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The ability to successfully sell an idea depends a great deal on the target customer and distribution channel you’ve chosen. The characteristics you need to evaluate are how easy they are to reach and how profitable they will be.
Customers are easy to reach when you can locate them for a minimal expense. For example, motorcycle riders are easy to reach because you can: buy motorcycle vehicle registration mailing lists; there are several widely read motorcycle magazines; and motorcycle riders have large annual summer gatherings. High-income gourmet cooks are easy to target because of the magazines they read, and because many high end department stores and specialty shops have gourmet food departments.
Some target customers are more difficult to reach. If I sell wall murals to people redecorating their homes, how do I easily reach a large number of people interested in redecorating? Products need to be especially strong to reach this target customer effectively.
Customers are easy to reach when they are:
1) Well establish dealer networks people buy from, such as lawn and garden dealers, or dental device dealers;
2) Specialized magazines for your target customer;
3) Easy to find mailing lists;
4) A large network of clubs and associations;
5) Well attended industry trade shows.
You also want a target customer group that will produce profitable sales for you. Otherwise you won’t succeed no matter how many sales you make. Several characteristics make customers profitable.
1. The purchase is important. In a large house people might need to be well organized, but in a small house or apartment, organization is everything. That’s why closet organizers are geared towards younger people. The reason for importance varies, but what is important is that people will go out of the way to buy something important to them.
2. Features dominate the purchase decision. People will pay more for a product when they buy based upon the features a product does or doesn’t have. Also be sure to consider visual appeal a feature of the product, If people are concerned about the look, or image, of a product that would be a feature oriented purchase decision.
3. The product meets a specialized need. A product that allows an electrician to send wire across a hot crowded attic is meeting a specialized need. People will pay a high price for a product that solves a pressing or annoying problem.
4. The customers don’t have many choices. If you sell a silverware holder for a drawer in the kitchen customers have plenty of choices both of products and places to buy products. It is hard for an individual inventor with just one product to make money on products where customers have lots of choices. Target customers won’t have much choice if sell a special dry grooming shampoo for dog owners to use at dog shows. Inventors have a much better chance with products where customers’ choices are limited.
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