For any business, the launch of a new product is one of the most significant days in their lifetime. A strong product can ultimately fail if it is not marketed properly to its target market.
Customer’s expectations and price sensitivity as well as the competitive landscape in which it will compete can greatly affect if the product is successful or has challenges in gaining traction after it is launched.
Conducting Market research enables a business to lower its levels of uncertainty by gaining greater insight into the customer through data-driven research, before the business makes significant decisions.
Businesses can use market research strategically to improve their product launches and give themselves a greater chance for long-term success. Here are five ways market research helps achieve a better product launch.
1. Validate Market Demand Early
Market research is critical to helping businesses understand their customers’ needs and desires. Businesses that do not perform market research will likely waste time and money on products that people will not want.
Business research tools such as surveys and focus groups let businesses receive feedback on the potential uses, characteristics, and viability of their products early on. Businesses have the chance to correct or change their product before spending money to develop them based on the feedback they receive from consumers.
2. Refine Product Features and Functionality
People prefer simple, relevant products instead of those having too many features or complications. Market Research is also used to help identify the most important attributes of products to the target market as well as what attributes or features a product may not have much “perceived” value.
By using usability tests and receiving customer feedback, companies are able to determine which functions of their products are more important to helping customers resolve their issues. Using market research services enables Product Development Teams to make data-driven decisions with respect to improving both usability, function, and satisfaction for their consumers.
3. Optimize Pricing Strategy
The Price of a product significantly influences that product’s success. A price that’s too high could delay a consumer’s purchasing decision, while a price that’s too low could cause the consumer to perceive the product as lacking value and, therefore, will not be able to produce the profits required to sustain a profitable business.
Through market research, businesses are able to find out about the pricing expectations, willingness-to-pay, and comparative value of their customers when evaluating competing products.
The insights gained through market research enable businesses to determine their pricing strategy in a manner that aligns with their customer’s perceived value, while providing a profit margin to the business.
4. Strengthen Product Messaging and Positioning
Even the best products don’t work if customers can’t clearly see their value. Businesses can use market research to identify what customers find appealing about a product, and the benefits of that product to emphasize in messages to customers.
Research driven insights will help define a company’s brand, define what information is used to define their products, and create websites and other marketing communications. With these insights, it will also clarify what is important to customers, and what they want to know about the product.
When products position themselves effectively in the marketplace, it will provide customers with a clearer understanding of how and why the product meets their needs, as well as how it differentiates itself from competing products.
5. Reduce Risk Through Pre-Launch Testing
The market research process allows you to test your product’s performance before bringing it to the market, including packaging, branding, distribution and promotion.
By conducting tests prior to launch, companies are able to identify and resolve any issues with their products early on in the product life cycle.
An objective third party that conducts market research will provide independent feedback, minimising your risk and enabling you to make more informed decisions when launching your product.
Final Thoughts
Successful product launches aren’t based on luck; they are based on data and research. Market research helps to confirm demand, identify features to keep and eliminate, determine the best price, and bring to life value using consumer preferences.
By using market research services during the entire product development and launch process, a company will be able to minimize risk and create a better experience when launching a new product into a competitive landscape.
