Bringing a Product to Market

     Inventing your product is just the first of many steps towards placing it in the hands of the consumer – your customer. Before you even think about becoming a fully operational business, you must realize that the success of your venture is directly related to the amount of information you gather and how it’s managed. Thus, background research and a well thought out marketing plan are the keys to minimizing the risks and maximizing your potential when opening the doors to any business.

     However, before embarking on a research project you need to determine what it is that you hope to learn from the research. First, by understanding the need for the product or service, you can define the target market: the consumers that are most likely to purchase your product or service. This information would include a detailed profile of the target market including age, gender, geographic location, education and income status. These are very important elements to consider.

     Secondary research, or existing published data, should be the first step in a market research project to gain information about the target market. Some form of primary research will also be necessary. To conduct primary research, a questionnaire should be administered by telephone, in person, or by mail to get your defined target market.

     Once you have acquired sufficient background information, the marketing plan is the next step necessary to begin your venture. The marketing plan describes how sales will be attained by describing what is to be done, how it will be done, when it will be done and who will do it. More specifically, the marketing plan outlines what most marketing experts refer as the “four ’P‘s” – product, price, place and promotion.

     PRODUCT – Since you are an inventor, this part of the marketing plan should be simple. On the other hand, if you don’t already have a product in mind to market, then you should go to your local library and search through magazines that cover topics which would interest you.

     PRICE – You must set a price that will enable you to get the product or service accepted by the consumer; maintain and increase your share in the face of competition, and produce profits. An effective pricing strategy is to list the retail price your competitors are charging. At this point you must decide if you will have higher prices in hopes that even though a reduction in sales volumes may occur, a higher gross profit may result, or to maintain lower prices in an attempt to undercut the competition and gain market share.

     PLACE – Place can be defined as the location of comparative advantage or how you will eventually get the product to your consumers. In other words, your business should be strategically located. For example, if you had a copy shop and college students were the target market, then you would want to have your shop located on or near a college campus. Still, place takes into account the methods and channels of distribution you will employ (i.e. if you had a mail order business, the place will take into account what carrier you will use for delivering your products to customers).

     PROMOTION – The promotional strategy describes approaches that the company will use to bring its products or services to the attention of prospective purchasers. For original equipment manufactures and manufactures of industrial products, indicate the plans for trade show participation, trade magazines advertisements, direct mailing and promotional literature. For consumer products, you should specify what kind of advertisement and promotional campaign is contemplated to introduce the product and what kind of sales aids will be provided to dealers, what trade shows and advertising vehicles such as on-line, print, television, radio, direct mail and tele-marketing are to be employed, etc.

     In conclusion, background research and a marketing plan will undoubtedly be the foundation to a small business. Overall, the marketing plan is your blue-print for success; could you imagine a contractor building a home without a blue-print from an architect? If you thoroughly plan, you can actually take whatever resources are available to you, even if they seem meager, and directly impact the rate of return on your investment (ROI) so that you can earn a profit consistently.