What are potential products? 5 steps to identify potential products

"What is a potential product" is the concern of many businessmen and marketers when researching products and expanding future markets. To accurately identify products with high potential that meet market expectations is not simple. Therefore, researching and evaluating products is very important.

1. What is a potential product?

Potential products are a prerequisite when building a business plan. Products with great competitiveness will meet the desired customer values ​​and bring profits to the business. So what is the potential product?

1.1. Concept

Potential product (or Potential Product) is a product that is upgraded and developed from the original core product. They not only address basic consumer needs but also meet the increasingly complex desires and requirements of the market and customers.

For businesses, product potential is a long-term vision of what the product could be. It is the result of constantly researching and improving technological factors, customer feedback and the business's own competitiveness.

What factors do businesses need to research to create potential products?

To clearly determine what a potential product is, we can consider its characteristics, corresponding to the questions:

• What problem does the product solve? What is the market demand for this product?

• What are the differences between your business's products and similar products on the market?

• What is the product's competitive advantage?

• How can the company reach a larger market?

• How to collect and use feedback from customers about the product?

1.2. What are the characteristics of the potential product?

The characteristics of a potential product make it different from products in the same market. To a greater extent, potential products are decisive to a manufacturer's success in gaining market share in the industry.

Those characteristic points are:

• Satisfying customer needs: meeting customer desires or solving existing problems in the market that no or few products can fully satisfy.

• Keeping up with market trends: consistent with current trends, even ahead of future market trends.

• Unique: possessing different and unique characteristics to create its own mark.

• Potential for development and expansion: is the ability to further develop functions and forms to expand the product system.

• Possessing competitiveness: lower prices, better quality, superior features, more diverse designs, more versatile,...

• Bring profit: in the long term, the seller can recover capital and increase profits.

2. What is the role of potential products in market expansion?

For market expansion and development, especially new markets, potential products are very important factors. If businesses research, build and choose the right potential products, they can shorten the time to penetrate the market and minimize risks to the maximum.

So what are the important roles of potential products when entering new markets? What benefits does it bring to businesses?

2.1. Expand your potential customer file

Potential products have the ability to increase the attraction, interest and consumption of customers in the market, especially target customers. Thanks to that, the distance to reach customers for businesses is shortened, while expanding the potential customer file.

2.2. Improve sales & profits

As the scale and ability to reach customers grows, sales and business profits will also improve. Through clearly providing the value and benefits that the product brings to target customers. The potential product to help is to increase the closing rate per product.

For example: When researching guava tea products on Amazon, the manufacturer realized that consumers tend to choose bag-shaped products and often buy 3-pack combos. So this will be an important factor to improve the product before going on the floor.

Potential products bring many advantages to sellers

2.3. Expand brand & product position

When finding and developing a new potential market niche, if sold well, the seller will increase the ability to build a solid foothold and conquer that market. Thanks to that, the brand image is also enhanced and spread more widely.

At the same time, if the product meets the needs with worthy quality, consumers will leave good reviews and positive feedback on the platform. This will improve product ratings and will continue to increase sales.

Read more: Learn to sell on Amazon and top courses that should not be missed

2.4. Develop competitive capacity

As explained about what is a potential product? We all understand that a potential product has special features and benefits that help it stand out and attract customer attention in a competitive environment. Therefore, it helps the company maximize its competitiveness.

Not only that, from constantly researching and improving suitable products. Enterprise resource factors will also be promptly paid attention to and developed accordingly: human resources, costs, machinery and equipment, etc. This helps the company keep up with trends and adjust existing problems. condensation.

3. 5-step guide to finding potential products on Amazon

Finding products to sell is a long and complicated process, requiring meticulous and careful preparation from the seller. So what is the process to identify potential products? Refer to the 5 steps below.

5 steps to help answer questions about what the process of identifying potential products is

3.1. Market research

This is the first important step that sellers need to take. With this step, sellers will need to collect and analyze market information to be able to obtain meaningful data.

Search for customer needs

A potential product must be an item that satisfies a need or solves a customer's "pain". Only then will the product have value and become attractive. Sellers can carry out campaigns to collect information, reviews or customer needs so that they can promptly detect the needs and problems that consumers are having.

Research market trends

The Amazon market operates and fluctuates continuously. Therefore, products sold need to keep up with trends to attract customers' attention. Sellers can use tools: Jungle Scout, Helium 10, AMZScout,... to identify current trends.

In addition, Amazon Keyword Tool,... is also an effective tool that allows sellers to track keywords about products. At a higher level, brands can predict future trends to stay ahead of the market. Even creating trends to lead the market.

Analyze competitors

Learning about competitors helps businesses gain insight into the competitive market. With factors: products, strengths, weaknesses, policies, position,... sellers can determine market saturation and the level of competition of competitors.

Markets that are saturated, competitors that have a strong foothold and loyal customer files are not the optimal choice for sellers. And understanding competitors will help sellers build more appropriate and effective competitive strategies.

3.2. Select potential products

After finding product insight, the seller needs to choose the most suitable product or products to proceed with business planning. The product needs to be consistent with the business goals, financial plan, feasibility, etc. of the business.

Learn more: Instructions for building the latest business plan for 2024

3.3. Develop related plans

The process of finding a potential product does not stop at choosing that product. The product needs a suitable launch and business plan to promote optimal effectiveness. In addition, sellers also need to build and adjust related plans: financial plan, distribution plan, marketing plan,... so that work goes smoothly and functions are consistent.

3.4. Product testing

Before developing a long-term business orientation, the product needs to be put on the trial floor for a short time to test and evaluate the actual situation with factors such as: reviews, customer feedback, opponent's reaction...

3.5. Evaluate and adjust

Finally, the seller needs to handle and adjust errors and problems that arise (if any). Then, proceed to make a long-term business plan. Testing, evaluating and adjusting before officially selling will help sellers optimize product performance and business results.

However, during the sales process, sellers still need to regularly monitor the situation to make appropriate adjustments. This process will take place throughout the product's business journey.

4. Conclusion

By clearly understanding what the potential product is and following the above search process correctly, the seller will find the right product for business. This is a process that requires meticulous research and preparation from the seller. Doing this function well will help the business run smoothly and develop sustainably in the long term.

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