That Means 50, 000 People Will Become Aware Of Your Product

Business.

Marketing strategies: are you making this marketing mistake? - in order to ensure that the new products and services they launch stand the best possible chance for success, corporate america employs a variety of marketing research techniques before investing time and resources in development. In this article, I' ll show you how you use powerful market research tools to save you time, frustration and maybe, money even ultimately your business.

A little basic smarts and network know - how will allow you to do the same thing for yourself. - so let' s get started. First of all, you' ll need to sit down and clearly delineate exactly what your product or service is, including what features and benefits it will offer and how much it will cost. Once you have a clear idea in mind for your new product or service, you' ll want to do what Corporate America commonly calls a concept test. Typically, you' ll write 2 - 3 paragraphs describing your idea, making sure to clearly explain the benefits to the consumer. Congratulations!

Really invest some time here and have other people read your description to make sure, A) your word choices are clear and, B) you' ve hit all the major highlights. - you now have a concept statement. A) Definitely will buy, B) Probably will, C) I might, D) Probably will not, E) Definitely will not buy. ) - Overall Likes and Dislikes. - Value. - Uniqueness. Next, develop a survey to gauge the reaction of your target market, covering the basics: - Purchase interest( i. e. , How likely are you to buy this product, if it were available to you? Make sure you include a range of possible responses for each question. Anywhere from 50 - 200 people will work. From here, you' ll need to determine exactly what the target market is for your new product or service - if your product is a new all - natural diet soda, your target market, for example might be health - conscious women, ages 20 - 4 Talk with friends, and friends, family - of - friends, as well as those of your employees.

Giving respondents an anonymous way to return your survey will help to ensure unbiased feedback. - as a small business owner, an action standard that makes sense would probably be how many people are likely to buy your product. When your surveys have been returned, decide what your minimum requirements will be in order to take the next step. (Do this even before you take a peek at your data. ) Large corporations call this an action standard. The rule of thumb some professional marketing research firms use to gauge true demand is that 80% of the people who answered that they would' definitely purchase' your product actually will - while only 20% of those who answered they' probably will purchase' will do the same. Now you have to take into account the role of advertising and exposure. Using this rule of thumb, let' s say your data shows true demand of 20% . Let' s say there are 10 million potential customers in your market, but you' re advertising on a shoestring.

Five percent? - with the budget you' ve got, how many people can you make aware of your product? That means 50, 000 people will become aware of your product. So - is 10, 000 buyers enough to make your new product viable? With 20% true demand, you might expect 10, 000 buyers. If not, it' s time to go back to the drawing board, using the feedback you received to strengthen your overall concept.

If so, it' s time to move confidently ahead - knowing the market is with you.