Do you have a new product that you want to add to your existing range? Or perhaps you are thinking about starting up in business and you want to know if there is a market for a particular product you are thinking of selling. It doesn’t matter if you have invented the product yourself or if you are selling other people’s products you are more likely to succeed if you have done some market research the among potential customers first to ensure there is a market for it.
Market research will
tell you if there is likely to be any demand for your product
tell you who your target market is, allowing you to target them more effectively
tell you how your products compare to similar competitor offerings and whether customers would potentially switch
Below are six steps to investigating a new product idea
You may not know exactly who they are and where they live but the more you can find out about your potential customers before you start the quicker and easier the rest of the research process is going to be. For example if you are thinking of importing dresses then at least you know that a good place to start is to target women. Market research will help you profile them, for example how old they are? Which shopping channels do they use etc.
Secondary research is a good way to find out who your target market could be. Try government websites such as the Bureau of Statistics, or report providers such as Ibis World
3. Develop your questionnaire
For each objective outlined above, develop two or three questions to ask customers that will give you the information you require. For example if you want to know who is most likely to buy the product you will require some demographic responses. We have our own questionnaire template that can help.
4. Gather your data
If you have a simple quantitative questionnaire you may be able to conduct interviews online. However, if you want to spend more time discussing a potential service and how it could be used you may prefer a face to face meeting.
5. Process your data and interpret your findings
This step is so much easier if you are using an online software provider such as Fluid Surveys. Even if you are not carrying out your research online it is handy to program your data, then all counting of individual responses is done for you.
When organising your data consider the following
Chart your responses so you can quickly identify trends.
When you find something then investigate further by using cross breaks and filters
Read all your comments in detail, to find out why people answered the way they did.
6. Make Decisions
It is always good to have your objectives in front of you when you are analysing your data in order to ensure you have answered all your questions. And keep in mind your goals.
Market research is a powerful tool to help you understand your target market; it is worth doing some research to before launching a new product or service to save yourself a lot of stress in the long run.