Overly confident new business owners are often under the impression that simply because they have a superior product they will be more successful. Of course, product (or service) superiority is a matter of several factors including consumer opinion. Just because something is technically better in terms of technical specification, does not mean that it will be seen as such by the general public.

Effective marketing

In certain circumstances in the past, a number of companies have suffered from falling sales or smaller profit margins than expected when their “superior” product was outsold by another product in the market. Most recent example being the battle between Blu-ray and HD-DVD. Although some agreed that HD-DVD was superior (and had a name which would more easily appeal to the public), Blu-ray won the battle and tore ahead in the sales charts. The companies behind HD-DVD may well have underestimated the marketing powers of those behind Blu-ray. After all, an excellent product is no good if no one knows about it. Something simple like the inclusion of a Blu-ray player in every Playstation 3 gaming console may well have also been a deciding factor in the battle. As another example, the iPhone 4 has apparently outsold every other phone in the market despite the numerous problems with signal loss. Clearly this is down to both brand loyalty and clever marketing.

Overly confident business owners

There is also danger that a confident business owner will become complacent. If a product or products has done well in the past, it does not necessarily follow that the same will continue in the future. This is clearly evident from recent news where mobile phone giant Nokia felt a large pinch in sales caused by the surge in new smart phones from other companies entering the market.

Being successful in business

Being successful in business requires much more than just a good product. Good marketing research, appropriate advertising and customer satisfaction are necessarily also deciding factors. If you are thinking of starting your own business, be sure to cover all your bases, don’t scrimp on any element and you’ll be far more likely to get ahead.

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