You need to find products that will give the business areas of uniqueness or
specialization. These types of products are likely to have the greatest growth
potential for the business.
These are some of the questions to ask about all product lines carried by the
business.
- How many businesses are now marketing the products in your market?
Who are they?
Where are they located in relation to your business? - What is the possibility of obtaining the rights for the exclusive
representation of the product in your market?
If so, for what period time would the exclusive be?
If so, what would be the performance criteria? - How complete is the inventory of the products stocked by these
competitors? - How do these competitors market their product lines?
Are they usually sold at regular prices or are they constantly on-sale at
some stores?
Commodity—In a general sense, the word means anything that is traded—bought
and sold. However, as a business term, it is usually used in reference to raw
material products of any kind that may be traded on the stock market such as
lumber, metals, beef, cotton, or whatever.
The term is also used in reference to finished goods of any kind that have become
common in use, of generally similar quality and so generally available, that
the consumer tends to buy them on the basis of price only.
Examples of such items might be toilet paper, nails, packaged water, many food
items, or electrical wire. There are some minor differences to distinguish one
brand from another, but it can get to the point where the consumer sees little
difference between brands. When this occurs, the business world refers to
such an item as becoming a commodity.