Did you know that numerous new ideas and products have proven to be a great success because their creators and innovators identified an unmet requirement in the marketplace and substantiated the feasibility of that particular concept?
The more you test your product or service before you actually produce and sell it, the more likely you are to earn the sales and the profits that you have your eye on. It is important to bear in mind that for every rand that you spend in the market testing your service or your product can and will save you a small fortune in losses at a later stage.
Market research will uncover the following crucial information when launching a new product or new business:
- It is imperative to know exactly who your competition is.
- You need to know exactly how much your customers are willing to pay for your product so that you can establish a competitive and realistic price which will turn into accurate profits.
- Governmental guidelines your company needs to abide by.
- Demand for a product or service.
- Sales figures within a market for a certain service or a certain product.
- Who your patrons are.
- What your customers think of your product or your service and that of your competitors so that you can capitalise on your fundamental strong points.
- Where and how your clients and customers will be buying your services or products so that you will be in a strong position to establish effective distribution and marketing channels.
The only real test of a product or a service is the market test. This is when you will take your new concept to a customer where he or she will invest or buy your wares or services. Once you have been able to establish what price you will have to charge to make a good profit, it would be time to begin thinking out of the box where you can find ways to improve on the product as well as your marketing concepts.
It is interesting to note that 65% of South African youths surveyed in “The Young Upstarts” Report by The Branson Centre of Entrepreneurship said that they are keen to start their own companies, and 19% have a business idea but have done nothing with it as yet.