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There are multiple reasons why businesses do Market research, and it is a wide topic to describe in one article. However, the current topic is to conduct it for a product. Why to do market research? Before getting into the topic we need to determine whether it is to understand what type of product to be developed? OR to understand the market for the product we have already decided to be developed? The clarity will drive into a right approach to do the market research.

To know market segment

Market segment is the group of people who can turn into potential customers. Understand the segment/group of customers who will buy the product, it will help us to describe what is the better fit for the identified set of customers. I would suggest getting into the shoes of a typical customer to understand the customer better. The better way of doing market research is gender based, location based, income based, age based and behavior based analysis which will determine whom to consider while planning, development and marketing of the product.

Understand existing problems

Why does the customer buy a product? Is it fulfilling a need or solving a problem? In order to create a good amount of market share, understanding Existing Problems will help us to either create a product different from other products or create a new product from scratch which should solve the existing problems. Eventually, we don’t need to invest many efforts and money to market the product as the product is the readymade solution. Consequently, analyze the existing problems should be part of the market research.

Competitive Analysis

Competitive analysis is another important parameter to consider for market research. Why to do competitive analysis? How does it help designing or marketing a product?

As I always say, life is a comparison as an individual whether you accept it or not, it is the fact. However, comparison should be as lower as possible to lead a happy life, how is it possible? The secret is your self-confidence and self-respect. These two qualities enable you to set your own direction and love what you do. Can we compare as low as possible as a business? My answer: It is applicable in a business too, let me explain.

Competitive analysis is the best parameter to understand the competitor but not to follow. You have to get into the shoes of a customer and do the analysis. Features and value for money are deciding factors to buy or not, so you have no luxury to ignore competitors and existing features. I would suggest putting your efforts to observe and understand but not to follow.

For instance, iPhone had the features of existing phones such as SMS, email, contacts, camera etc apart from these great features the TOUCH was introduced.

To estimate the market size

Market size is the set of people who are the potential buyers, they will be further divided into segments or groups to plan well. Number of customers visiting the store and their behavior are the key parameters which will help to manage the inventory with relevant items, brands in the store. Similarly, it is important to understand the market size to develop the product and plan the business further.

Understand customer behavior

Understanding customer behavior is vital to design a product. Multiple factors will play the role to decide customer behavior, location, age group, gender, price tag, features, income, level of education, quality offers & deals, brand value, marketing, online/offline and sales person. Consequently, it is another important factor in the market research.

Understand the eco system

I would advise to know the eco system which is ready to utilize the product to be built. The eco system consists of human resources, funding source, encouragement or subsidy from government, Experts/ advisers and consulting firms. The eco system helps to analyze, plan and develop the product in a better way.

Take Away:

1. Market research helps to determine why to develop the product.
2. Planning will become easy in all the stages of product life cycle.
3. What kind of product has the demand in the market?
4. How to produce a minimum viable product (MVP).

Recommended Article: How to crack deals and turn existing product as startup

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