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To explore the appropriateness of statistical significance testing to measure the practical, managerial significance of outcomes in marketing programmes.

An in‐depth analysis of SST's scientific roots is coupled with delineation of a set of general objectives of marketing‐programme measurement to identify the applicability limits of significance testing.

In particular, it is shown that the relatively well known sample‐size dependence of SST and its somewhat lesser known replicability, representativeness and impact fallacies can severely affect the robustness of significance tests. Statistical significance is not the same concept as practical significance.

Comprehensive discussion of principles and practice leads to a set of prescriptive usage recommendations, directed at the goal of establishing much‐needed applicability rules and limits for the use of significance‐testing methodologies in an applied marketing context.

This robust challenge to the efficacy of significance testing in marketing practice should be of interest to any marketing planner concerned with the collection and use of marketing intelligence.

The stimulus to this research project was an article by Thornycroft in the Financial Times where he wrote: “The old test marketing idea is virtually dead: it was too expensive. Once companies had committed themselves to manufacturing a new product for a launch in a sizable TV region they were almost bound by cash and executive conceit to proceed with it to a national launch, whatever the auguries. Now the most common procedure is a more selective test either through extensive consumer sampling or the Research Bureau's mini‐van operation or a Westminster Press test campaign, or a simulated supermarket or one of the other testing services on offer.” At the time this appeared a contentious statement—reducing conventional test marketing to little more than a shibboleth. In the event, it served as a hypothesis to study while, at the same time, provided scope for an examination of the newer methods of testing a product in the market‐place before national launch.

The growing interest in food safety has led to food‐testing services becoming an issue of increasing importance. The demand for outsourced food‐testing services is growing. One of the results of these developments has been the internationalisation of such firms. This paper analyses the internationalisation of food‐testing services in the light of developments in the Nordic food‐testing market. The focus is on the external elements. These include development of the market to allow food‐testing firms to overcome problems and exploit opportunities arising from the fundamental changes in the nature of the market. The adopted internationalisation strategies of the Nordic food‐testing companies are studied. The key driver for internationalisation of firms is growth. Successful firms also need to maintain high levels of quality, speed of delivery, and competitive pricing.

The topic of “low‐cost product use testing for R&D guidance and early market evaluation” entails four different business concepts. It implies that the most successful path to total new product development incorporates testing that (1) is centered around human use evaluation, (2) is designed primarily to guide R&D scientists and engineers, (3) provides some early marketing strategy development for the brand manager before the product is fully developed, and (4) is inexpensive. That has been precisely the case at Gillette for the past 18 years.

In a number of recent multi-billion dollar cases brought against cigarette manufacturers, plaintiffs have in part alleged that the cigarette manufacturers (1) conspired not to compete on the basis of health claims or the introduction of potentially safer cigarettes since the 1950s, and (2) engaged in fraudulent advertising by making implied health claims in advertisements selling ‘low tar’/‘light’ cigarettes. In this type of litigation, defendants’ actions could be due to alleged illegal behaviour as asserted by plaintiffs, or be the result of market forces that may have nothing to do with allegedly inappropriate acts. We examine the economic evidence relating to these allegations, taking into account some of the major influences on cigarette company behaviour. In particular, our analyses show that much of the cigarette manufactures’ behaviour can be explained by Federal Trade Commission and related government actions, rather than conspiracy or fraudulent acts. We find the economic evidence is inconsistent with an effective conspiracy to suppress information on either smoking and health or the development and marketing of potentially safer cigarettes. Regarding ‘lower tar’ and ‘light’ cigarettes, the economic evidence indicates that the cigarette manufacturers responded to government and public health initiatives, and that disclosing more information on smoking compensation earlier than the cigarette companies did would not have had any significant impact on smoking behaviour.

Examines the potential of predictive models in the product testing stage of new product development. Draws on experience gained from a series of interviews with senior managers in the marketing departments of advertising and market research agencies and manufacturers of fast‐moving goods in the confectionery industry. Aims to give insight into the practical problems and acceptability of such models. Identifies alternatives to the models by examining problems in new product development. Reveals that no standard approaches are common in the confectionery industry especially and suggests that evidence militates against the use of models in the product testing stage of new product development.

This study surveys a broad spectrum of new product development (NPD) projects from the biochemistry industry in the USA, Canada, Germany, the UK, and Belgium with the purpose of exploring the role of the organizational activity factors in the NPD success.

Drawing on the resource‐based view of the firm, the authors present a set of hypotheses concerning the relationship between the people resources, development resources, testing resources, and launch resources committed to NPD projects and their financial success. In addition, the effect of the firm's international market involvement on the NPD project success is considered. In this study, testing of the hypothesized relationship is accomplished through linear probability model, binary probit model, and binary logit model.

Empirical results generally support the predictions from the theory. Specifically, the findings of this study show that: the involvement of a strong champion, use of a multi‐disciplinary team, and focus of a dedicated team are key factors for NPD project success among the people resources; the detailed market research has a significant impact on the project success in the development phase of the NPD process; the allocation of resources to the testing of the product with the final customer, market testing, and production start‐up positively influences the NPD project success; advertising quality plays a key role in the NPD project success during its launch; and the NPD project success is positively associated with the degree of a firm's diversification into international markets.

This study provides several guidelines for product managers seeking to launch new products. It offers critical insights into the identification of firm resources that influence the NPD project success. This study also has important implications for firms that consider diversifying or have already diversified into international markets. Understanding the role of market diversification in the NPD project success advances the ability of managers to direct their efforts in international market involvement.

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

States that the emergence of a formalised new product development can be attributed to the needs of companies in the capitalist system for maintaining a competitive advantage in their operating markets. Describes the process as one of innovation defined as:‘the technical, industrial and commercial steps that lead to the marketing of new manufactured products'. Belies the complexity of the function:’to describe new product development as difficult is probably a mammoth understatement'. Intends to illuminate the theory and practice of this process. Concludes that a flexible approach and an open mind are the most important requirements for successful application.