Imagine that you find yourself in any of the following situations:
1. You are currently working for someone else, and you have an idea for a new product or service.
2. You own a small business and you have been successful with your first product or service. Now you have an idea for a new product.
3. You work for a large corporation, and the product that you manage has started to lose sales even though the market appears to be growing.
In situation #1, the question you are asking yourself is, "Should I quit my job and start a new business to sell this product?" The sub-question is "Will this idea work?" If the idea is going to work, and you can make a significant profit by starting the business and selling the product, then starting the new business is something you should consider. If not, then starting a new business is the wrong decision. To start your new business, you will need to quit your job, get a second mortgage on the house, work incredibly hard getting everything going and so on. If the idea does not work after doing all of that, it will be a major disappointment and a big financial loss.
In situation #2, the scenario is similar. Your small business is up and running and making a profit. Should you risk that profit on a new product? Is it worth it to invest the profit in this new product, or should you put the profit in the bank and wait for a better idea?
In situation #3, you have a mystery. A product that has been working is now losing sales for some reason. Your job is to find out why so that you can correct the problem.
Somehow you need to reach out to potential customers and/or current customers and find out what they are thinking. You need to ask questions and get some concrete answers. Do people need the product or service you are offering? If so, how many people need it? Which features are important to these people and which are not? What price would customers be willing to pay, and why?
The process that you use to get answers to questions like these is called market research. There are two ways to look at the process: From a business standpoint, market research is a way to get answers to important questions before investing a lot of time and money creating a new product or service.
What we conclude from our research that there’s no single organization free from facing complications and difficulties. Each and every organization face few or many strategic problems. Johnson & Johnson had a problem with one of their products, and they were smart in handling that problem to keep the company on the safe side without letting it effect it negatively. It is very important to act quickly to fix the problem before many consumers notice.
Open to new ideas: Owner is open to generating new ideas to bring in new clientele for business, such a...
Disney resorts currently exist in numerous locations across the world. In an effort to expand to South America, Disney must determine how potential customers, as well as locals to the Rio de Janeiro locale would feel about the new resort. Disney must utilize marketing research to make this determination, and the following discusses the four types of research methods Disney might use. Determining the research tools is an important step for the company because they are the ones that will be used to collect and analyze the data to determine the needs of the market. The objective is to examine the applicability of four different research tools such as surveys, questionnaires, focus groups and in depth interviews. The analysis will allow Disney to determine the most applicable research tool to obtain data used to make important decisions. There is also a compare and contrast section discussing pros and cons of each tool, as well as an analysis of which tool would be most effective to Disney. Finally, there is a definition of secondary market research as well as a description of how Disney will use secondary market research to determine how the resort would fair in such a location.
In conclusion, innovation and the need for it will never diminish no matter how big or small. For me, my company, and my country innovation is the key to our success and our very existence. With that being said, you better not have a great idea and have no one to sell it to. The customer will always be first, second, and third for that matter, if we are to succeed.
Next customer research panels can be beneficial. These panels consists of several individuals who ha...
Choose a product and niche with a small but sufficient market size. Avoid niches that are too small with low keyword searches. For example, a product that caters to pregnant females between 25-40 years old is probably good. But a product that caters to pregnant females between 25-40 years old who like punk rock music will likely be too narrow. It will be harder to find customers, more expensive to acquire them and the small market size will limit your potential growth substantially.
... you. If the consumers are not interested in our product, the sales decline. And since we do not own a store, it is difficult to sell. Consumers have no convenient collection point.
It involves totally a new area of business. There is no relation between the new product and the existing
The company should expand into new markets. For example, during the low seasons, he can expand into new locations, countries with its current product, and service offerings
A few years ago, a friend approached me about partnering with her in the purchase of a day spa. I had always wanted the freedom and satisfaction that comes with being my own boss. After deciding to move forward with my partner and buy a day spa, I learned to put together a business plan, personnel criteria, and marketing plan.
During this stage, the product or the innovation becomes accepted in the market, and as a result sales and revenues start to increase. Profits begin to be generated, though the break-even point is likely to remain un breached for a significant time–even until the next stage, depending on the cost and revenue structures
In the beginning lectures, I had no idea that brainstorming and conceptualizing an idea was part of an elaborate process to generate good product ideas. Great inspiration and a creative idea require deep thinking. I have learned that opportunity identification involves looking into the problems first rather than diving headfirst into the solution. Identifying and analyzing customer’s needs, market size, sustainability and scalability allows easy identification of low and high potential concepts. As stated in the article by Tim Brown (Brown, 2008), human-centric approach of innovation should be part of the design process as it gives insights into the life of an everyday person.
To solve the problem of declining sales, three basic questions must first be answered. Yarborough defined these as “knowing where you are, where you are going and how you are going to get there” (Yarborough, 1994, p. 13). The appropriate process to solve a problem must define the current state of the issue, find the core cause(s) of the problem and chart a viable course for correction. Additionally, proper instructions and action steps of how the solution will achieved must be part of the process.
Creative ideas and innovative approaches can come from almost anywhere- from your partners, customers, target groups, employees. They can bring you fresh perspectives and ideas, so show them that you’re listening and open to their feedback. That's why it is important an open exchange of ideas to be supported and encouraged by the company.