You've had a great idea, you've designed and even manufactured your product. But how do you get into the shops?

Ian Frost, a computer software designer from Surrey, has just this problem.

He and two friends have come up a new toy: the Matgames Floorstation.

It's a brightly coloured mat which is placed on the floor, wired up to a computer and powered by a CD-rom. It can be used to play games, or even compose tunes.

"I've tried to make being on the computer a much more interactive experience, by taking the computer out of its box and putting it in people's living rooms," explains Ian.

Off the ground

The Floorstation has undergone a rigorous testing programme by Ian's four children, but what's proving much more testing is launching the mat on the market.

"It took two years to develop and we produced prototypes with finance from friends and colleagues," says Ian.

He tried to get the mats made in the UK, but found it to too expensive.

"We had a small production run of a thousand mats made in China, and developed two CDs which demonstrate its range of applications."

They took the Floorstation to toy fairs around the country where the initial response was good. But encouragement is not what the entrepreneurs need.

"We need somebody who can take the idea further, who can realise its potential and can put in the funding," says Ian. "It's very hard to compete with big firms' spending powers."

Expertise

Ian admits his project could also do with some marketing know-how.

Roger Cowdrey: "The education sector would be a responsive marketplace for the mat."

The Floorstation does not have a price tag yet. Ian is unsure where the mat will be sold, or who his target market will be.

Small business adviser Roger Cowdrey, from the Thames Business Advice Centre, says there's a lot to consider when making sure the marketing is right.

He says that Ian needs to identify his market, how he will reach them and then how much he should charge.

Roger believes "the education sector would be a responsive marketplace for the mat".

Multipurpose

The Floorstation could be used for a lot of things; unfortunately this seems to be one of its biggest problems.

"You could give this product to a school or put it in the chill-out room of a nightclub. Who's your audience? Both will work," says Lee Coomber, the Creative Director of branding consultancy Wolff Olins.

"But people like a product to know what it is. Successful brands all have a very definite idea of what they are," he adds.

The experts agree the Floorstation has great potential, but it needs to be much more focused so people know exactly what it is they are buying.

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Student Guide

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Ian Frost is learning about business the hard way.

There is more to building a business than just making a product.

Many people with a bright idea don't realise this until it is too late. Marketing is often critical to success. If people don't know about your product, how can they buy it?

Marketing is often divided into four categories.

Together they make the marketing mix.

Product - what's to be sold?

Price - how much to sell it for?

Promotion - how will people know it's there and be persuaded to buy?

Place - how can the product reach the customer?

Ian has only one of these Ps, the product.

He has no price, promotion or place. There is a website - which might count as place but if the product has no price, how can people buy it?

How can he make the other three Ps work to help him sell the product?

Price

Getting the price right is tough.

If you make the product too cheap people might think it's no good.

If you make it too expensive people can't afford it.

Trying to balance the costs of production, what people are prepared to pay and the need to make a profit is tricky for a new product like Ian's.

Business may have different objectives in setting a price.

A new product may be aimed at people who always want to be the leaders of fashion so its maker may decide that the will pay a high price for their cool image! This is price skimming.

A new product might need some help to break into the market so its price is set low to attract customers. This is penetration pricing.

A producer might decide how much profit is needed and just add it on to the cost of production. This is cost-plus pricing.

A new product might be priced at a similar level to similar products. This is competitive pricing.

Just think...

What sort of pricing policy should Ian use for his Matgame? Why?

Promotion

If customers are to buy a product, they need to know all about it and be persuaded to buy it.

Most products have some competitors so you have to be sure that people will want yours.

There are all sorts of ways of going about this. Many of them are expensive so a business must think carefully about which strategies to use if it is to get a good return for its money.

No business has unlimited resources to spend in this way.

Advertising informs and persuades. It is important to choose the right location and style. Will your potential customers see it? Will it catch their attention?

Sales promotions give people an incentive to buy. It might be a free gift or a discount if you go on buying.

It's quite easy to get the first sale but persuading customers to return is trickier.

Sales promotion, like loyalty cards, is a way of solving the problem.

A wide product range helps to keep customers. If there is a shampoo for every hair type, one of them must suit every potential customer. Car companies almost always offer a range of size and style to need customer desires.

Just think...

What strategies should Ian use to promote his product? Remember, he hasn't much money to spend.

How could the following businesses promote their products?

The local milkman

A new computer games magazine

A take-away restaurant

A car company with a new small car

Place

Ian has a website and might use this to sell his product but he needs to think about how he will get the Matgame to his customers.

Will the website give enough access to the product to make the business work? What else might he try?

Selling to shops: Persuading buyers from big companies to stock your product can be both hard work and time consuming. But if you are successful, your product will be put in front of millions of customers.

Mail order and the internet: Many businesses sell products using catalogues or websites. This can be an effective means of distribution.

It is often cheaper than setting up shops and some people like to browse a catalogue, picking it up and putting it down over a period of time before deciding what to buy.

TV stations: Customers can buy products 24 hours a day from the television. A wide range of products can be sold in this way.

Some customers like it because they can see the product in more detail before they buy. The nature of the product will affect the way it is sold.

Some services can only be sold by meeting people. A haircut can't, as yet, be done by remote control.

Just think...

How should Ian sell his product?

What products are best sold by each method of distribution? Why?

Making a mix

The marketing scene is increasingly complex.

Customers are growing more sophisticated and are looking for more from the products they buy.

Products have had to grow beyond the physical item or service that is bought.

Factors like image, customer service, aftercare and much else are increasingly important.

A modern product needs to take all these factors into account.

How often do you hear people complain about customer service? If a business has got it wrong, customers will not return.

Many businesses spend millions on market research to help them meet their customer's desires.