To maintain their competitiveness within a particular sector, businesses frequently rely on market research for the production of innovative items. Even though the procedure can be difficult and time-consuming, new items and services enable businesses to expand and further increase their market share.
But thirty-three percent of new items fail on average and never reach the market. Investment in new product research is therefore essential. It guarantees that the time, money, and resources invested in introducing a novel product idea were worthwhile.
Why Perform Research and Product Development?
The production of any item requires conducting market research during the manufacturing phase. Owners are able to weigh the advantages and disadvantages of their product, which helps them identify opportunities for enhancements.
As a result, performing market research prior to, during, and after the product development procedure is essential for ensuring the effectiveness of an innovative idea.
The following are the key advantages of market research for novel product development:
Emphasizes the requirements, wants, and personal tastes of the consumer
- Elements that need modification
- Determines market demand
- Helps with pricing tactics
- Strategies for data-driven marketing
- Guarantees the completed product satisfies the consumer's needs
- Provides outstanding ROI
Different Approaches to Product Research
There are numerous methods of market research for developing new products. The selection of the research methodology for every stage is influenced by elements like:
- Timeline and Scope
- Kind of Product and Services
- Project Goal
- Audience Demographics
By considering this, the latest product research often combines quantitative methods (which yield results that are statistically accurate) and qualitative studies (which offer in-depth feedback).
Strategies for Quantitative Research in the Manufacturing of New Products
An online survey is frequently advised by market research firms as a method of collecting data for businesses trying to gauge the popularity of an innovative product idea. Online surveys can be easily completed on a mobile device and frequently delivered to the respondents through email.
This popular method of quantitative market research seeks to obtain the research's "big picture."
Advantages of Online Surveys
- They are really easy to gain access to. Online surveys are often provided through email or can be easily completed on a laptop, tablet, or mobile device by following the instructions.
- Rapid response. Whether they are B2B or B2C, online surveys may swiftly give feedback from the market companies are targeting.
- Inexpensive. Comparing this technique to other quantitative ones like a phone or mail survey will show how much more economical it is.
Working with a third-party research firm to conduct novel product demand surveys has extra advantages. To ensure that you get excellent responses so that you are able to make informed choices, their professionals will create new survey questionnaires according to the main goals.
Approaches for Qualitative Research in New Product Development
Even though there are several types of surveys that can be used by product manufacturers, market research firms frequently suggest focus groups as the best option. Focus groups are more beneficial while striving to discover an agreement on a specific item or service, compared to individual interviews or IDIs.
They are extremely helpful in developing questionnaires, understanding ideas, and forming opinions for your team. Pay attention to other businesses that focus on qualitative recruiting services if your firm decides to perform focus groups during product development research.
It will guarantee that the individuals taking part in the group discussion are extremely competent and targeted. Let’s discuss some of the advantages of the focus groups that are crucial for the product development process.
Gather various opinions at once
Surveys may have their own complications. Usually, organizations deliver questions to a large number of people and patiently await weeks for sufficient answers to come back.
But a focus group is usually made up of 4 to 12 individuals who have the greatest similarity to your target customer for the newly launched product or service. The attendees join a discussion that lasts 60 to 90 minutes and is moderated by someone who covers all the important topics right away.
Focus on specific consumer requirements and demands
Products and services must be updated frequently to meet the shifting demands and preferences of consumers.
Focus groups are an excellent approach for digging further into these dynamic requirements and determining what's important to the target market.
Examine resources more than quantitative data
Focus groups are analytical in style. They offer a very versatile and different approach to gathering customer data without employing a poll. Focus groups have the unique benefit of assisting your team in gaining insightful knowledge about the products or services that can be put to use.
Its objective is not always to get to any form of agreement or make a decision. Instead, the goal must be to define your concepts, feelings, and opinions around a specific subject.
Companies must decide wisely according to the actual market potential and consumer feedback to guarantee that the time and money committed to new product development are not wasted.
Team members receive these understandings via market research for new product development, which also directs every stage and design activities.
Raziya Kotadiya / LinkedIn
Research Analyst at Cognitive Market Research
With a demonstrated history of working in the market research covering qualitative and quantitative research. Skilled in Strategic Forecasting, Market Research, Competitive Intelligence, Business Development, Trend and Opportunity Analysis and Data Visualization.