* Test marketing is a *specific type* of market testing. It involves launching a product or service in a limited geographic area to gauge consumer response before a full-scale national or international launch. It's a real-world test with actual consumers making purchasing decisions in a real market environment.
* Market testing, on the other hand, is a *broader term* encompassing various methods used to assess market viability before a major product or service launch. Test marketing falls under the umbrella of market testing, but market testing can also include:
* Simulated test markets: These use computer models and surveys to simulate real-world market conditions, offering a less expensive and faster alternative to actual test marketing.
* Focus groups: Smaller, controlled groups of consumers provide feedback on a product or service concept.
* Concept testing: Gauging consumer reaction to a product idea before even developing a prototype.
* A/B testing: Comparing different versions of marketing materials or product features to see which performs better.
In short: All test marketing is market testing, but not all market testing is test marketing. Test marketing is a hands-on, real-world approach, while market testing encompasses a wider array of methodologies, some of which are less expensive and resource-intensive.