Art of Marketing!
Chapter 03. 3 key questions for marketing
For a business not to advertise is like winking at a girl in the dark.
You know what you are doing but no one else does. — Stuartt H. Britt
There are 3 key questions related to marketing,
especially about a new product or idea.
Normally, if the sales of a product are not satisfactory for any reason,
you can use these three questions.
Most companies ask the first question,
but the number of companies
I consult with have never asked the other question is sure to amaze you.
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Does a market exist?
The first question is: “Is there a market?”
Are the people out there really going to want to buy the product
or service you’re thinking of bringing to market?
Remember that the basic success/failure ratio
for a new product is 20/80.
Or 80% of new products will fail.
They will not gain significant market share
and the company will lose money
and possibly even go bankrupt at any time.
20% of new products will be successful
enough to cover the investment costs and make a profit.
1% out of 20% of this product or service
will be a breakthrough success.
For every 100 new products launched in a year,
only 1 becomes a bestseller.
Say no to the good so you can say yes to the best. – Zig Ziglar
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Market research
In 2012, American companies spent more than $8 billion on market research.
The main reason for doing this is to find out
if there is a market for the new product or service,
who and what constitutes that market,
the products or services that will need to feature something
to sell at a price that makes a profit.
And even after market research,
80% of new products and services fail within the first year or two.
Today, a better strategy is “customer first”.
Whenever there is a new product or service,
immediately call a customer directly
(no surveys, no questionnaires or group surveys)
and tell them you have an idea for a new product or service;
new product or service.
Will they buy it?
How much will they pay?
What gaps and weaknesses does that customer see in your idea
for a new product or service?
By doing market testing early and by asking your customers
for their candid opinions,
you can drastically speed up the “go to market” stage
and reduce costs at the same time yours
for new product development.
We have to set some big goals to force ourselves
to push beyond the threshold
and take advantage of the inherent power within us. – Zig Ziglar
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Market size?
The second question you need to ask is whether the market
or your products and services is large enough.
Amazingly, this is a question that people neither ask nor answer.
However, you need to know:
Can you sell enough products or services to make a substantial profit?
In your initial analysis,
you determine exactly
how much it costs to produce a product or service
and how much it costs to sell so that it can be profitable,
in a variety of ways,
for the same amount of money.
You then determine the number of units of the product
that will have to be sold in a week,
a month,
and a year,
so that it is commensurate with your investment of time and effort.
Finally,
you determine if a sufficient number of potential customers
will purchase your products and services
within the specified time period.
Direction creates time and motivation creates energy. – Zig Ziglar
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Is the market concentrated?
The third question is:
“Is the market concentrated enough?”
Just because people in different places say
they will buy your product or service doesn’t mean
that the market is concentrated enough
for you to reach with the available advertising methods
and sales channels.
You may find that there is a market that needs 100,000 units
of a new product or service,
but it is spread across North America in 10,000 cities,
towns,
and villages.
So how can you approach that market in the most cost-effective way?
Remember, you’re looking to “buy” customers.
Once you have a product that people will buy,
the cost of acquiring the customer will be a key factor
in determining your success or failure.
A product or service that has a large market
but is unlikely to be viable for you simply
because you can’t drive it to
that market through social media
or through existing marketing channels.
Today, you can access a wide range
of specialized markets in narrow niches
by the Internet at much lower prices than before.
People used to say that the Internet is a double-edged sword.
It can be both the best marketing tool and the worst one.
Because most people you reach will not be interested
and may delete your message as soon as it is received.
The best is because you can reach hundreds of thousands
or even millions of potential customers for a very low price.
What makes the difference is not our ability but our thinking and direction. – Zig Ziglar
