Product life cycles are constantly changing, the period from which a product is introduced to the market to the time of decline has decreased immensely. Companies now must constantly come up with new products to fill in the gap. A great way to innovate business ideas is through conducting market research. A company will be able to identify gaps in consumer needs and create products that will also bring value to consumers. Here is a list of ways market research will aid your company in innovation:
Identify and develop potential new markets. Timely identification of issues with certain business aspects such as customer service or product placement. This can help companies overcome costly disruptions later.
Market Research aids marketers in understanding the audience’s needs, uncover emerging trends in the industry, properly assess the market in areas including product design/service offerings, business diversification.
Developing products calls for market research first to ensure the concept has value and then to refine the product over time. For example, you may see sales dropping on a flagship product and discover that customers’ needs have shifted, and this product should change or offer a new feature to be more useful or convenient.
Market research isn’t just an important step for new companies or companies launching new products. Conducting market research periodically can help you discover new opportunities to improve and grow. For example, you may discover:
New segments: You may come across new segments that, like your current customers, could benefit from your products or services. Perhaps they just don’t know about your brand yet, or they think your products are intended for someone else. This segment could be consumers of a different age, gender, income level, or geographical region, for example. A simple modification in your product or marketing strategy may be all it takes to unlock a whole new customer base.
Product improvements: Market research can reveal possible shortcomings in your product or services that, if remedied, would allow you to appeal to more customers and improve customer satisfaction. You may also discover opportunities for add-ons, product bundles, or other upsells that appeal to customers’ preferences and help you increase profits.