Marketing Strategies – The #1 Mistake in Small Business Marketing Part 2

Posted on April 16, 2009 - Filed Under Jane Thoughts, Success Tips for Jane

Ever wish you could test the waters for a new product or service before sinking a lot of time and energy into development? Well, here’s the good news: you can.

In Part 2 of this three-part article series, I’ll show you how you can use the Concept Statement you developed in Part 1 – along with a brief questionnaire – to conduct what market research professionals call a Concept Test. It’s a tool used by Fortune 500 Companies to help ensure success for their new products and services, and you can do it yourself at a fraction of the cost.

Are you ready?

WHAT TO ASK
Now that you have your Concept Statement, you’ll need to develop a survey to gauge the reaction of your target market. Your survey should consist of a brief introduction and your concept statement, followed by a handful of questions that are key in determining whether your product or service stands a chance. Those questions are:

?Purchase interest

  • How likely are you to buy this product, if it were available to you?

A) Definitely will buy,
B) Probably will,
C) I might,
D) Probably will not,
E) Definitely will not buy.

?Overall Likes and Dislikes

  • What do you particularly like about this idea?
  • What don’t you like or what could be improved about this idea?

?Value

  • How would you rate the value for the money for this product/service?

-Excellent
-Very Good
-Good
-Fair
-Poor
-Uniqueness

•How new and different is this idea?

Make sure you include a range of possible responses, such as those shown above, so it’s possible to develop a detailed picture of how your respondents feel.

WHO TO ASK
Next, you’ll need to find a group of people in your target market. If your product is a new all-natural diet soda, for example, your target market might be health-conscious women, ages 20-45. There are research companies specializing in finding groups of people with just the characteristics you’re looking for – but if you’re on a budget, I suggest you talk with friends, family, and friends-of-friends, as well as those of your employees. Chances are you’ll find a significant number of people in your target market.

Another great DIY technique for getting your survey in front of your target market is working with someone who has a business that serves that market. Ask them if they will send your survey to their customer base, perhaps in exchange for something you might be able to offer in return.

If possible, offer some type of incentive or ‘thank you gift’ for those willing to take the time to fill out your survey. An inexpensive way to do this might be to offer a drawing for an iPod mini or another item with widespread appeal.

One thing to watch out for when approaching market research on a DIY basis is bias. Your friends, relatives, and friends-of-friends are the network most obviously available to you, but they’re also the people most likely to hesitate in being brutally honest. Let them know that the best thing they can do for you is to tell the truth, and find a way for them to return the survey anonymously, if possible.

Finally, a word about “sample sizes,” or the number of surveys you want to see returned. Large corporations will typically interview 150-300 people of a particular target group when they are evaluating a concept. Clearly, the more people you interview, the more reliable your results will be, but surveying people can take a lot of time. The trick is to get as many people as you can, but know that beyond 200 or so, you’re going to see diminishing returns.

Now that you’ve got this important feedback on your new product or service, it’s time to put that information to work. In Part 3, I’ll walk you through exactly what to do with the results of your Concept Test, step-by-step.

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