EXACTLY how I do market research for new products
How I do market research?
It’s an entrepreneur’s worst nightmare: getting obsessed with the “perfect” business idea, painstakingly creating the perfect product…
What is the first step in conducting market research for a new product?
Market research is an important aspect of any business, and it plays a crucial role in identifying potential demand, understanding the target audience, and gauging the competition. Conducting market research for new products can be intimidating, but with the right approach and tools, it can be a valuable asset to the success of a product. In this article, I will explain exactly how I do market research for new products.
Step 1: Define the problem and research questions
Before beginning any research, it is crucial to identify the problem that the new product is meant to solve, and formulate relevant research questions to guide the process. The research questions should be specific, measurable, achievable, relevant, and time-bound (SMART).
Step 2: Identify the target audience
Knowing the target audience is essential in identifying and understanding their specific needs, wants, and preferences. By selecting a target audience, it is also easier to design surveys and focus groups to gain more information.
Step 3: Gather information from secondary sources
The internet is a great source of information for market research. Secondary sources such as competitor analysis, industry reports or trends, social media and market shares can be analysed to gain insights into the market and its audience. For instance, I frequently check competitor websites to see what products they offer, what language they use when marketing, how they price their products and also who follows them on social media.
Step 4: Conduct primary research
Primary research involves collecting first-hand data from the target market through surveys, focus groups, interviews, and observation. Having a specific questionnaire and a focus group guide can be helpful in gathering useful insights. When conducting primary research it is paramount to ensure that the participants are genuine consumers of the product or service.
Step 5: Analyse and interpret the data
Once I complete research analysis, I organise, review and analyse the data to identify trends and patterns. This information helps me identify any areas of potential opportunity and also any potential challenges that I should anticipate along the way.
Step 6: Make recommendations
Based on the research findings, recommendations can be made to refine the product idea, adjust the target profile, improve pricing and set realistic goals for the product roll-out.
In conclusion, market research is essential to understanding and meeting a customer’s need. By following the above steps, we can obtain valuable insights into our target audience and competition, guiding us to make informed decisions about the product. With proper market research, you can set your product up for a successful launch!