What is Test Market?

Legal Definition
A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out. The criteria used to judge the acceptability of a test market region or group include:

  1. a population that is demographically similar to the proposed target market; and
  2. relative isolation from densely populated media markets so that advertising to the test audience can be efficient and economical.
-- Wikipedia
Legal Definition
Selected geographic areas to try a limited release of a new product or a plan for marketing.