Market Research in Product Development

According to a recently released white paper by B2B International, about 90% of product research focuses on improvements to a product, such as ‘additions’ and ‘modifications’ rather than on an entirely new concept. And product improvements are more readily accepted over a brand new product, which can be more risky. The paper suggests using market research to minimize against the risk associated with any type of product development - sort of like a form of insurance.

The paper, Using Market Research For Product Development examines the role of market research at all four stages (below) in the product life cycle:

1. Pre-Birth – “Establishing Needs” Can help determine the need for a new product, provide insight into a market’s unmet need, and provide a temperature check for the current landscape.

2. Youth – “Stimulating Product Take-Up”Can guide all elements of the marketing mix, to better understand your current position, where you want your product to be, and how to get to that point.

3. Maturity – “Improving Product Performance” Can aid in determining optimal price points, market share and size, and interest towards the consumption of the product.

4. Old Age – “Determining The Future” Can be used to revitalize a product through modifications and additions which help stimulate the life cycle.

The paper’s author also emphasizes that product development research should always be incorporated into the entire customer value proposition – that understanding that improvements to packaging, delivery, and/or any aspect of service support, could have just as big an impact as changes to the product itself.

1 Comment

Tell Us What You Think
  1. If you haven't left a comment here before, you may need to be approved by CMA before your comment will appear. Until then, it won't appear on the entry.
    Thanks for waiting. View CMA's Blogging Policy.

Tags: Research