Inaccurate forecasts of product and service demands can hurt a business big time. In this blog, I will talk about 5 methods you can use to come up with correct predictions on market demands and base on that to produce the most appropriate supply for your customers.
Take A Look At The Past
The past can tell us a lot of what needs to be done next. Check the history of the industry your business your company is operating in to see if there’s any potential for a new product or service, or if there’s anyway your business can come up with something that is a huge improvement compare to what’s being offered at the moment.
Check For Substitute Products
Sometimes consumers will purchase a certain product because they are looking for something similar. If you can identify what exactly the customers are looking for based on the substitute products they are buying on the market, you’ve hit the jackpot.
Talk To Prospective Buyers and Intermediaries
What could be easier to find out what the consumers want than asking them directly?
Don’t overcomplicate things – just ask some of your prospective buyers to come down for an interview at your company (or ask them using a survey, whichever way is more comfortable for both your business and them).
Other than asking the end-users about what they want, you can ask intermediaries for information on what the people are buying or what’s hot in the store at the moment. Based on that information, you can define the trend of the current market, what’s missing, make predictions, and propose solutions.
Limited Production & Release
Already have a product prototype and want to get feedback from consumers? Issuing limited editions and releases is the solution for this situation. By releasing a limited amount of product batches into the market, you get the chance to find out what the consumers really think about the product. If the prototype is a hit, you can make that a permanent product or service of your company without having to launch it all over again. If it’s a miss, you can discontinued it right at that moment without having major financial setbacks.
A Test Market
It’s reasonable to test the waters first before you completely immerse yourself in it, and in business that’s what a test market is for.
A test market is run like a regular official launch, from advertising, pricing to packaging and distribution channels, but in only selected locations. The duration for a test market is usually somewhere between three to nine months. The results from this test market will be utilized to tweak anything that could become a problem in marketing, distribution, or product before the “real” nationwide official launch.
To end this post, I have to remind you again that forecasting market demand for new products and services is NOT an exact science, so even when you utilise these methods there are still chances that your new product or service will fail. Be careful with your judgment and take caution as always by having a contingency plan on hand.
Have anything to add to this blog? Share your opinions by leaving a comment in the comment section down below.
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