Evaluating Your Market Demand
If you have finished with your product’s evaluation checklist, you can move on to establishing the potential market demand (Note: this is only a guide and the results below can only give you an idea of your potential market demand based on the amount of internet searches already done by people).
If your product is a new concept, you should test run some ads on a social media platform to get an idea if people are interested in your product, rather than follow the guide below. You can, however, use the guide below by researching products similar to yours, or, if your product solves a pain, you can concentrate on finding consumers whose pain could be solved with your product (remember that a pain is not necessarily a physical painJ).
You start off with Google Adwords Keyword Planner Tool (if you haven’t signed up yet, you can do so for free to use the tool). As explained in one of my previous blogs, navigate to Google Adwords, On the Google Adwords bar, select Tools and in the dropdown list displayed select Keyword Planner Tool.
Once the page opens up, Select “Get search volume data and trends”
Fill the form in as follows:
Option 1: Enter keywords – Enter your product name or keywords that are relevant to your product (that which you have decided on based on your research using the previous blogs). Note that you can use more than one keyword. Here you can enter long-tail keywords (which is better if you want more accurate results).
Note: Long-tail keywords are keywords that consist of 3 or more words.
Option 2: Upload file – you can upload a file with the keywords.
Targeting – Choose the area/s you want to target (you can play around with this option to see where there is more demand). Make sure you only select the areas in which you are interested.
Negative keywords – you can leave this option (this is only for when you want to place an ad in Google Adwords).
Date rage- Select the time range for which you want results e.g. the last month, the last year, the last six months, etc. Here you can also choose to compare previous years or months with the timeframe selected.
In my search I have chosen website design and website development to give you an idea what your results could look like when using more than one keyword and comparing this year to the previous year.
Note: you can use the “Search for new keywords using a phrase, website and category” if you want to see results for keywords related to your keywords, but by now you should have an idea of the keywords you want to use. I would not use this option, because, for example, if you use the search term “Knitted Jersey” it will not only give you the results for knitted jersey, but search terms that are related to the keyword, but not necessarily to your product. In the example below, it gives you the results for knit fabric, but if you want to sell the knitted jersey itself, the results won’t be accurate as it includes the results of the other keywords not related to your selling product.
Keep in mind that this also depends on the product chosen.
Now that you have your results in a graph form, take note of the search volume amount. How many people search your keywords? Is there a demand?
The keyword Planner tool also gives you more analytics that can help you determine your market niche and what advertising will benefit you.
Select the drop down list on the graph that says “Search volume trends”
Search volume trends: The first graph option shown when doing a keyword search in Get search volume data and trends. These results show you a table with historical statistics. These statistics are specific to the location, date range and Search Network targeting settings that you select from the “Targeting” panel.
Mobile trends: Here you can see the amount of mobile searches for your product keyword compared to other devices being used to search for the keyword.
Breakdown by device: In the results I searched for, there are more searches done on computers than mobile devices and therefore I can make a note to target computer users rather than mobile users when I place ads on e.g. Facebook.
Breakdown by location: Here you can see a comparison of the amount of searches conducted by users between the areas you have selected.
How do you decide what the minimum number of searches is that will indicate that your product is worth selling? There is no minimum recommended amount, and differs from product to product. What I would suggest is that you take the results that you have worked out from the previous blog (the amount of products that you need to sell to cover your expenses) and compare it to a percentage of the amount of searches. Compare it to about 3-10% of the amount of searches done.
For example if there were 3000 searches in a month and you need to sell 200 products in a month, 10% of 3000 is 300, and therefor it is possible to attract enough consumers in the area that are interested in your product. Have a look at the competition column whether there is high, medium or low competition. This will help you decide if there is enough demand for your product.
To see how popular your keywords are in certain areas, you can also use Google Trends.
To explain how to use Google trends I will use the same keywords as above, “website design” and “website development”.
On the Google Trends page you will see a search bar on the top of the page that says “Explore topics”. Enter your keywords here.
I chose results for the last year and changed the geographic filter from worldwide to South Africa.
When you scroll down you will see the following:
When searching worldwide, you can see in which countries your keywords are trending, but when choosing the country, you can see the top provinces where your keywords are trending. Here you can also get a broader idea of where there is more demand for your product and where it would be beneficial to distribute your product.
Because I am interested in Centurion, I will select Gauteng to get an overview of Gauteng results.
When scrolling down further you will see the following graph that gives you results of related searches:
Having now seen where we have potential customers, we need to establish who our competitors are in these areas and what they are doing. In my next blog I will help you find and research your potential competition.