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.
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.
One of the main reasons businesses fail is because of no market need.
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.
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.
It quantifies business knowledge that is essential for the growth and development of any organization.
Around 20% of businesses fail in their first year.
Before you move on to any other step, answer these worrisome questions that might be lurking in your mind, like
To paint a clear picture of the importance of product research, here are some more points that will end your second thoughts.
To summarize, product research offers you the greatest professional benefit with which you can survive long-term in the global market.
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.
Here’s how the experts in the industry recommend you to research as an entrepreneur.
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.
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.
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.
Competitors are the biggest gurus of the market to learn from. Identify and categorize them as your direct and indirect competitors.
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.
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.
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.
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.
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.
You can also request their needs and demands related to your product so as to get a first-hand understanding of your customers’ mindset.
If you have an adequate budget, you can always hire a specialized team to conduct these surveys.
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.
Evolving with your market research will take you a long way towards running your business successfully.
Quoting what Steve Jobs said,
"It isn’t the customer’s job to know what they want," is enough to justify the importance of product research.
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.