Why do you need to conduct market research before launching a new product?
If an enterprise is preparing to expand its product line, it is important to first assess the feasibility of such a step. “Blind” actions give little chance of successful promotion of new products or services. To obtain information that will allow you to make the right decision, you need to conduct a full-fledged study of available resources (natural, financial, labor, etc.), demand and the price situation, the potential niche of a new product and its sales prospects.
Marketing specialists build their work as follows:
- Determine the size of the market. This allows you to assess the real demand for the product at a particular point in time.
- Calculate the market share that a new product is able to win. This indicator most accurately reflects the prospects of the project.
- Analyze potential consumer audiences and key competitors.
Market research makes it possible to predict the payback period of a new product and its profitability. The study of consumers is the basis for the formation and adjustment of advertising and pricing policies, a chance to maximize customer loyalty to the product. An analysis of enterprises that already produce similar products, or satisfy similar needs, or those who may also enter the market with such a product in the near future, will prevent a deliberate loss in the competition and will allow you to show the maximum of individual advantages.
All this speaks in favor of a comprehensive and objective marketing research before launching a new product on the market. In fact, such work plays the role of a generator of success for him, because as a result, only sound ideas appear and strictly verified steps are taken.