SAMI/Burkes Test Marketing Group for capturing all panelist purchases through a supplementary data wand. In SAMI/Burkes ViewScan markets, panelists use the data wand at home to supplement purchase records gathered in scanner grocery stores by means of a scan wand. Data obtained through this combined method are presented and comparison made with respect to store scanner only data to show the significant improvement on data quality and coverage, especially in health and beauty aids and over-the-counter drug categories.
This paper shows how RBL responded to marketing managements' changed needs by adapting mini-testing methodology to reduce the time necessary for testing in a way which preserved the extended observation of the repeat buying behaviour of panellists as the basis for forecasting stable repeat purchasing rates. The standard set for the new methodology in terms of its success was the ability to provide predictions comparable with standard 20-24 week Mini-Test Market estimates of volume potential. This paper describes how the examination of Mini-Test Market data was used to build a model using the negative exponential, and how this model was shown to be capable of predicting the long term repeat purchase rate of FMCG products on the basis of 12 elapsed weeks observation of repeat purchasing data comparable with estimates achieved in the standard 20-24 week Mini-Test.
This paper has attempted to demonstrate the benefits of integrating two quite distinct modelling processes, each based on a micro-modelling philosophy. In particular, it has shown how early quasi test-market volume predictions (such as provided by a Microtest type analysis) can be modelled at a variety of prices in addition to the core price contained within the concept proposition mix, and how valuable this can be to identify optimal pricing points. At the same time, the value of MicroTest type trial and volume data can make traditional Brand/Price Trade-Off modelling considerably more sensitive.
The constantly developing equipment of outlets in electronic check-outs offers new possibilities of responses to manufacturers' information needs. In fact, the installation of test zone like the SECODIP SCANNEL proves, at the same time, the dynamism of research companies and their willingness to apply new methods in the market research field. In France, the SCANNEL concept has been used by SECODIP since 1985. A test zone is already in action while 2 to 4 zones are likely to operate during the years 1988/1989.
Testmarket simulation can be used to predict the market share of a new product before its market introduction and it can provide diagnostic information concerning the product design, packaging, pricing and advertising. This information enables the product manager to take corrective actions before spending large sums on production, distribution and mass advertising, as is necessary for launching a new product. The method is comparatively fast and can maintain secrecy from competitors. This paper will describe the basic principles of TESI, the testmarket simulator of G&I (Nuremberg). It will also deal with special test designs, with methods to attain diagnostic information and with pricing research.
I have been asked to sum up the learnings of this session and to provide some feedback to the presenting institutes on the future perspectives of the various instruments designed for testing marketing alternatives.
In France, the new product sales forecasting activity has progressively left the area of measurements done in a real environment in favour of simulated test: those tests are usually cheaper, shorter and much more confidential. The main purpose of this paper is to show empirical evidences that : - Some of the underlying assumptions made a few years ago by the model-builders are to be reviewed today; - It is impossible to ignore definitely measurements done in real conditions.
Most advertising designs work with non-economic indicators on the level of information and attitude. Thus, a methodological problem - tests with economic advertising control are very difficult to execute - is substituted by another one. For the validity of the information and attitude indicators is based on the assumption of a step process in buying decision, the purchasing act necessarily resulting from the declared readiness to buy. Only experimental micro test markets like GfK BehaviorScan are appropriate for questions concerning economic advertising success, advertising success including the complete marketing success, and the course of time.
The Agrochemical division of Monsanto in Europe were looking to develop a means to evaluate their new herbicides in terms of their likely volume potential in the market. Research International was briefed to adapt a simulated test market procedure that had been developed for fast-moving consumer goods to the specific requirements of agrochemicals. MicroTest was therefore adapted to evaluate Azural, a new Monsanto brand planned for launch in France in the near future. From this research project volume estimates for the brand were made.
Product designing and pricing are two of the most important marketing decisions. Test marketing is one strategy to get better informations to evaluate the referent alternatives. Pre-test marketing evaluation is another research strategy which becomes more and more popular due to its favourable cost-time-accuracy profile. Still less expensive and time consuming are laboratory simulations based on conjoint and other decision analysis approaches such as information display matrix treatments A powerful new package of an interactive decision analysis system (IDAS) is presented. This approach amalgamates a realistic display matrix elaboration, a completely individualised conjoint analysis and some validity checks. The system develops understandable trade-offs of product features and prices on an individual level and offers opportunities for benefit segmentation. The system is interactive; within a researcher module the product area, the attributes and the levels to be analysed may be defined, within the respondent module one works through a sequence of tasks, thus delivering to the researcher the informations required. These informations allow to optimise the product features and price.
We are living in a time in which consumers consider brands and products as more or less interchangeable. In this context, advertising offers a solution to marketing executives how to avoid this dilemma. It allows for instance to differentiate brands and products, to stand out against competitors and to develop a brand personality as well as an advertising property. But in many cases, advertising success means higher sales, that is, it influences consumer behaviour. Experimental micro-test-market systems, for instance BehaviorScan - are available. In order to measure actual consumer buying behaviour as a reaction to different marketing alternatives, including TV-advertising. These systems enable the decision-maker to vary the individual marketing components step by step, and thus to find out which strategies will later be successful on a national basis. This experimental work in the micro-test-market helps marketing executives to put together a complete picture of the effects of their marketing measures by combining different components. Advertising continues to be a decisive mainstay in the mix of marketing tools - and it is above all TV-advertising which occupies the most important rank. Therefore we are confronted with some decisive questions when thinking about the use of advertising - TV-advertising - in a test-market system.