Once you have identified the idea for your business, the next step will be carrying out effective market assessment to get relevant information that will tell you whether your idea is viable or simply provide with you the key data you need for your business plan. So read on in this article about five important aspects termed as ‘5Ps’ you need to use. In addition, it will enable you to compare your business with that of your competitors.
- Products: This refers to anything (good or service) that you want to put onto the market. However, the following principles must apply if you want to succeed in your business:
- First, develop a product or services that the customers want. Just know what are the basic attributes of the products/service you intend to produce? What is its originality? Why customers would like buying it instead of that of your competitor? Etc.
- Second, decide on the shape, color, package, brand name, quality and quantity wanted by your customers.
- Place: This relates to where and how you will make the product/service available to the consumers for purchase. So, you need to collect the information about for example the delivery of your products; whether it is direct or through middlemen, whether the location of your business allows customers to easily access the products. How about the transportation?
- Price: This means the exchange value of the product/service in monetary value. The price is a key pillar of your business as it must be able to attract buyers. So you need to find information about it before setting it. In principle it must be logical and reasonable. In other words what your customers can afford. Know also prices charged by your competitors.
- Promotion: This refers to making communication and it involves all activities that influence the consumer to buy the products/services. It involves advertisements in newspapers, posters, radios or TV or any another attractive arrangements to attract attention about the product. Ask yourself how my customers learn about my products?
- Positioning: This is related to the place of products in the rest of the market or shop. it tells who the target customer is. And who are the customers who buy the product final consumers, wholesalers, big companies, etc.? Or what is the income category of customer low, medium or high income level?
To sum up our discussion, I argue that carrying out the market assessment on these 5Ps will prevent you from relying on feelings but on facts and reality, which will sustain your business in the changing and full of competition world.