In this Article we look at the third competitive advantage of successful Internet Marketers – Creating Products.
The main problem with creating products is not in the build process, but rather in the “Ideas Process.”
Product Ideas Come From NEEDS
New Knowledge
Research at centres of learning gives rise to new theories that provide a wealth of ideas, for new products.
Emulation
Modification and copying of existing products and services is the most common source of new ideas for products.
Ego
Most inventors of products have big ego’s that are only satisfied by the “creative process,” from invention to production.
Difficulty
Hardship in terms of effort required to do any work or activity is a rich source of new ideas for products.
Scarcity
Shortages of necessities and luxuries very often give rise to new ways and products to overcome the shortages.
Product Development
Products can be developed in one of two ways :
Product Centric Approach
This is where the idea and the product are the drivers of the process. Prototypes and initial production runs are completed before research to find out whether or not the product has a chance of commercial success.
Market Centric Approach
In this approach the Market is the driver.
It focuses on identifying clear market needs and then finding very specific products to satisfy those needs.
With this approach you know your product will succeed before you commit money to the production process.
The Research
The two main purposes of research are :
Technical Viability
In this step you analyse the process and cost of manufacture.
The aim is to find an answer to the question – Can the product be made in commercial quantities for reasonable cost ?
Commercial Viability
This step determines the likelihood of commercial success when the product hits the shelves. You determine how much competitor products sell for and the expected return on investment.
A Practical Exercise In Creating Your Own Product
Step #1 – Developing NEEDS
Decide on which NEEDS you want to create a product for. For this exercise we will use Difficulty.
Step #2a – Idea Development Using a Market Centric Approach :
Using a directory of Internet Newsgroups join a few groups and lurk. Understand the group’s purpose and etiquette, and when you feel comfortable post a simple question. For instance :
Hi Forum
I am doing some research and would like to know what is the single biggest difficulty you have with x ?
Name
Depending on the level of activity on the group you should get back one or more ideas to work with.
This is market research in a basic form and can be made more sophisticated depending on how much time and money you want to throw at the research.
Step #2b – Idea Development Using a Product Centric Approach :
Think about your own or someone else’s daily activities in and out of work.
What single task is most difficult, repetitive, boring or uninteresting ?
Here are a few high level ideas :
* List Building
* Writing Weekly Articles
* Scheduling Daily Tasks
For each high level idea, narrow it down :
* Lists – Get more subscribers, retain subscribers etc.
* Articles – find fresh ideas, writing, find publishers etc.
* Scheduling – plan the day, timekeeping, allocating priorities etc.
Work each high level idea down to the lowest level of detail you can, and then use the Internet to find existing products that deal with your “low” level idea.
Study each product you find and score it for
* Strengths * Weaknesses * Availability (Placing) * Pricing * Marketing Strategy (Promotion)
Your aim is to find a product that you can improve on in THREE or more of these areas.
Step #3 – Technical Research
* Define the product’s form – digital, tangible, e-Book etc.
* Decide if you have the technical ability to build the product
* If you must sub contract the work – will you require patents or trademarks ?
* How will you protect your idea against theft ?
* How much will it cost per unit to build ?
* How long will each build take ?
* How will you store it and fulfill Orders ?
Step #4 – Commercial Research
Many Marketers forget or choose to ignore this step !
Unless your product costs next to nothing to produce or is meant to be a free give away, this step is critical before you commit cash to the build process.
Go to the Internet forums and newsgroups and post a question. For Instance :
Hi Forum
I have an idea to resolve difficulty x. Would this be of interest to you ? If so what specific features you like to see in the solution to x ?
Name
This step, performed in several different “Market Places,” will tell you :
* If your market is (still) “Hungry”
* Whether they really want to satisfy their “hunger”
* What they will pay to satisfy their “hunger”
Marketing – The Final Word
If your research indicates that the project should go ahead, your next step would be to create a marketing and sales plan.
As we saw in part 1 of this series, the big Internet players do not only rely on personal sales, they have huge Affiliate programs.
Affiliate sales should be a major plank in your marketing and sales strategy.
Conclusion
Creating your own product is not difficult. All you require is a methodical approach and a plan.
This article gives you both.
Relevant Resources
Find Markets for research purposes in newsgroups
Market Research Techniques and Resources
Set up an affiliate program – Simply Easier Marketing Part 1
Traffic and Op’t-In Lists – Simply Easier Marketing Part 2
For an e-book on creating specific Info products and a report on Market Research Before Building Your Products – send a blank mail to
simplyeasier_products@getresponse.com
Charles Kangethe of http://www.simplyeasier.com is a leading new wave marketer and a published author from England. The “Simply Easier” brand name is your guarantee of high value, quality Marketing Products, Services and Resources.
