Appraising Market Potential and Planning for a Product
1. Performance of the product. What will it do? With what result? What particular features, advantages does it have? Appraising Market Potential and Planning for a Product should be done every six months in todays business environment.
2. Uses. In what situations can it be used? Applications? What problems will it solve? In other words, how can this performance be utilized?
3. Users. Who has those situations and problems? What kinds of firms, products (and who are their users)? Are they our present customers? Many or few users?
4. Buying motives. What is user buying? Low cost? Employee safety? Fast production? Dependability? Flexibility? Convenience? Personal self-expression?
5. History. Has a product like this been attempted? If any failures, what were the reasons for them? Do those reasons still exist?
6. Buying habits. How often would users buy this product? In what quantities would they buy? Is it a seasonal item?
7. Price. Can we make it and sell it at a profit? Are material costs reasonable, competitive, in quantities necessary? Can we afford the marketing costs?
8. Location. Where are the people who could use the product? Are they concentrated or scattered?
9. Numbers. How many possible users are there? How are they sorted by types of users?
10. Channels. How do we get the product to these people? Are our present channels adequate? How about discount schedule for any middleman? Can it be attractive?
11. Sales facilities. Can our present salesmen sell this item? Is our present sales organization suitable? Would special training be necessary for our salesmen? Dealers?
12. Advertising. Can it be advertised along with our present lines? How much “education” would be necessary? (Consumer acceptance of the idea as well as the product.)
13. Packaging, transportation. Is there any packaging and shipping problem, in terms of breakage, spoilage, storage, freight rates?
14. Outlets. Would our present dealers accept it? Could their salesmen sell it? How much missionary work necessary? Exclusive dealerships? Any credit problems?
15. Service. Will service facilities be required? What channels of handling such service are necessary? Can our outlets handle such service?
16. Competition. What quality, performance, price shall we produce? What similar products are now on the market? How are they selling? What new items, substitutes are on the way? How about patents, other legal restrictions?
17. Long-run considerations. Will this be an item with a long future vs. hit-and-run? Will it give us prestige and good will? Could we add related items to advantage?