How can you tell that your new product will appeal to the market?
To ultimately determine the success or failure of a product, the importance of good market research for a new product can never be taken for granted. While the product that a company introduces might be better than what is currently available, the market will never know unless deliberate efforts are made to make the buying public take notice. Good market research costs time and money. Take time to make your market research effective and not too exorbitant.
Instructions
Market Profiling
1. At the very beginning, it is important to profile your market. This basically means identifying who the customers of your product are, and to save time and marketing costs, who are not. Unless the target market is correctly identified, time and money will be wasted pursuing people who will not become customers.
2. Conduct market description surveys. These surveys provide information regarding the size of the market and forecasts on its growth potential. Additionally, the surveys identify a company's competitive positioning and at the very outset help the business managers plan for a product launch with a fair degree of confidence.
3. Carry out a conjoint analysis, the marketing research technique that allows business managers to find out what customers desire in a product. Before a product launch, it is important to identify the features of the product that are desired by the potential market, because every product has both positive and negative attributes. During a conjoint anaysis, customers are presented with a product and asked to identify the most preferred and the least preferred features. In addition to helping in product development, conjoint analysis also aids in the pricing of a product.
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