What are the key factors for product selection? It is widely known that to undertake a business venture requires adequate preparation. The options for an entrepreneur on goods and services are numerous, just as opportunities for investment are uncountable and diverse. Nevertheless, the first step towards successful commercialization is the selection of essential service or product.
Goods and services are the most significant and visible contact with consumers and represent the mental symbols of the customer’s goals, social patterns as well as private attributes.
So what are the factors affecting product selection process in business? Products can be defined as any manufactured article or creation which can be offered for sale, use or utilization. Therefore, the following are some of the factors which affect the process of product selection:
Here are some key factors associated with product selection:
Financing: The size of the amount needed is one of the biggest factors that influence product selection. For proper development, production, promotion, sales as well as distribution, an adequate financing and resource is an essential requirement in product selection process.
The Disparity in The Supply Chain: It is the size of the demand in an unfulfilled market that will determine the selection of a particular product. Business opportunities arise as a result of the magnitude of the demand in a particular niche. It is, therefore, the niche product which has a high chance of success as reflected in its market that will be selected. The existence of a noticeable demand for the selection of a product is paramount.
Accessibility and Availability of Raw Materials: Since different products require the use of various raw materials, the source, quantity as well as quality of the materials are some of the major influencing factors that affect the process of product selection. Are the raw materials easily obtainable within a few hours or days? How much is the magnitude of the materials and is the source of the raw materials impeccable? Can you readily access the location where the raw materials are situated? Answers to these and many other questions must be amply provided and be satisfactory.
Nature of The Product: The nature of the product is also one of the important factors to be taken into consideration. The physical characteristics of a commercialized product will determine its means of distribution. The type of distribution channel for perishables will not be the same for imperishable products. Perishable products have to utilize a shorter channel to reach customers in the shortest time possible to maintain its quality.
Marketability and Profitability: The product that has the highest potential for profit is most often, the product that is selected. On the other hand, if a product can be sold as an accompaniment to an existing product and is marketable, then it is a wise option to consider.
Technical Issues: Another factor that affects product selection is the technical process of production. It is important to take cognizance of the technical effect of creating the product and its implications on the production line already in existence as well as the accessible technology required. The manual workers that will be on hand to see to the smooth production of the product are key factors associated with product selection. It is the selection of a particular product that determines whether the available types of machinery will suffice or if there will be a need to procure new or refurbished machinery to handle the manufacturing process. How satisfactory and acceptable the product will be for the consumer and its technical acceptability will go a long way in meeting the requirements in the product selection process.
Qualified Employees: How many of your employees or workers are professionally qualified to handle the production process as well as the promotion of the product when it is ready to hit the market? The availability of skilled human resources will go a long way in determining the profitability of the product as the costs of creating the product will be kept to a minimum. There will be a drastic reduction in some wastage since professionals are the ones handling the production process.
Policies of The Government: There is so much one can do regarding this factor, as it is one factor that is totally uncontrollable. The focal point of public policy can inadvertently influence or affect the selection of the product you want to produce.
Company Objectives: One more factor that affects product selection processes is the realization of the organization’s short as well as long-range goals and objectives. Is the creation of the product going to contribute to the accomplishment of the company’s objectives? If not, then the product may have to be revised.