21 Jun Why market research is required for a new product?
Launching a new product is all about hitting the right buttons in a customer to motivate them to purchase your product. Today, customers don’t seek a representative to boast about a product. They have the power, choice, and resources to make purchase decisions even from the comforts of their home, by clicking a few buttons.
Customers take referrals from friends, families, and even influencers, before buying a product. Your product must fulfil their requirement like no other to make it to their preference list. You must know what complements the customer research, shopping ideas, and purchase habits. It requires a lot of effort to understand your customers deeply. You must know your potential customer, specific markets, and how you can influence them to make purchase decisions in your favor. Without research, you may develop a product that doesn’t measure up to the user expectations. If users don’t like it, they know their way out of unfavorable items.
What is market research?
Market research means collecting information about the specific market to know if your product can compete. You can verify the product’s success and how to draw more customers to utilize it. Thorough research will help you understand the market / potential customers and how to deliver them value. Once you know how to deliver value to customers, you can build strategies around your ‘how?’.
Why is market research crucial before launching a new product?
Market research is important for several reasons. It can make your product a big success. Let’s take a look at a few of the reasons why you can’t skip market research before a new product launch:
- It helps you know your customers and their pain points.
- When you are specific about which pain point you can resolve for which category of audience, it can draw a larger audience than your competitors.
- You can gather information about unaddressed customer needs and turn them into selling opportunities.
- It gives you information on what’s trending in the industry and among your potential buyers.
- You will know whether there’s demand for the product or service you are investing in.
- Market research helps you scrutinize where your current and potential customers research for products.
- You may be able to influence customers to make purchase decisions.
- You can learn about customer attitude about pricing, brand, etc. of a product.
- With all the information, you can create a product that naturally appeals to them.
- The market research also helps you meet the buyer where they are and simplify their purchase experience.
How to conduct market research before a new product launch?
Primary Research – It helps to gather first-hand information from your potential customers. Here’s how to do it:
- To conduct market research, you must first know your target. Be specific about your target audience based on age, gender, location, job title, etc., depending on your offerings.
- Now, look for the right people to engage with. Access people through networks, social media, and an active customer base. Always plan an incentive for the participants as they are offering you some valuable information.
- Prepare a questionnaire to learn about them. Your questionnaire can be specific about resolving an identified problem. Your questionnaire can also be open-ended around potential problem that people haven’t identified yet.
- Keep the records safe to get back to whenever necessary.
Secondary Research – Secondary research helps analyze your competitors.
- You can use the public resources provided by the government.
- You can also use the commercial reports that come in a portable and distributable format by paying them a cost to download the information.
- You can also utilize the market data your organization has internally.
- It can help you build a good understanding of your competitors and how you can do better than them.
Market research offers critical pieces of information that lead to the success of your product. It’s an inevitable step for a successful products launch.