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.
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.
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.
In its major food and drink forecasting study across West Europe (NUTRITION 1990), GIRA predicted the volume decline in food and drink markets, but compensated by an increase in value in food markets. The explanation of this paradox is that the perceived quality of products will improve by an increasing penetration of improved or modified products into standard mass markets : GIRA has coined the term MICRO-MARKETS to describe these very specifically targeted products. GIRA has found since the middle of the 1970's an increasing number of concrete cases where consumers are prepared to pay a higher price for "better" food products.
This paper sets out to show how a technique which was originally developed simply as a means of eliminating the fundamentally unacceptable product before it incurred substantial losses in test market, has shown itself to be capable of much more. The emphasis of the paper is on a series of case histories which illustrate the ability of micro-market testing to provide the basis of accurate volume estimates, to differentiate between price levels and to provide a speed of response and a degree of flexibility which would be beyond conventional test marketing. A second purpose of the paper is to demonstrate how a research technique which was originally developed for operation in the UK has been successfully transposed into a number of other national environments.
This paper reviews Mini-Test Market experience in the field of consumer promotions testing and concludes that pre-evaluation of alternative promotions or indeed of any alternative marketing action needs a valid test method which in turn offers negligible risk.
At a time where Market Testing is criticized for its costs and mathematical modelling is developed, sometimes imprudently, one has not to forget about the potential of Physical Micro Modelling, as well as Physical Simulation. Reason why we have pushed a raid beyond the previous developments, in order to master promotional activities which were up to now quite empirical, even anarchical.