'Route-to-market' Research
Notes:
Def - "how you intend to get your product in front of your customers... different routes to market will suit different kinds of products and services"
Make as simple as straightforward as possible for your target customer to discover and buy your product/service
Will sell directly to customer, not through a third party
I will sell using DIRECT CHANNELS (include sales reps, physical shops, e-Commerce websites, mail order and exhibitions)
QS -
- Selling to = Consumers(?)
- Do your customers have to be actively persuaded to buy your product or do they need to buy it anyway? = leaning mostly towards need anyway, but some could be persuaded if they do not feel that way to start with
- Do your customers have to be actively persuaded to buy your product or do they need to buy it anyway? = leaning mostly towards need anyway, but some could be persuaded if they do not feel that way to start with
- Product or Service? - SERVICE
- Do your customers need to 'inspect' your products before they buy them? - It will be useful for them to 'inspect' past works of mine so they know what type of quality or skill they are paying for
- Will customers see your product or service as a major purchase, a mid-range purchase or an incidental purchase? = Mid-range
- Where are you primarily targeting your product or service – locally, regionally, nationally or internationally? = Locally (to begin with)
- Does the product or service need to be installed or fitted at the customer’s premises? = No.
5 Potential Ideas for my Enterprise
1 - Selling online
+ payment transactions have become more secure
+ open for business 24/7
+ don’t have to worry about any negative PR from third-party involvement gone wrong
+ location and distance barriers (almost )disappear, and no travel or parking is required
- older generations may struggle due to lack of internet knowledge
- You’ll be responsible for everything, from product marketing, completing the sale, as well as after-sales support
2 - Using sales agents
These are generally "generally freelance, self-employed people who work on a commission basis – in other words, they only get paid if they sell"
+ a quick and cheap way to get your product in front of lots of potential customers without having to spend time and resources recruiting your own sales force
+ experienced sellers, which makes it a great solution if sales aren’t your strong point
- You have little control over how your products are described or explained, which leaves you relatively powerless when it comes to the portrayal of your brand in the field
- Third parties also have their eyes set on immediate sales rather than establishing long-standing relationships with customers, which may hinder your sales later on
3 -Trade shows or exhibitions
Attending trade shows and exhibitions allows you to not only directly contact many end-consumers, but can also be an excellent way to make valuable network connections
+ Allows face-to-face explanation and discussion to reach a sale
+ Allows for great exposure and offer a lot of opportunity for networking
+ Putting a face to your brand can help boost the brand identity and create a lasting impact on your customers
+ an opportunity to engage with your potential clientele and carry out crucial market research
+ you’ll have exposure to all your competition, which is an easy way to evaluate what they do well, and what you need to watch out for in the market
- a spot at a trade show can be extremely expensive. The bigger the show, the bigger the likelihood of a better pay off – but it can be a risk
- There’s a lot of logistical preparations involved to get your company to a show, and you need to factor in costs such as accommodation, travel and food for you and your team
4 - Opening a retail 'shop'
Since my business sells a service and not a product, this shop would have to act more as a place for me to work, as well as a definite place where I would be for people who are curious about discussing potentially hiring me face-to-face and anything else
+ allows for personal interaction with customers and the ability to satisfy requests quicker
- having a physical premise means big overheads – from rent, business rates and furnishings to maintenance outgoings
- Unless you’re a chain, your customer reach will be severely limited by geographical location and your opening hours
- Not able to be available 24/7
5 - 'Pop up' shop
Similar case with setting up a retail shop when it comes to me offering a service and not a product(read above), just in a temporary form. This can be a big appeal, giving the venture both an element of surprise, and one of urgency. Be sure to exploit your social media channels to spread the word and create some excitement around the pop-up
+ A pop-up store is cheap and low risk, requiring few overheads
+ As a temporary investment, it can give an insight into whether the business model would work having a permanent premise
+ Fantastic way to establish real-life links with customers: you will receive instant feedback from end consumers, and you can carry out some market research at the same time
- Little opportunity to build a long-term loyal customer base, as you won’t be sticking around
- Can require a significant amount of planning, (sometimes months of logistical preparations) for what may be just a two-day event
Conclusion:
The best option out of these five strategies is likely the 'Selling Online' one, due to the nature of what my business is selling - a service and not a product. Three out of the five options, while they could be adjusted to fit better for a service industry, are much more fitting for businesses who supply products to their customers, or at least a service which could be done in store (for example hairdressing), while video editing, as a service which takes hours to complete, simply does not make sense to run in a physical store format for example. Instead, those stores would have to be used for the client discussion part of the job and all of the face-to-face elements, which is not enough of the process to justify running the business that way.
Instead, running a website where past work, contact details and other important information is held is a much more streamlined, cheaper alternative, which still allows face-to-face meetings to be planned with clients if requested, while also allowing online communication if wanted, and allowing me as the editor to spend much more time on each project in a less stressful location. To find this website though, I will also make use of other online rescources, such as social media accounts for the business, advertising (Instagram ads, Google Adsense, etc) which are able to target more specific audience types, and making use of the communication part of these sites to create much more of an approachable, 'real' feeling to my business (responding to comments and direct messages for example).
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