How To Conduct Market Research for New Product Development

In the bid to change the world with your next big product idea, do not downplay understanding what your target market needs. In fact, your impressive product idea is expected to have come from thorough market research. And this is not a product of assumption, it is rather a systematic process.

As a result of not knowing how to do market research, many inventors are unsure of what to create next. And even when they are, some are uncertain as to whether the market would welcome the product with open arms. This is why understanding the process of market research for product development is important for you.

Therefore, this article would focus on explaining what market research is. It would also clarify how to conduct effective market research for new product development.

What is Market Research?

According to Shopify, market research is the process of systematically gathering data about people or companies – a market – and then analyzing it to better understand what that group of people needs.

This aspect of product development is very crucial to the creation of a product idea itself. Most often than not, the improvements to be made to a product are also birthed by the preferences of the target market. And the reason is that market research is how you find out the wants and needs of the people most open to purchasing your product.

Thus, market research is important for new product development because it helps you understand your target market and what they need.

REASONS YOU SHOULD CONDUCT A MARKET RESEARCH

• Identify Potential Customers

In market research, you are likely to see a fraction of your industry’s market which is yet to be explored. That way you can begin to make business efforts to attract them. And these efforts are usually through a product development process of fine-tuning products to their preferences.

• Understand Customer Pain Points

This is a great way market research helps you as a business. It does not only give insight into customers’ preferences but also into their frustrations. This observation helps to show their challenges with your product or with general products in the market.

Thus, you can find ways to improve your product. You can also attract other customers by using your product as the solution to industry problems they have to deal with.

• Pricing Your Product Competitively

Market research is also an effective way to know how to set prices for your products. By collating data from customers, you would be able to decipher how best to position your product to fare well competitively in the market, especially with pricing.

HOW TO CONDUCT MARKET RESEARCH

• Surveys:

Market research surveys are questionnaires that collect responses from a target audience of consumers. A brand uses market research to identify the pain points, preferences, and interests of its customers. And this is done via the use of questionnaires.

Surveys are a great way to collect data from your target market. And this would give you exhaustive insight into their patterns and desires. Good feedback on how to improve your product can usually be gleaned from this processed data.

• Focus groups:

This is the use of small groups to get important data for your product. Focus groups are a great way to get in-depth feedback from a fraction of the market. You can use focus groups to get people’s reactions to your product idea and to get their suggestions for improvement.

Even though this method is not an interview per se, it helps to spur discussions between participants. And these conversations could go into great depth on the subject at hand. This in turn helps you to gain deep insight into what is going on in the mind of an average industry consumer of your product.

• Interviews:

An interview is also an effective way to get more personal feedback from people. You can use interviews to ask people about their experiences with similar products and to get their insights on your product idea.

Once you have collected your data based on their experiences, you need to analyze it to find patterns and trends. This will help you understand what you need to focus on in order to make the product irresistible for your target market.

ADDITIONAL TIPS FOR CONDUCTING EFFECTIVE MARKET RESEARCH

• Start with a clear goal in mind:

You must be clear on your objectives for carrying out the market research for product development. So, typical questions to ask yourself before you begin would be:

• What do you hope to achieve with your market research?
• Do you want to identify potential customers, understand their pain points, or figure out how to price your product competitively?
• What market research method is most suitable for your business?

• Be Audience-Specific:

Do not go carrying out market research on everyone in the market. Find out who your target market is and tailor your research to them. Thus, you must understand your niche and only interact with your audience throughout this data collection process.

Usually, your audience is made up of existing and potential customers who interact consistently with your industry. And these are the people to focus on in this process.

• Engage in a variety of research methods:

You have to realize that no single research method is perfect. So, to get a well-rounded view of your target market, use more than one method.

• Analyze your data carefully:

Once you have collected your data, take the time to analyze it carefully. Look for patterns and trends that can help you understand your target market.

Sometimes, you might need to hire a professional to help you extract valuable insights from the pool of collated data.

• Use your research to make decisions:

Use the insights you gained from your research to make decisions about your new product development process. This will help you increase your chances of success.

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