The “long-tail phenomenon” is a buzz word for selling smaller quantities of a wider range of goods. The goods are designed to mirror consumer preferences and have higher profit margins. They fill a niche.

Companies have embraced the long tail for some time. Low volume, high-profit product examples include super-premium ice cream, heritage meats and heirloom vegetables.

The idea doesn’t work for all types of products, but it does work for unique marketing areas in which products are so pleasing that certain consumers are willing to pay more.

Other qualifications, according to The Wall Street Journal:

Determine what is a real sweet spot rather than a valueless niche. Listen to what customers say to you and on their blogs. But think about it. Henry Ford reportedly said if he’d asked people what they wanted in the way of transportation, they would have told him, “a faster horse.”

Using tools like SpredFast, TweetBeep, StepRep and HowSociable make keeping a pulse on your market more manageable. These tools enable you to track brand and keyword mentions, so that you can respond accordingly.

Standardize components to limit the costs of producing another product line. Variety and standardization can be achieved at the same time.

Before starting anything new, review your present products and weed out those that are not profitable. But some products that make little profit have value when considered in broader terms. They can make your company’s other products more profitable.

The sweet spot products don’t have to be better than others already on the market, but they have to be different and appeal to the targeted customers.

By holding a focus group, you will find out a great deal about your customers, their opinions of your company, their purchasing habits and their needs.

Most groups include about a dozen people. Some should be current customers, but it’s also good to include people who aren’t familiar with your business. No employees should be part of it, and no competitor should be invited.

You can select the attendees yourself or hire a research firm to find participants help you plan and conduct the session. According to Business Week magazine, the firm could charge $2,000 to $5,000 depending on how much you have them do.

Where you will hold the focus group is a big decision. Organizations, such as Qualitative Research Consultants and the New York American Marketing Association, have facilities equipped with video recording equipment and one-way mirrors so you could observe the group without your presence becoming a distraction.

Decide what you are trying to learn and have a list of questions and conversation starters on hand. One good question: How would you describe who would use your service and products and why?

You can lead the discussion if you can comfortably — and impartially — moderate the group. Don’t do it if you are sensitive to criticism. People can be blunt and give negative feedback, but it will probably be their honest opinion.

Make sure everyone participates. If one person is dominating the conversation, avoid eye contact with her or him and turn toward quieter members of the group to draw them out.

Don’t let the discussion wander too far afield. At the same time, be flexible and let the conversation flow. Someone might bring up an idea you haven’t considered.

As you examine your findings, watch for the themes and ideas that stand out. Consider how you might use them in your product development.
If you had professional leaders, they can help with this task.

As most of you are aware, my early work experience included several years running a market research field office — it provided me with invaluable insights into how customers think and make purchasing decisions.

What you may not know is that you don’t have to be a multi-billion dollar corporation in order to conduct your own market research.

This short video tutorial will guide you through the use of one handy (and free!) tool that you should add to your marketing arsenal.

Is social media a fad? Or, is it the biggest shift since the Industrial Revolution?

If you haven’t heard already, Erik Qualman, author of the new book Socialnomics, has created this video that has been viewed an incredible 11,000+ times since 7/30/09. Just goes to show how fast social media spreads the word.

Brands can now be strengthened or destroyed by the use of social media. Online networking sites are being used as giant, free focus groups. Advertising is less effective at influencing consumers than the opinions of their peers. If you aren’t using social media in your business strategy, you are already behind your competition.

Look for our upcoming review on Socialnomics soon. In the meantime, check out some of the interesting social media statistics he shares in this short video.