So, you have a great and innovative idea that you are sure people will absolutely love and would be willing to part with their hard earned money for. Well just having an idea isn’t usually enough. How well do you understand the logistics of your product? Who are these people who will buy your product? Where do they live? What are they like; their interests, hobbies, lifestyle, income, how often will your product offer value to them? How are you planning to attract their attention in the most effective way possible? Why is your product unique? By the end of this, you should have a better idea of how to answer these questions.
When performing an analysis for a business or product you go through many different checks to understand what your goals actually are. Many templates and processes exist with different purposes, whether it be to understand the marketplace or economic environment that you would like to introduce your product or service into, how your product will be utilized by the consumer, or how you will get your product in the hands of your consumers.
An STP analysis is an excellent first step in understanding the steps that need to be taken and where you are in the process of developing a product. STP stands for Segmentation, Targeting, and Positioning. Each of the sections are broken down into subsections that will help guide you to be able to understand who you will market towards, how you will do it, what exactly your product is, and how it will compare to products which already exist within your market.
Understanding the market segment that you will be focusing on for your product is imperative to knowing how you will market it. Who are these people? How old are they, where do they live, what is their education level, how many people are in their household? These are just a few questions to get started that you need to ask yourself. Where will your product be made available? What makes the people in this geographic area unique that will make your product have the greatest purpose and usability? Why would the people in your segment buy your product? What habits do they have, what are they asking for, what problems do they encounter that need to be solved? What are the market segment’s buying behaviors? Why do they make purchases – need, luxury, a mix? All these questions will help you understand the people you are selling to and how what challenges or benefits that might be presented when you introduce your product in this marketing and whether or not it’s a viable market.
At this point you know a lot of about your potential consumer, to dive in further, how will you use your product to target the market segment that you have defined? What niche market exists where your product would thrive? Who within your market segment would best benefit from your product? What strategy will you apply using the information about your market to penetrate it and make your product a solution for them? Having a viable strategy on how you will define your target market and focus in on the most willing and ready consumer is priceless.
So you REALLY understand your consumer now; you know who they are, their preferences, and what they appear to need. How are you going to position your product to them? What is your product and its unique value proposition (UVP)? What problem will it solve for your market? How will your product affect your consumer and add value to their lives? Along those lines, who is your competition? What do you offer that is different or better than your competition? What channels does your competition use to distribute and market their product? What can your product do that will offer more value than the current options available to the consumer? If there isn’t much competition in your space are your prepared for the innovation that tends to be driven by competition within the same space?
Finally, what conclusions can you draw from going through these questions that will help you improve upon your already amazing idea? What changes need to be made? How can your scope we redefined so that you have clearer objectives? How will you be affected from all business perspectives by the changes that could be made to improve upon your idea?
After going through all these questions and suggestions you should have a stronger grasp on your target market and how you will position your product.