Have you ever wondered why car and electronics manufacturers are constantly changing their products? Are you starting to think that there might be some merit in refreshing your own offer? Have you ever been faced with indifference by that perfectly qualified prospect as soon as you started to outline your favourite products of services?

It always pays to make sure that we are using our hard-won market intelligence to maximise our own sales. If it has been more than a year since you reviewed your portfolio, now might be a good time to take stock.

Symptoms of a Declining Product Line

How do you know when you need new products or services? Here are seven symptoms of a declining product line. From these, you should have some advance warning – early enough to help you do something positive before it is too late. Not all these symptoms will be apparent in all cases, but you can be concerned when more than just one or two become apparent.

1. Growth is slow or non-existent;

2. Top customers spend less and less money with you;

3. You are constantly surprised by new competitors you have never heard of;

4. Price becomes a constant obstacle to sales;

5. Your sales force start to defect / your own sales efforts become jaded or lack-lustre;

6. Enquiry rates are diminishing;

7. Constant requests for product / service changes that you are reluctant / unable to make.

Keeping Products and Services Fresh

Whether you are saving an old product line or starting a new one, you want to make sure you keep on top of the market. Here are practical things you can do to make sure your products stay fresh and viable:

• Technology Watching:

  • Keep current with technology changes. The word processor lead to the demise of the typewriter, voice messaging has changed the way people use the telephone. While your product line may not have the global impact of these developments, changes in technology will always affect your business. Lead the way – rather than react to events?

• Anticipate changing customer needs:

  • If you want your customers to keep buying from you, you have to let them know you will be there to fulfil their changing requirements. Customers have a way of not knowing exactly what they want. When they finally make their choice, they will go with the supplier who is there with the right product at the right time. That means keeping the dialogue going – whilst prioritising your time based on your qualification criteria.

• Track competitors:

  • Keeping on top of what your competitors are doing means you find out when they make effective product developments. If they get to the market before you, they will take customers from you. Organise some sort of competitive-intelligence-gathering system that will help you keep track of what they are doing.

• Keep up to date with changing market trends:

  • How many clothing manufacturers saw "dress-down Fridays" coming? If you were a maker of men’s suits, it would have been better to see the future before you experienced a 20-percent decline in sales? There is no substitute for keeping your eyes and ears open. Improve your awareness of the market around you. Participate in trade associations and business roundtables. Make best use of your networking. Know all you can know about your customers and your customers’ customers.

Places to look for inspiration

• http://trendwatching.com

• http://www.trendhunter.com

• Networking at trade associations

This was a guest post by Paul Fileman of SPS who are a national team of proven senior management professionals, passionate about working to help businesses achieve their next level of development and performance. Whether they are facing market changes, financial problems, people/skills issues, or are preparing a major project, they offer dedicated support from a multi-disciplined team of experts.

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