subject: The Value Of Market Research In Product Development [print this page] Product development can be a risky businessProduct development can be a risky business. While there are some new products that make it big in the market, others get shelved while many wont even make it to production. By definition, the term product development refers to a broad field of endeavor dealing with the design, creation, and marketing of new products. But before a new product even gets to the design phase, market research must be performed in order to acquire feedback which could be critical to the products success.
Market research can also accurately define a products target market. While most product developers often have a particular target market in mind when turning ideas into products, market research can still turn up some surprising figures.
For example, a particular brand of perfume can originally be designed for a large female audience, but can also attract attention from male buyers. Market research can help determine how certain products will perform in different markets.
As important as market research is to the success of a product, it is also one of the most overlooked steps in product development. Only after sufficient market data has been gathered can the design process of any new product begin. The same principle even applies to manufacturing companies who outsource product development to third party contractors.
For companies who outsource product development, market research is a very important tool. Not only does market research determine whether a product fails or flourishes in a particular market, it also gathers important data that can help improve the product and make it more appealing to a larger audience. It can also gather data that may not be pertinent to the initial product, but critical to the development of other related products.
Because market research is a process which is part of but not dependent on product development, companies who have outsourced product development do not need to involve the third party contractor in the market research process. The company can perform the market research necessary to develop and improve the product, then pass the data that they have gathered onto the outsourcing third party contractor so that they can begin the product development process.
