How do you create a product that is profitable? Have you ever thought why market research is done? It is true that businesses spend thousands of dollars towards marketing. If they don't do those kinds of stuff that makes them stay ahead of their competitors, then probably they'll lose business and be forced to close down.
For any business, market research should be the first process before product creation. Even the promoters of companies start from this approach, they carry out a market research to identify a profitable business idea (opportunity). There are three types of people in any market:
1.) Those who are buying now.
2.) Those who are selling.
3.) Those who are shopping (they have the intentions of buying later.)
You should approach the buyers and those people who are shopping, let them tell you what they want. Thereafter, fill these wants in form of products. In short, you'll have carried out a market research.
It will be guesswork when you first create the product not knowing what the market needs and wants. The point is when you create a product without finding out the demand for that product, you'll find it very difficult searching for willing buyers. Some businesses have failed because they didn't carry out market research before creating products. Once the products are ready to be sold, they start searching for buyers but I tell you that this is the wrong approach of product creation. Here are my two examples to clarify the importance of market research:
Example One: I know a lot about a specific subject and I think it's time to write an eBook that focuses on it. I spend weeks or a couple of months writing the eBook. When I'm through, I start creating a website. Now I need to find all the keywords. I come to find out during my research that there are over 50,000 websites on the subject of the book I have created. I spend days trying to create traffic but eventually I end up not attracting any significant targeted traffic to my website. Since my website lacks targeted traffic, no one is buying my book.
Example Two: I have several projects based on the topics I know very well and I could make all kinds of different eBooks. In order to come up with a profitable subject, I need to focus my thoughts and carry out market research. The goal is to find a topic that tons of people are interested in and they're willing to spend money so as they obtain the information regarding that topic. I also want to figure out how I can provide this material in a unique way using a website.
I first take my time in researching. I discovered that there are over 30,000 search engine searches on that topic each month (people who are searching for this topic using the search engine). There are 500 websites that I will have to compete with. The amount of people searching for this subject is much higher compared to the websites targeting this topic.
I go ahead and build my website. I go farther and I start using pay-per-click (Google AdWords ads) targeting keywords that are not too competitive. This allows me to focus on my product and also to target potential buyers. I use keywords that will optimize my website on the search engines. Later on I realize that my website is receiving targeted traffic from the search engines each day. Some people who are visiting my website are actually buying my book.
Do you see the differences? When products are geared for a specific market, you enjoy a much higher success rate. Trying to create a market for a specific product normally turns out bad, which is why it's important to stay away from this approach. First, find out what people need and want then create a product. Don't create a product first and then try selling it to people!
Relying on luck to create a successful business is unnecessary. You need to nurture your entrepreneurial spirit, click the link and find out more on how you'll nurture your entrepreneurial spirit. The author of this article is Joshua Nyamache and together with other team members they're working on Nikenya website.