The revolution in test marketing

Date of publication: June 15, 1968

Author: David Harding


The presentation focuses on the use of marketing experimental techniques by most of the Major United States grocery and drug product companies. It will be based on over 100 marketing experiments and simulations. fhree significant improvements in accuracy developed through careful data analysis including the following: 1. Improving the accuracy through greater product exposure control; 2. Using individually paired stores instead of balanced panels of stores; 3. Evaluating the data in matched panels with co-variance analyses instead of using base period data for comparing the data. Basically, the experimentation involves tight control over the marketing variables coupled with the careful statistical analysis. Simulation is replacing testing. Experimentation is applied to pricing, packaging, merchandising, and advertising decisions. The experimental approach is producing definitive and actionable marketing intelligence and predictions. The management value of the research is also quantifiable in this type of study a significant breakthrough.

David Harding


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