How to Evaluate the Viability of a New Product or Service in your Market
Market viability of a product or service: Failure of service or product creates a very negative effect on a company. To avoid this particular result, managers and decision makers carry out market research prior to the launch of the new service or product to find out if their particular offering will perhaps attract the target audience of consumers as planned.
Take a look at companies within the geographic region you intend to focus on to look for the degree of competition you may encounter, kinds of marketing initiatives that could be successful or fall short as well as demographics of consumers who bought a similar service or product. For instance, check out competitor shops and sites, assess marketing as well as sales efforts plus monitor their lead generation system and practices.
Create a listing of consumer demographics, like age group, number of family members, reputation and earnings, which you think target consumers for the kind of new offering have depending on your own competitor analysis and professional studies out of business journals. In case your budget makes it possible for, seek the services of market research company to provide consumer demographics information for regional, nationwide or global product sales associated with similar services or products.
Narrow your current target audience by asking for suggestions from focus group of individuals which have the consumer demographics you look at. As an example, purchase a list of specific leads from your marketing agency and after that deliver a new survey for the group which asks of their demographics, likes and dislikes and purchasing behavior, for example their particular reasons behind buying at specific stores as well as types of services or products these people like.
You can also invite individuals from the refined list to get a sample, some kind of prototype or maybe limited edition of your product. This will help you get their responses and suggestions regarding methods for you to make your offering significantly better. To illustrate, let individuals within your focus group to test your current offering for a limited time and after that request that they complete your questionnaire or take part in the focus group conversation as to what these people liked about your product.
Improve your plan based upon your homework as required then carry out more survey plus focus group analysis. Continue doing this approach until you really feel there is a service or product which could be successful with the target consumers.
List elements in addition to customer thoughts and opinions that may impact the success of your respective offering. This kind of elements consist of things like economic and political changes, online businesses or growing technological innovations. List alternative ways to bring in customers, increase product sales or broaden your current offering to new markets if possible.
Calculate the initial as well as continuous expenses with regard to building, release and marketing the product or service according to your investigation. Also consider cost estimations coming from all those associated with the project, like developers, producers, promoters, project supervisors and workers.
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