Market research is a crucial component of product management that involves gathering and analyzing information about the overall market environment, prospective customers, and competitors for your product or service.
It helps product managers formulate a nuanced worldview of the opportunities and threats that exist for their offering, and understand customer needs and market trends to develop products that meet the needs and desires of the target user.
Here are some key points to keep in mind about market research in product management:
a. Types of Market Research
Primary research:
This is research that you conduct yourself or hire someone to do for you. It involves going directly to a source, usually customers and prospective customers in your target market, to ask questions and gather information.
Examples of primary research include interviews, surveys, questionnaires, focus groups, and visits to competitors' locations
Secondary research:
This type of research involves gathering information that has already been collected by others.
A lot of secondary research is available on the web, in magazines, journals, and industry publications
Qualitative research:
This type of research is exploratory and open-ended, where a problem or opportunity is defined and research is conducted to gain insights and understanding.
Examples of qualitative research include ethnography, social monitoring, and customer journey research
Quantitative research:
This type of research is numerical and statistical, where data is collected and analyzed to identify patterns and trends.
Examples of quantitative research include surveys and experiments
Customer research:
This type of research focuses on understanding the needs, preferences, and behaviors of customers.
It involves gathering information about customer satisfaction, loyalty, and retention
Competitor research:
This type of research involves gathering information about competitors, such as their products, services, pricing, and marketing strategies.
It helps companies understand their competitive landscape and identify opportunities for differentiation
Product research:
This type of research focuses on understanding the market for a specific product or service.
It involves gathering information about customer needs and preferences, as well as the features and benefits of competing products or services
b. Methods
Surveys:
Surveys are a popular method of product research that involves asking customers and potential customers questions about the product.
Surveys can be conducted online, in person, or over the phone
Customer interviews:
Customer interviews are one-on-one conversations with customers to gather feedback about the product.
These interviews can be conducted in person, over the phone, or online
Concept testing:
Concept testing involves presenting a product idea to potential customers to gauge their interest and gather feedback.
This can be done through surveys, focus groups, or one-on-one interviews
Focus groups:
Focus groups are small groups of people who are brought together to discuss the product.
The group is led by a moderator who asks questions and facilitates discussion
Usability testing:
Usability testing involves observing customers as they use the product to identify any usability issues or areas for improvement.
This can be done in person or remotely
Analytics:
Analytics involves analyzing data about how customers use the product, such as website traffic, click-through rates, and conversion rates.
This can be done using tools like Google Analytics
Observational research:
Observational research involves observing customers as they use the product to identify any issues or areas for improvement.
This can be done in person or remotely
The choice of method depends on the type of product, the target audience, and the research question. A combination of methods is often used to gather comprehensive insights and information about the product
c. Continuous Process
Market research is not a one-time endeavor.
It is something to continually invest in as markets are constantly shifting
Benefits of Market Research
Conducting market research can help to identify new opportunities for growth and improvement in business, discover unreached customer segments, and provide valuable insights to make informed decisions to enter the market with its product
Conclusion
Overall, market research is a critical component in the research and development (R&D) phase of a new product or service introduction.
It informs the final design of the product and determines how it will be positioned in the marketplace. To effectively utilize market research, it’s crucial to take action based on the information gathered.