product into a particular segment, or geographical region to see how well the program or product is received. According to Schultz, Martin, and Brown, there are three major reasons for test marketing. These reasons are (1) a trial of the campaign, (2) an opportunity to try variations, and (3) a way to reduce financial risk. By using a test market as a preliminary trial to a campaign, a company can attempt to gage, according to Kotler, a more reliable forecast of future sales. Also, by using the test market as an opportunity to try variations, an organization can better determine what campaigns will be most effective on a larger scale. Finally, as a means of reducing financial risk, test marketing enables the company to fix challenges that are inherent in a product or discover flaws in the marketing of the product long before they have spent potentially millions of dollars on a much larger segment. A case of effective test marketing is demonstrated by the National Cattlemen's Beef Association when they introduced lines of branded beef products that were already cooked or seasoned. The objective was to test a new line of beef products to grow a diminishing market. Michael Rose stated that fewer consumers are cooking from scratch, and the heat-and-serve beef products have filled an increasing amount of space in the grocery store. The initial test market took place in Portland, Oregon. Portland was selected because it fit many of the pre-selected criteria for the entry market. (1) Portland had little prepared beef products on the shelves of its many supermarkets (consequently, there is a tremendous amount of space taken on the shelves and refrigerated sections of Portland supermarkets now). (2) According to Rose, Portland area's demographics also fit the beef industry's target market of "convenience-oriented, focused people who work full-time outside of the home." (3) Many grocers emphasized prepared food and quick-serve produ...
