Market Research: Does It Matter? 5 Reasons to Do It for Your New Product

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Why Market Research Matters

Why Market Research Matters, an article by LA New Product Development Team

In the scheme of long-term success, a company who prioritizes market research will always come out on top, while the company who neglects this significant step will inevitably sink.

What is market research? It’s an incredibly invaluable tool that grants you a detailed picture of what your specific market looks like. It provides you with a wealth of knowledge in regards to developing business processes, increasing revenue, effective business practices, useful tools for communication, intel on competition, situation analysis, and satisfied customers. Nowadays, selling a product without having performed market research is nearly impossible. You should bump it to the top of your to-do list for each of the following reasons:

#1. Market research places emphasis on your customer

Market research provides you with the knowledge you need to keep your consumer at the forefront of your mind as you pursue your invention idea. It’s easy to get caught up by the internal politics and workings of your brand, but you must remember that without your consumer, your invention is worthless! Market research provides you with valuable data about your market’s consumer behavior, and their unique needs, criticisms, and desires. By learning to view your invention from their perspective (the most important perspective), you can determine the adjustments you need to make.

#2 It keeps your eyes on the prize

When you are working on your new invention idea, your vision can get shrouded by the overwhelming tasks of managing multiple projects, staying organized, and prioritizing tasks. If you properly carry out market research, you will learn what exactly is most important to your customers- therefore clarifying where you should focus your energy, and how to most effectively maximize your time.

#3. It clarifies lucrative growth opportunities

Chances are, if you are in the process of creating a product, you are hoping to grow a fruitful business! But when there are so many variants of paths and opportunities, it seems nearly impossible to know what will actually help you grow into a lucrative brand. Market research provides you with insight on how successful your product is likely to be, and which opportunities provide the highest revenue potential for your brand.

#4. It keeps you focused on the future

Market research is not just a one-time assessment. It’s a task you must perform regularly so that you can constantly be in the know with consumer and customer needs. By regularly conducting research, you can consistently adapt your brand to meet the consumers’ long-term needs. It’s important to focus on short-terms goals, but you don’t want your invention to be a one hit wonder. You want it to last. Market research allows your business to remain relevant so that consumers will stay interested and excited. If that doesn’t happen, a more relevant brand can quickly replace you.

#5. It reduces risk

Market research provides you with expansive information about your specific market, audience, competition, product, and so much more. By being equipped with this knowledge, you can make decisions with increased confidence. The research will back up your decision-making, and you can successfully minimize your risk for failure

 

 

 

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Author

Konstantin has three degrees in engineering (including a Ph.D.) along with years of R&D, sales, and management experience. He combines his technical knowledge with innovative thinking and leadership skills delivering ground-breaking solutions, products, and services.

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