When Determining the Market Potential of Your Product, It's Important to be Objective.
By James F. Riordan
Part Two
As I mentioned in the last issue, a winning product will be one that can be used by every man, woman and child in the country. But, of course, researching potential buyers and the size of the market is critical. You must have enough information to evaluate in order to accurately determine whether your product will be viable in the marketplace.
Following are some great research resources you can use in evaluating your own product:
1. Research Librarians--Almost every city library has a research librarian who will look up information for you at no charge on all sorts of subjects, demographics included. All you need to do is call "information," ask for the number of the nearest public library and ask for the research librarian.2. Companies Selling Lists/Mailing Labels--These companies compile directories of businesses listed in the yellow pages and publish directories on each type of business. For example, if your product will be sold in sporting goods stores, you can find out how many sporting goods stores are located in your state, which states have the most stores, which states have the least stores, and the total number of stores in the nation. Using the FREE directory you can immediately tell the overall size of your potential retail market and where you should spend the most money on advertising and promotion.
3. Magazines--These publications often give out "reader profiles" and demographics. Call the magazine, tell them you're interested in possibly placing some advertising in their publication and ask them if they would please send you some information/demographics on their readers.
4. Radio and Television Stations--These media outlets often have listener profiles available. Use the same approach as in #3 above.
5. Tabloids--Demographics for tabloids are often broken down by county or city and sorted by delivery zones. These publications can be especially helpful if you will be test marketing your product in local areas. Again, just call them and request the information.
6. Information Services--These companies do fast research and can dig up more than you ever wanted to know about anything in no time. Fees rage from $150 minimum up to about $600 for a full patent search. You can find these types of companies in your local yellow pages under "Data Searching" or "Research Companies."
Overestimating your potential market will hurt the credibility of your potential sales figures and calculations, so proceed with care. When you think you have the most accurate numbers available, discount them by 20 percent. You'll always be better off underestimating than overestimating.
For those of you who are planning on licensing or selling your patents and trademarks outright to a third party or a company, your potential market will be a much smaller one, but your market research will have to be more exacting. This is not an easy or quick process, and it will become frustrating if you attempt to shortcut it.
The patent office offers a service for those of you who wish to sell your invention outright or license it to another party or company. Once your patent issues, they will publish a notice that the invention is available for sale or license, in their Official Gazette, at a cost to you of only twenty-five dollars.
The above article was taken from James F. Riordan's classic book, HOW TO EVALUATE THE POTENTIAL FOR SUCCESS OF A NEW PRODUCT OR TECHNOLOGY. Riordan's highly-acclaimed, 36-point system is a valuable tool for inventors, product evaluators or anyone interested in the invention process. Each section is followed by a comprehensive questionnaire that can be used to evaluate your product.
The highly-recommended book can be ordered through the Dream Merchant, 2309 Torrance Blvd., Suite 104, Torrance, CA 90501. The phone number is (310) 328-1925.
|
|
Index |
 |
Idea Help |
|
 |
 |
 |
 |
 |