When creating a product or service you need to ask yourself the three questions of marketing. Doing this will allow you to grade how well your product or service will succeed.
Does a market exist?
When you are creating a product for selling or even a service, you want to make sure that there is a market for what you’re selling. Your target market is the ideal customer base that you perceive will purchase your product. If there isn’t a market for your product/service then you might want to rethink about the product/service you are provide.
To figure this out you want to start your market research. In 2017, market research accounted for 11% of a company’s total budget. Without market research you will not be able to properly sell your product and ultimately end up in the 80% of products that fail within a year or two.
What size is my market?
This is very important, if you have a small market base and your product is slightly expensive to produce, the possibility you fail to yield a return and ultimately fail is ever present.
As you grow & create your product, you will see how much it costs at all aspects. With this information you will be able to break down the numbers to see what you need to sell in a given day, week, month, etc.
Is the market concentrated?
Concentrated? What does this even mean? When you find out there is a market for your product, you will want to see if it is spread out or confined. Simply put: you could have a market base in the hundreds of thousands, but if they are spread across the country, will your shipping costs cause you to fail? If they aren’t, and concentrated to say the East coast where you can measure an exact number spent on shipping, you can have a much higher chance of succeeding solely based on the amount you’ll save.
Which brings up social media, it can be the best and worst thing at times. You are reaching out to millions of people but social media allows responses to be absent. Don’t be left looking for a needle in a haystack with social media.
-Written by Kathleen Sullivan