A bit of market research before you travel down the road too far can make all the difference to the end result. Market research is the action or activity of gathering information about consumers needs and preferences.
Why undertake Market Research?
The information gathered from market research helps us make wise and profitable business decisions. If we just take a guess instead of using hard facts it is hard to make informed decisions.
Establish a Need
You need to establish if there really is a need for your product. If there is something different or unique about your product, then it might stand a good chance at success. However, if it is the same as what is already available then there may be little demand. Also, you need to define your target market and decide who you think would buy this and figure out how to get to them.
Collect the Data
Once you have decided what you need to know and who you need to ask you are ready to collect some information. You might start with some desk research and have a look at what competitors are offering, check out the CSO for statistics for your target audience or spend some time searching online for relevant information. Then it will be time to start asking real people real questions. This can be done face to face or online, maybe using a tool like survey monkey.
Analyse the Data and Reach a Conclusion
Once you collect the information you then have to crunch the numbers. You should ensure you collect enough meaningful data so you will gain some real insights into the viability of your product. When you have all the information dissected it is time to make some decisions. You must use what you have learned, otherwise it was a waste to time and money. You might decide to go ahead and launch the product or maybe your data gives you an idea to change the product in some way to make it more attractive.
Use your research
Use the research that you have gathered to be a guide for the journey of your product. You may decide to repeat some market research after the launch to find out if further improvements or companion products should be introduced.
Too many businesses fail because somebody didn’t take the time to find out if the market wanted their product before they started to sell it. With a bit of effort and time spend at the early stages it will certainly pay off at the end.