Product research is an integral part of market research and crucial for developing new products. Market research is the process of obtaining information about a product or service to help determine whether it’s right for your target audience and buyer personas. Market research includes gathering critical data, such as consumer requirements, desires, preferred retail locations, etc.
Conducting product research is crucial to the success of any new product or service. It helps you test your assumptions about demand for a particular type of business, which can be used in pricing decisions and avoiding expensive mistakes on launch day like overestimating customer interest.
Professional organizations like New Product Consulting in Denver, CO, can be invaluable for startups or even established businesses who are planning to launch new products.
Use the following five tips to conduct effective product research.
1. Know Your Target Market
The more knowledge you have about your target customers, the better your chances to convince them to buy your product. One way of gaining this information is by looking at what products or services an individual has purchased in the past. These insights reduce the guesswork when creating new offerings.
2. Explain Why Customers Should Buy Your Product
Keep in mind that people buy products for different reasons, so be sure to highlight the benefits of your product. For example, if you’re selling luxury cars, then status and reliability might top the customer’s list, while affordability may not even make an appearance on it at all!
3. Learn About Your Competitors and Their Products
Unless you are bringing a product that did not exist before, chances are that there will be other products like yours in the market. Therefore, conducting a competitive analysis is necessary. A competitive analysis is a review of competing products very similar to those you sell. In contrast, a comparative analysis looks at consumers’ alternative options to your products.
A competitor is any business that sells, manufactures, offers, or provides the same product as yours. You need to gather information about them. This can include data such as what products they offer, what features and benefits those products have, how much they cost, where they’re sold and how they’re marketed. You can also research what kind of customer base each competitor has.
4. Build a Prototype
If you want to make sure your idea becomes a reality, start researching potential competitors. Build an interactive prototype and conduct a focus group session so that people can give feedback on what they like or dislike about the product before moving forward in designing it further. Showing off this prototype will allow retailers and wholesalers to get involved early!
5. Conduct a Market Test
To ensure your product is appropriately priced and marketed, test it in limited areas before releasing it across the entire marketplace. Consider using different price points for each market segmentation so you can see what works best with specific customers or groups of people who have different interest levels from one another.
Conducting field tests on consumers’ reactions and analyzing results gives entrepreneurs valuable information for improving their business strategy based on the feedback received during these exercises.
New Product Consulting has helped several startups in Denver and across Colorado successfully launch new products. If you have an idea you want to explore, book a free consultation with our team.