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Basic Marketing Research 7th Edition by Gilbert Churchill,Tom Brown,Tracy Suter
Edition 7ISBN: 978-1439041390Basic Marketing Research 7th Edition by Gilbert Churchill,Tom Brown,Tracy Suter
Edition 7ISBN: 978-1439041390 Exercise 13
The product development team at Busby's Briquets has been working on several modifications of Busby's highly successful line of charcoal briquet. The most promising development is a new briquet that provides a unique smoky flavor to grilled meat. Management, based on favorable feedback from a few „employees who have tested the product in their homes, feels that the new briquet has the potential to become a major seller.
At a recent strategy session, the vice president of marketing suggested a test-marketing program before committing to introduction of the new briquet. He pointed out that a test market would be a good way to evaluate the effectiveness of two alternative advertising and promotional campaigns that have been proposed by Busby's ad agency. He feels that effectiveness should be evaluated in terms of the trial- and repeat-purchasing behavior engendered by each program. He also wants to gauge Busby's current distributors' acceptance of the new product.
The CEO of Busby's, however, is not very enthusiastic about the idea of test marketing. She pointed out several of her concerns, among them the fact that Busby's competitors could easily duplicate the new briquet, the fact that the company is nearing the limit of budgeted costs for developing the new briquet, and the fact that the seasonal nature of briquet sales makes it imperative to reach a "go-no go" decision on the new briquet by mid-December, only four months away.
The director of marketing research stated that she felt a test market could be devised that would satisfy both the vice president of marketing and the CEO. She was instructed to submit a preliminary proposal at the next strategy session.
a. What information should be obtained from the test market in order to satisfy the vice president of marketing
b. Under what constraints must the test-marketing plan operate in order to satisfy the CEO
c. Given your answers to (a) and (b), what method of test marketing should the director recommend Why
At a recent strategy session, the vice president of marketing suggested a test-marketing program before committing to introduction of the new briquet. He pointed out that a test market would be a good way to evaluate the effectiveness of two alternative advertising and promotional campaigns that have been proposed by Busby's ad agency. He feels that effectiveness should be evaluated in terms of the trial- and repeat-purchasing behavior engendered by each program. He also wants to gauge Busby's current distributors' acceptance of the new product.
The CEO of Busby's, however, is not very enthusiastic about the idea of test marketing. She pointed out several of her concerns, among them the fact that Busby's competitors could easily duplicate the new briquet, the fact that the company is nearing the limit of budgeted costs for developing the new briquet, and the fact that the seasonal nature of briquet sales makes it imperative to reach a "go-no go" decision on the new briquet by mid-December, only four months away.
The director of marketing research stated that she felt a test market could be devised that would satisfy both the vice president of marketing and the CEO. She was instructed to submit a preliminary proposal at the next strategy session.
a. What information should be obtained from the test market in order to satisfy the vice president of marketing
b. Under what constraints must the test-marketing plan operate in order to satisfy the CEO
c. Given your answers to (a) and (b), what method of test marketing should the director recommend Why
Explanation
Verified
Verified
a.
In order to satisfy the requirements...
Basic Marketing Research 7th Edition by Gilbert Churchill,Tom Brown,Tracy Suter
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