How to Determine Your Target Market for a New Product


Whilst it is a challenge on How to Determine Your Target Market for a New Product, the benefits can be worthwhile. Something new or even with a new twist or improvement to a product, can be considered altogether a new product. A snowmobile (called snowmachine in Alaska) could be an example: a vehicle able to travel on snow covered terrain.

From this example, we can determine that the creation of a product comes to fill a need and/or improve the quality of life.
The snowmobile, an engine powered sled, eliminated the need of dogs, with all the advantages.

The snowmobile example, tells us that for a product to be accepted, it must have benefits geared to a target market. Of course, larger the market, more the profits potential.

Still in the snowmobile example, the target market is obvious: people in rural or isolated places covered with snow for a good length of time. That the demand would be high, easy to tell, as the product is wanted and needed as it solves a problem.

But to determine your  target market for a new product, is not always so easy and apparent. Even if you are convinced that the product will serve a target market, you can’t rely on your opinion only. On the other hand, even others may discourage you. Ultimately, you have to weigh your findings and only you will make the decision.

One famous example to clear this concept. When Marconi approached Italian government officials, about his wireless telegraph, he found them uninterested and unimpressed. In their opinion, the invention was a curiosity, of no practical applications.
But in England they were more receptive and he patented his invention.

The way to go about is to think and put in writing a profile of the product with some considerations like:

-What is the purpose of it
-Who it’s intended for
– age, gender,location, ethnicity, income, education, lifestyle
-If it fills a need
– if it is unique
– ease of use or application
-market is large enough and profitable
– If it is affordable by most

Based on these subjects and more, you can identify your target market. A survey can help in this matter. Even
though you wouldn’t have access to a large group, you can introduce, tell, show (whatever applies) the new product to members of your family, friends and associates and have so some first impressions and opinions. Just from this, you may be able to have some ideas on how to proceed.

Also be aware of products that may be similar to yours. It’s good to analyze them so you can get an idea  on their target market, the pricing, the tactics in their marketing and whether you can compete.

To know How to Determine Your Target Market for a New Product start small and test the results. When things look good, then you can expand.

Gianfranco Focarelli, for experience aware of unrealistic promises, always looking to
identify the easiest and simplest method to successful internet marketing. Please visit
his blog at: http://targetmarketstrategy.com/ and find proven marketing strategies and tactics.

 

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