Before you take a new product or service to market, it is important for you to determine the market and sales potential of the new invention product or idea. This is the highest expected revenue that can be achieved from the product or service during any given period. Determining the market potential and possibility for sales allows you to determine the profitability of the product or service and give you some direction when taking it to market or make changes along the way.
Although the calculations that are used for determining sales and market potential are rather straightforward, there are variations that are necessary to consider. There are also several online calculators that are available, as well as mobile applications, which can be used to determine this number. Here are the individual factors which are considering in determining this number.
It is necessary to consider the population size as an overall number. This is the general population in any given area where the product is going to be offered. As an example, if you plan on offering your product throughout the United States, you can use the US population as this figure. If, on the other hand, it is an Internet product that is offered to US citizens, you should only consider the number of individuals in the United States who use the Internet. Also, it is important to define the different geo-target market because different countries speaks different languages and you might want to consider translating your new product into different languages.
Obviously, not everybody is going to be interested in your product so you need to determine the percentage of users with interest in the general population. This can be a difficult number to achieve, depending upon the demographics of your product or service. When developing a new product idea, it’s important to determine your potential markets. For example, is the product suitable for all ages or different genders. If the product can be used for all ages and genders, your product has the potential to become popular.
You should consider the awareness of your product or service after one year. This is a number that can be adjusted, depending upon how you are promoting it. If it is a relatively popular product that is going to be used among the general population, the awareness can also grow quickly. Also, it’s important to think about the marketing strategy on how to introduce your new product to the public. Building awareness takes time and effort for people to know your product.
There are also other factors that should be considered, depending upon the product that is being offered. These may include the duration of the opportunity, the potential for growth and any risks or rewards that are associated with the product. Determining the market and sales potential in advance of taking the product to market can help to save you time and money. It is something that should be considered for any new idea.
About the author:
Patrick Dawson is an expert in patenting and developing new invention ideas. Feel free to connect with him on Google+.