How far can you take it if you want to test the market potential for a new product, an idea that could set your startup business apart from the rest.
Firstly, it takes plenty of thought to define the best method of marketing. Marketing often gets confused between selling, discovering prospects, and finding the right approach to delivering your proposal. But it also covers the market scope, the definition of your package, and how far you can go with supply and demand.
The law of supply and demand combines two fundamental economic principles that describe how changes in the price of a resource, commodity, or product affect its supply and demand. Supply rises while demand declines as the price increases. Supply constricts while demand grows as the price drops.
Consumable products like soap, shampoo, or toothpaste don’t change in that people use them on a regular basis. People need them and therefore they have to buy them. These are products that fit into the average person’s budget for popular brands while the highest quality products may demand higher prices. Demand for basic necessities is relatively inelastic. The market is less responsive to changes in their price because they are have to have.
Buying a new car perhaps means that a GWM Haval costing over $38,000.00 in Brazil is outside your budget, and that coming down to reality and purchasing within your price range is safer. Yes, there are those who stretch beyond their means, and could get behind on payments. Sticking within your price range, or going fractionally over is probably harmless.
Buyers have finite resources so their spending on a given product or commodity is limited as well. Higher prices reduce the quantity demanded as a result. Demand rises as the product becomes more affordable.
As a business leader marketing defines your existence. Without market share sales are not plentiful and so efforts need to be directed at increasing sales.
Companies create products to meet market needs and provide value to customers. Products can be consumed by individuals or businesses.
Why create products?
Meet market needs: Products can help businesses adapt to market needs and stay competitive
Build trust: Quality products can help businesses build trust with customers
Grow and innovate: New products can help businesses reduce the risk of failure and grow
Market effectively: New products can lead to effective marketing strategies
How to find product ideas?
Consider what you already have
Look for trends in your community
Check online consumer trend publications
Get inspired by industry leaders
Use product trend discovery sites
Browse online marketplaces
How to research products?
Analyze market demand
Identify trends
Analyze target demographics
Study similar products
Evaluate market saturation
Find opportunities to differentiate
Conduct surveys and focus groups
Gather feedback
Understand customer needs
All in all, there are ample options to continue developing your idea, product range, or marketing concept. It is down to the individual with collective effort to find more and better ways to gauge client demand and supply for your service or product.
All the best!
Prof. Carl Boniface
Vocabulary builder:
"On a regular basis" is an idiom that means something happens in a uniform manner or at regular intervals. For example, you might go jogging on a regular basis.
Inelastic (adj) = inflexible, rigid, unbendable, stiff, unyielding, hard, brittle, unflexible, (ant) stretchy
Have to have (idiom) = must have. So “I have to have (something)” means “I need to possess (something)” right now; “I had to have (something)” means “I needed to possess (whatever it was we're talking about).
Ample (adj) = is another word for sufficient, plentiful, abundant, generous, more than enough, (ant) insufficient
Gauge (n) = estimate, assessment, measure, scale, device, instrument
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