Introducing a new product or service to the market can be a daunting task, especially if you are unsure of the needs of your target audience. However, with the right planning and research, you can develop a successful product or service that meets the needs of your community. By identifying customer needs, researching the market, considering the cost, testing the market, and asking for feedback, you can select the perfect product or service to offer. In this article, we are discussing the essential steps that any business practitioner should follow while deciding on the type of goods or services to offer to the community.
1. Identify customer needs
Identifying the needs of your community is the first step to deciding which product or service to offer. Knowing the need of your customers will automatically facilitate you in Identifying your target market. Identifying your target market is an essential step in developing a successful business plan. You need to know who you are trying to serve, what their needs and wants are, and how you can best meet those needs.
Consider the demographics of your community and the types of products or services that the people in your community need or may benefit from. For example, if you are targeting a younger demographic, you may want to offer products or services that cater to their interests such as a subscription box service or a mobile app.
2. Research the market
Once you have identified the needs of your community, you need to research the market to see what kind of products or services are available. You may think you have a unique idea, but chances are someone else is already doing something similar. It’s important to know who your competitors are and how your product or service will differ from theirs.
Take a look at what your competitors are offering and determine how you can differentiate your offering. For example, if you are offering a subscription box service, consider what type of items you can include that your competitors may not be offering.
3. Consider the cost
When deciding on a product or service you wish to offer to the market, you need to consider the cost to produce or deliver the product or service. Factor in the costs of materials, labor, and overhead to determine whether or not the product or service will be profitable. Proper costing results in strategic pricing of your product or services. Thus, having a unique selling proposition (USP) should be the foundation for your entire business plan. For example, if you are considering producing a physical product, you need to factor in the cost of manufacturing, labor, and shipping.
In addition, when starting a new business, you need to consider what resources you have available to you. Consider your financial resources, human resources, and technological resources.
4. Test the market
Testing the market is an important step before launching a product or service. Conduct market research or run a pilot program to determine whether or not the product or service is worth investing in. For example, if you are considering launching a mobile app, you can create a prototype and run a focus group to gauge interest in the product.
5. Ask for feedback
Once you have a product or service ready for launch, ask for feedback from the community. Listen to the feedback you receive and make changes to your product or service if necessary. For example, if you are launching a subscription box service, ask your target audience what type of items they would like to see included in the boxes.
In conclusion, deciding on the product or service to offer involves a lot of research and planning. Identifying customer needs, researching the market, considering the cost, testing the market, and asking for feedback are all key steps in the process. By following these steps, you can develop a successful product or service that meets the needs of your community. With the right product or service, you can ensure that your business is successful and your customers are satisfied.