There’s a lot that goes into market research. Doing it with an automated research program is a great way to go, but only if you’re ready. You don’t want to invest in researching a new product too early.
It can be awfully expensive! By asking these questions and using them to guide you as you develop your product, you can ensure you get the most out of a more in-depth market research program when the time comes.
Who Is the Target Market?
One of the very first things you should do as a business is defining your target market, but your work doesn’t stop once you have done that for your brand. It’s also important that you determine exactly who your target market is for new products you decide to release.
Start by considering your existing customer base and evaluate the target market of your competition. Then, create a few profiles of customers that represent your target market. Details of your ideal customers should include:
- Where they live
- Family status
- Cultural background
What Are the Latest Trends in This Market?
It is important to analyze the latest trends in the market. How you apply your findings will depend on your target demographic and the goals you have for your product.
For example, if you’re designing a new handbag, you will want to see what kinds of colors, styles, and sizes are popular. Based on that information, you can create a purse that matches the current trends.
You can also take things in the opposite direction. If your brand is known for innovative designs or setting new trends, you’ll want to take the information about what kinds of styles are popular right now and use them to come up with the next cool thing.
No matter which strategy you take for market research, time is of the essence. In today’s global economy where people spend much of their daily life online, you have to make sure you capitalize on trends while they are still current.
Can We Make It Work Online?
Speaking of the economy and the fact that many people spend a good chunk of their day online, you will also want to make sure you can make your product work online.
The pandemic has turbo-boosted online shopping, and those habits aren’t likely to go away any time soon. You have to make sure you can meet demand by selling your products effectively online.
That means you’ve got a lot more to do than simply create a product. You have to make sure you have quality photos and video taken of the product, you have to make sure you have a quality copy to accompany your product’s profile, and you have to make sure your website is set up for online commerce.
Then, you have to make sure it’s an item you can ship easily and affordably. After all of these considerations, you may discover you have to make tweaks to your product to make it work.
Is Value the Primary Selling Feature?
When some companies start designing a product, money is the very first consideration. That includes how much money it is going to cost to make the product, as well as how much they can expect to make when it starts selling.
These are important things to consider, but the value is always more important than price. It’s important to make sure that when you’re ready to promote and market the product, you can focus on what it provides before how much it costs. If the value is low and you’re focusing on affordability instead, you should start the design process over.
Can We Expand on This Concept Later?
When you design a new product, you want it to feel like you’re opening a new door. Your product should bring in new customers and money, but it should also provide your brand with new opportunities.
Consider whether you can expand on new concepts and potentially expand into new markets when you’re designing products. For example, if you’re creating comfortable dress pants, can the fabric you’re creating also be used to create other items of clothing, like jackets, that can also be uncomfortable?
Conducting market research is an exciting time for your company! It can be a lot of fun to dig into the details. Just make sure you take your time and answer these five questions. By answering them adequately, you can ensure you’re ready for more in-depth market research when the time comes.