South Bend ADI:

An Ideal Test Market

By Rita J. Runyon, President

TRC Consultants, Inc.

 

In order to stay alive in the consumer goods business during this decade, a company has to constantly develop and test new product ideas. Test Marketing is vital in determining how effective product/market plan development and consumer research have been. The product is put before the "public" in the Test Arena where the product will be "made", "delayed", or "slayed."

 

Because today's highly competitive market relies on maximizing a company's Return on Investment (ROI), test marketing has become an essential marketing tool. Test marketing will determine market share, who is buying, how often, for what purpose, where the purchases are being made and at what price.

 

The beauty of the "Test Market" is that it allows marketers the opportunity to test all the variables in a real marketing environment where real people are buying real products, in a smaller, less expensive experiment.

Market selection is an exact process: Medium-sized markets must be large enough to give a reliable reading, yet not so large that confidentiality is sacrificed. The markets' demographic profile should match the nation's in age levels, income levels and retail buying habits; the market should be isolated in terms of media and physical distribution, in order to maximize security.

A market is considered a "demographic match" if it does not deviate more than 5% from the US national average. The South Bend ADI (Area of Dominant Influence) has an average deviation from the US demographics of 4.22% and is considered to be ideal for product testing and market research. The South Bend ADI includes 10 counties: St. Joseph, Elkhart, LaGrange, Marshall, Starke, Pulaski, Fulton and Kosciusko - in Indiana; with Berrien and Cass, in Michigan.

Marketing Executives have lists of test market cities that they recommend for product testing. One of the most widely read lists is compiled by Dancer, Fitzgerald & Sample, Inc. of New York, NY. The agency lists the top eight markets that are closest to the average US national demographics. It's a sort of Middle America Honor Roll. Currently they include: Erie, PA, Ft. Wayne, IN, Grand Rapids, MI, South Bend, IN, Spokane, WA, Syracuse, NY, Albuquerque, NM and Lexington, KY.

OPINIONS DO MAKE A DIFFERENCE

Practically all of the products and services that you can name have been developed through product testing and market research. There are plastic containers instead of glass because consumers preferred them. There are child-proof closures on prescriptions and other products because research helped to define the most workable designs. The locations of stores, restaurants, hotels and malls are also determined by research. The list is endless.

It is risky to make a product and then market it. It is far wiser to ask the consumer for his or her opinion, produce the product and then market it. This three-step process is used to look into the future. For these reasons, the demand for market research and product testing is constantly growing and is becoming the cornerstone of economic expansion.

As one of the top Test Markets in the country, the South Bend Opinion has become extremely important to product manufacturers and service providers nationwide. Thousands of local residents' opinions have helped to influence what's available in today's market place; and we expect that South Bend will continue to play a vital role in the shaping of the country's economic future.