The criteria used in selecting a new product for marketing falls under three categories – idea generation, market evaluation, and business choice.
The first part has to do with where entrepreneurs and investors hit upon the idea for their prospective business. Many new businesses were able to generate ideas for their business from daily newspapers and weekly magazines or journals, consulting firms, research institutes, and even in universities where knowledge is taught.
The second part details the viability and acceptability of a proposed product or idea in the light of current developments. The investor or entrepreneur should carefully analyze the new business opportunity and see how the launching of a product could emanate from the opportunities. A feasibility product study will reveal all an investor wants to know here.
After all is said and done, the entrepreneur makes a choice of what to do and where to do it and at what price. The new businessman bases his decision on the commercial viability, technical feasibility, and economic prospects of the product or service to sell well.
If the management happens to make a wrong business or product decision, it will impact negatively on the viability of the business or the marketability of the product. In fact, many products fail because –
- Initial research is not done or incomplete to determine the viability and profitability of a product
- Product changes in the market that affect consumers tastes and preferences
- Lack of proper judgement in determining what is most suitable for marketing at a particular point in time
- Consumers cannot readily see how the product meets their needs or cannot afford to buy it due to prohibitive costs
- Lack or insufficient promotions and advert campaigns to push the sales of the product
- Lack of consumer awareness of the product in the market
To increase the chances of a product’s performance in the market, the producer must sustain the production and utility value of the product and make it accessible to consumers who have been made aware of its usefulness. To this extent, the entrepreneur must endeavour to –
- Improve the quality and value of the product
- Enhance its general appeal and physical features for public acceptability
- Increase its benefits to add more value to customers who would buy it
- Do more to increase marketing campaign and advert awareness for the product
- Do more to improve the functional and aesthetic appeal of the product in all ways imaginable
If the producer would expend real efforts to do these, it is certain that consumers would soon give loyalty to his product over that of rivals in the market.