We live in an 80 / 20 world. In most major areas of economic life, it is a fact that 80 percent of the value is created by 20 percent of the participants. Most startups …Continue reading
Market Research and Product Development Are Not Always Related
Market development is one of the most important and fundamental activities undertaken by business owners and business managers, and unfortunately this activity is often neglected in the development of a business plan. Market research is not only a good way to understand the market, but it is also a great way to increase your business’s competitive pricing and to develop new business opportunities.
Most business owners and business managers think that by conducting market research, they will be able to increase their sales, but the problem is that the results are often misleading, as it makes the target market seems too big. On the other hand, if you have developed a product that meets your needs, and if your competitors do not have it, you could actually lose potential sales simply because they cannot meet your clients’ needs.
Market research is a way to discover how many of your potential clients would be able to buy a product or service from you, based on your target market. By going into details about your market’s needs, you can successfully build products that satisfy their needs. By developing these products, you can get the most out of your market research and thereby increase your competitiveness and market share.
While market research and product development are usually related, the two are different. When you conduct market research, you may ask your target market questions and gather demographic information about them, while market development has nothing to do with asking or gathering demographic information.
Marketing firms can help businesses develop new products by conducting market research and by providing solutions and advice to companies regarding their product development. They also help companies in planning and in implementing marketing strategies that can meet the market’s needs.
When conducting market research, a firm is looking at the potential consumers, their preferences, lifestyles, buying patterns, preferences, spending habits, and other factors that influence their buying decisions. Market research is used in many industries, including automotive, insurance, telecommunications, and banking, where product development is necessary.
In contrast, product development involves taking existing products and transforming them to meet customer needs. Product development can take place using research or by using user testing.
With market research, you look at what your target market wants and needs, and it is always difficult to come up with new ideas that will satisfy their needs. With product development, you develop products that will meet the market’s needs and satisfy the company’s goals.
But even after you have conducted market research, if you still feel that your company does not have the right products for the market, then you will need to do product development. For example, if you want to build an all-in-one software that will manage accounting transactions, you will need to develop this software, which will involve extensive market research.
In contrast, you may conduct market research and identify existing products that can meet your market’s needs. If this research shows that the existing products do not meet the market’s needs, then you need to develop new products that will meet these needs.
With market research, you can identify the current market trends that may become threats to your competitors, and therefore you can better identify new products and technologies that will make existing products more profitable. You can do market research and target market research to gather demographic information about your target market.
You can choose whether to conduct market research yourself or ask for assistance from experts. If you conduct market research yourself, then you may need to continue doing market research to identify your target market and the demand for your products and services.