Figure 20.3 presents a simplified example of a rating sheet that might be used for comparing development ideas across such a screen of weighted factors. Even in these cases, though, there is a strong case for drawing on problem ‘cues’ from users and customers, trade channels, competitor intelligence and sales force feedback. Without such market direction there is a danger that development efforts lose their focus and become directed solely by the forces of ‘technology push’. Fourth, some companies wait and watch till the competitors develop new ideas by taking the initial risks. Once the product has succeeded, they enter the market with a similar product or a slightly modified version of the same product.
Many products enjoy specific advantages or carry locational advantages for example, if produced in the backward areas special concessions are made available for manufacturing such a product. Certain products are permitted for production only if the license is obtained from the appropriate authority while others belong to the de-licensed category. A product belonging to licensed category or de-licensed category is considered before selecting the product.
If you’re using your business plan as a document for financial purposes, explain why the added equity or debt money is going to make your business more profitable. You should also mention who you will sell to, how the product will be distributed, and the business’s support systems. Support may come in the form of advertising, promotions and customer service. Highlights the important financial points of the business including sales, profits, cash flows and return on investment.
The company has to decide about the exact target customers towards whom the product must be launched. The marketing strategy, the pricing strategy, the distribution network etc. have to be decided based on the target customers. The amount, duration and extent of test marketing depend on factors like the total investment, risk, the time available and the cost of test marketing. High investment /risk products require more of test marketing as even a small mistake at a later stage will cause a huge amount of loss. If a company is under great time pressure to launch the product, the duration of test marketing is reduced. If the cost of test marketing, in the form, of establishing a distribution network, advertising etc. is very high, a company has to proceed very cautiously.
Many companies use market research to test out new products or to get information from consumers about what kinds of products or services they need and don’t currently have. A business must engage in a variety of tasks to complete the market research process. It needs to gather information based on the market sector being examined. The business needs to analyze and interpret the resulting data to determine the presence of any patterns or relevant data points that it can use in the decision-making process. An outline of the sales strategy including pricing procedures, returns and adjustment rules, sales presentation methods, lead generation, customer service policies, salesperson compensation, and salesperson market responsibilities. For instance, if the distribution of your product is confined to a specific geographic area, then you want to further define the target market to reflect the number of users or sales of that product within that geographic segment.
Name the 3 key words used in the definition of marketing research by Green, Tull and Albaum. Marketing research findings and conclusions must be effectively communicated to management. A sensitivity towards the needs of the reader is of prime importance. The report should not be too technical and jargon avoided wherever possible, must exclude issues that are not material to the decisions that the managers wishes to be in a position to make and should be rich in interpretive conclusions. Once the sample has been described, the main findings are to be presented in such a way that all objectives of the study are achieved and the hypotheses are tested.
Orders are received and delivered, costs are recorded, sales personnel submit visit reports, invoices are sent out, returned goods are recorded and so. Much of this information is of potential use in marketing research but a surprising amount of it is actually used. Organisations frequently overlook this valuable resource by not beginning their search of secondary sources with an internal audit.
The market for the product also plays an important role in the selection of the product. If the product also has an export market, it enlarges the scope for marketing, hence such a product has its own advantage in the success of the enterprise. Many products belong to priority industries or small scale sector also. Certain products are listed by the government for purchasing exclusively from the what social media app has a ghost as its mascot small scale sector. As a result, if a particular product belongs to this category, the selection of such a product would be advantageous for the entrepreneur; therefore, these factors also must receive due consideration before the selection of a product. Many concessions are available from the Government, for manufacturing a product which serves as an import substitute or even essential item.