When you understand the market, the products will sell themselves. What comes first, the market or the product?
This is not a new concept, it is really a chicken or egg question. As you know, by learning about the market first, you can completely change your business perspective, you can run your business for a long time or you can be defeated by the recession.
Too many business owners think about their business plans before they figure out what their customers want. In these times of economic downturn, we can see the difference between missing an opportunity and creating one.
How many requests for marketing direction come from business owners who have spent countless hours working on a perfect product or service without knowing the answers to three key questions:
- Who exactly will buy this product and why would they want to buy it?
- How much are customers willing to pay for this product?
- How do you convince your prospective customers to buy your product and not your competitors?
Identify your ideal customer
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Imagine starting from scratch. Forget about any preconceived notions about the product or service you are supposed to offer. In this economy, customers are always calling the shots.
So ask yourself: What do customers really need from your product? It could be anything from improved machinery to extended customer service. An ideal customer knows what she really needs, or at least knows it when she sees it, so tailor your product or service accordingly.
Product pricing
Let’s say you’ve spent the last year developing a product that satisfies a huge need with a well-established target market. You’re ready to launch your new product, but it’s priced higher than all the other products in its class. Admit that your product has some advantages over the other products in its class and that your future customers know they need this new, advanced product. What should you do?
A few years ago, you would have launched a bigger advertising campaign behind this cutting-edge product and captured the business opportunity from large customers willing to pay a significant price for these superior features.
But today, your smartest move may be to figure out how to introduce your superior product at a price comparable to your older products. Then, as the market accepts your new product, you can gradually raise the price, although it may not be three times higher than your competitors.
Finally, never enter a market unless you know you can produce and sell your own products and services that your potential customers are willing to pay for.
Reputation
This is where reality sets in. The reality is that the excellence of your product or service may not be enough to deliver when it hits the market. When money is hard to come by, people are more cautious about their purchases.
Part of getting your product or service to your most enthusiastic customers is analyzing the timing, energy, and money it takes to build the credibility that comes with convincing future customers to buy from you instead of your competitors.
This means developing and promoting a plan, a website with all the information, and online marketing, including PR and social media. Before and during the launch, you should be aggressive in your business to sustain sales of your products and services.
Marketing exists to support sales. You must identify a target market with a need and decide how to meet that need, an effective marketing campaign will convince potential customers to buy from you.
Source: Viet Wood Magazine
