Providing some keys to understand our niche market and tools to know who our competitors are (and how to address them).
First we have an idea. Then we tell someone who later may potentially be our business partner. Once the product is selected and the niche market is stated, time for analyzing is next.
When we decide to carry out a strategy to sell a new product, it’s important to perform certain preliminary steps to analyze the market demand online. To do this, we will use certain tools that will help us get an idea of the sector in which we will go into and to also see who our competitors are.
Without evaluating our product idea (it’s strengths and weaknesses) and the market that surrounds it, we would leave our chances of success to be random.
In relation to our product:
We must be clear about some issues of product we will provide. You need to evaluate the following to prevent making the maximum possible errors:
- What are your physical characters (size, weight…)?
- What profit margin do we wish to obtain?
- What degree of market stability does it have (seasonal, scaleable, perishable, lasting in time…)?
- What’s the pricing and what will determine it?
- Can we deliver a product subscription?
- Do you have any restrictions (legislation, etc.)?
To learn how we are dealing with competitors, we have different tools available which will help us understand the market:
- – Google Trends: This is the starting point for determining the trajectory of demand for the product. Google Trends tell us what the trend is for our word (product). It also allows us to make comparisons between different terms and by country. Through this tool, we can look for words that can bring to understand the penetration that is taking the trend in the specific market for our product. Google Trends guides us and even suggests more search options.
- – Google Keyword Tool: Determines the volume of searches based on product keywords. To use it, the first thing we do is create an AdWords account. The tools provides us with the Keyword Planner option. It helps us have an idea of the current market demand.
If after using these tools we still believe that our product can be durable in time, then we will continue with our strategy.
In reference to the market:
Before analyzing our competitors, we should answer a series of preliminary questions about the market in general:
- What is the potential market size?
- How is our competitive landscape?
- Is it a current flash market? Trend? Is it growing or stable?
- At what level is the model (local, international…)?
- And above all, who is our target? Who is our product for?
In relation to our market sector, we need to know what others are doing. This will become our competitors: are we the only ones or do we have competition? To find out, we can utilize the following tools:
- – Google’s Keyword Tool: Helps determine the volume of searches based on keywords in relation to our product idea. It can also be used to see who’s selling similar products.
- – SimilarWeb: It’s a tool that allows us to determine our current rival from our market sector.
- – SEMrush: Just like the one above, it provides us with great additional detail about general, geographic, reference/keyword information.
- – Who is: Serves to find information with regards to a particular domain and find information about number of registrations. In this regard, we also have Twitter or Facebook which allows us to know the date of account creations to get an idea of how long they’ve been active for.
With all of this information provided thanks to the tools mentioned, now comes our moment to evaluate whether we carry out the product or not. A withdrawal is better than a defeat! Think about if it’s worth the work.
HAPPY BUSINESS WEEK!