Market Research For Product Development
New is one of the biggest and strongest words in the marketing industry. It makes people see that something is going to be moving forward and brings hope that it will be different, modified or improved. The word new attracts people like a magnet that is why introducing new products regularly will get your company attention – the publicity is invaluable for a business.
Product Development Market Research
If you get the right marketing research agency and use market research in the correct way for product development research then, it will minimise the risk of failure for your company. It can also show that market research doesn’t have to show you clear-cut answers to be useful. Market research analysts are able to interpret the data and highlight opportunities.
Overplaying the word ‘new’ can be a risk within marketing because it’s frequently used for a lot of things:
- New products
- Old wine – new bottles
- New versions of old favourites
The main types of product development are:
- New concepts – an all over new product that has come from innovation by the company, sometimes creating a new market altogether.
- Additions to existing lines – a new product that is a new branch off the existing product from a company. For example, a technology company that is known for TV’s and only TV’s branching out and creating a new line of tablets or laptops.
- Modifications of the existing product – Existing products that a company has changed to make it better, giving improved performance and meets their customer’s needs.
Many companies have begun to turn to disciplined market research as a form of insurance for themselves. It reduces the business risk for the company.
What type of market research is required?
A market research agency will tell you that the new product research will require a mix of qualitative and quantitative research to get the best answers.
Qualitative research is a necessity because it helps to obtain such a deep understanding of issues such as requirements and needs. This allows for a lot more freedom in the exploring depending on respondents views and interest areas. The principal tools used in qualitative research are:
- Focus groups
- Depth Interviews
These allow the questioning and probing used to go further than just the subject.
Once needs are viewed and understood then you can be clear that a new product will have a market and the likelihood a product will be taken-up.
Quantitative research then takes over; meaning a relatively large number of structured interviews will be required to give a valid, robust result.