Means of testing a product and the marketing strategy in a miniature market situation. The object is often to see whether a given percentage of the market can be achieved. Not to be confused with product pre-testing. Test marketing the final insurance before going national.

Nevertheless, some 50% of products which enjoy successful test marketing fail to sell nationally. There are usually three stages: pre-test stage when market is nil, to establish base; actual test to measure initial and repeat sales; and post-test to consolidate results.