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Marketing Strategies - How to Make Your Product a Success BEFORE You Launch

by janebox

Ever wish you could test the waters for a new product or service
before sinking a lot of time and energy into development? Well,
here's the good news: you can.

Once you have a clear idea in mind for the product or service
you'd like to launch, you can conduct a do-it-yourself version of
what Corporate America commonly calls a concept test.  In this
kind of research, you'll get a clear idea of what your target
market thinks of your idea - what they're willing to pay for it -
and most importantly, why.

The do-it-yourself Concept Test will take a little time, but
will save you both time and money (and possibly even your
business!) down the line.

Are you ready?

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.  Typically,
you'll write 2-3 paragraphs describing your idea, making sure to
clearly explain the benefits to the consumer. This is your
concept statement.

Now that you have your concept statement, you need to develop a
survey to gauge the reaction of your target market. Your survey
should consist of a brief introduction and your concept
statement, followed by a handful of questions that are key in
determining whether your product or service stands a chance. 
Those questions are:

-	Purchase interest (How likely are you to buy this product, if
it were available to you? A) Definitely will buy, B) Probably
will, C) I might, D) Probably will not, E) Definitely will not
buy.)
-	Overall Likes and Dislikes (What do you particularly like
about this concept? What don't you like? What could be improved
about this idea?)
-	Value (How would you rate the value for the money for this
product/service?)
-	Uniqueness (How new and different is this concept?)

Make sure you include a range of possible responses, so it's
possible to develop a detailed picture of how your respondents
feel.

Now you'll need to find a group of people in your target market
- if your product is a new all-natural diet soda, for example,
your target market might be health-conscious women, ages 20-45. 
There are research companies that specialize in finding groups of
people with just the characteristics you're looking for, but if
you're on a budget, I suggest you talk with friends, family, and
friends-of-friends, as well as those of your employees. Chances
are you'll find a significant number of people in your target
market.

Another great DIY technique for getting your survey in front of
your target market is working with someone who has a business
that serves that market. Ask them if they will send your survey
to their customer base, perhaps in exchange for something you
might be able to offer in return.

If possible, offer some type of incentive or "thank you gift"
for those willing to take the time to fill out your survey. An
inexpensive way to do this might be to offer a drawing for an
iPod Nano or another item with widespread appeal.   
 
One thing to watch out for when approaching market research on a
DIY basis is bias.  Your friends, relatives, and
friends-of-friends are the network most obviously available to
you, but they're also the people most likely to hesitate in being
brutally honest. Let them know that the best thing they can do
for you is to tell the truth, and find a way to return the survey
anonymously, if possible.

Finally, a word about "sample sizes," or the number of surveys
you want to see returned.  Large corporations will typically
interview 150-300 people of a particular target group when they
are evaluating a concept.  Clearly, the more people you
interview, the more reliable your results will be, but surveying
people takes time. The trick is to get as many people as you can,
but know that beyond 200 or so, you're going to see diminishing
returns.

Now that you've got this important feedback on your new product
or service, it's time to put that information to work.

When your surveys have been returned, decide what your minimum
requirements will be in order for you to take the next step. 
Large corporations call this an "action standard."

As a small business owner, your most logical action standard has
to do with how many people are likely to buy your product.

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.

Using this rule of thumb, let's say your data shows true demand
of 20%. Now you have to take into account the role of advertising
and exposure.

Let's say there are 10 million potential customers in your
market, but you're advertising on a shoestring. With the budget
you've got, how many people can you make aware of your product? 
Five percent?  That means 50,000 people will become aware of your
product.  With 20% true demand, you might expect 10,000 buyers.

So - is 10,000 buyers enough to make your new product viable?

If not, it's time to go back to the drawing board, using the
feedback you received to strengthen your concept.

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

Michele DeKinder-Smith is the founder of Jane Out of the Box, an
online resource dedicated to the woman's entrepreneur community. 
Discover information, networking and marketing opportunities for
women small business owners by joining Jane Out of the Box for
free at <a href=http://www.janeoutofthebox.com>
http://www.JaneOutoftheBox.com</a>

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