How Can Entrepreneurs Perform Product Research? [Tips Inside]

A great idea isn’t enough for a successful business. A comprehensive market research about the product, industry, customers, and other parameters is required before you actually lay your business foundation.

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The steps of product research may seem like a simple act of exploring answers on the internet. But, that’s not how it works when you are in the initial phase of establishing your business. It’s the very seed of the business you are all set to grow big in the coming time. 

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One of the main reasons businesses fail is because of no market need.

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So, before we move on to get you acquainted with how you should do research right, we would like to walk you through its importance and impact.

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The importance of product research 

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As you pursue the most practical way to research your product, the chances of your product's success increase. It helps you understand the real needs and expectations of the customer, which you can then utilize in your product development.

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It quantifies business knowledge that is essential for the growth and development of any organization. 

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Around 20% of businesses fail in their first year.

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Start by answering these questions

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Before you move on to any other step, answer these worrisome questions that might be lurking in your mind, like

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1. Are there any similar products available in the market?
2. Will my product or service be successful in the market?
3. What are the best ways to manufacture and sell my product?
4. Is my product in competition with established brands?

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Research tips recommended by experts

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To paint a clear picture of the importance of product research, here are some more points that will end your second thoughts.

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• You can identify the key issues in the product development process and avoid making costly mistakes.

• You can explore the product reviews of your competitors' offerings to learn what your potential customers are looking for.

• If your product already exists in the market, through research will tell you whether the existing ones are able to meet the needs and expectations of the existing customers.

• It yields data that is crucial for each stage of the product management life cycle.

• You can avoid mistakes and risks associated with misguided ideas during conceptualization and market launch.

• It provides you with elevated expertise on the new innovative ideas with which you can put forward better products to your end consumers.

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To summarize, product research offers you the greatest professional benefit with which you can survive long-term in the global market.

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However, with big goals on your mind, the whole process may seem overwhelming with endless resources on hand. Most of these sources are very similar and carry very small pieces of something unique to offer. 

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Here’s how the experts in the industry recommend you to research as an entrepreneur.

Tips for product research 

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Be it a first-generation entrepreneur or someone from a business background, we are here to help you with some expert tips on how to research systematically for your business idea.

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1. Analyze the market research data

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Having bundles of data on your table related to your product research isn’t enough. You need to analyze them and devise business strategies to make the most out of them. 

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It will help you get noticed among your customers and deliver what is necessary for your business in order to get stabilized in the market.

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2. Identify and study your competition

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Competitors are the biggest gurus of the market to learn from. Identify and categorize them as your direct and indirect competitors.

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Insider Info: Direct competitors are the ones who sell the same product or service as yours. Indirect competitors are the ones that sell products and services similar to yours as a whole or as a part of their business.

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Analyze each one of them based on four crucial factors: product, price, place, and promotion. It will help you understand their products and prices better along with the promotional strategies they are leveraging to reach their target audience.

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3. Know your target audience

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Identify your target customers associated with your product or service. If you have a large customer base with people of varying ages, genders, and other demographics, categorizing them will help you in the long run. 

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It may seem like a cumbersome task, but this initial hard work will help you create a personalized marketing strategy for each group. You can also leverage various product research tools to ease the hustle.

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4. Dive into the market

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Step into the market to meet your potential customers and learn about their basic insights based on the products you sell. Try to find where your competitors have failed in the past and their expectations from your industry.

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You can also request their needs and demands related to your product so as to get a first-hand understanding of your customers’ mindset.

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If you have an adequate budget, you can always hire a specialized team to conduct these surveys.

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5. Observe and learn

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Product research is not limited to studying your competitors, target audience, market data, or other aspects. It is also about observing, analyzing, and learning from what you see and hear. 

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Evolving with your market research will take you a long way towards running your business successfully.

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Research: Do it the right way

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Quoting what Steve Jobs said,

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"It isn’t the customer’s job to know what they want," is enough to justify the importance of product research. 

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Now that you have a complete checklist of all the expert tips on how to research as an entrepreneur, get started right away to establish a successful business from scratch.