2 Questions to Consider Before Developing Your Product
Launching a product can be very financially risky, so it’s important that businesses conduct marketing research and environmental scanning prior to developing and releasing their product into the market. Market research and environmental scanning can help to determine if there is a need for the product, size of the market the product would be entering, market growth, who the competitors are in that market, what consumers would be willing to pay for the product, and much more. The information gathered will help businesses to answer the following two questions before developing a product:
- Does your product solve a problem?
Successful products create significant value for a consumer by solving a problem they
have. Some problems are easily recognized and some are discovered through environmental scanning. Either way, you have to make sure your product somehow solves a problem in order for it to have any value in the customer’s eyes. If your answer to this question is yes, then your focus should now be on how to communicate the value (solution) of this product to your target market. If you don’t communicate the value, it’s almost as if that value doesn’t exist. If your answer to this question is no, it’s time to go back to the drawing board and figure out how to turn your product into a great solution for a problem in the marketplace.
- What position will your product take in the market?
After you’ve done extensive market research, it’s time to make a decision on the position of your product. Positioning refers to how consumers view a product and what differentiates that product from the competition. Positioning is an extremely important part of the overall marketing strategy for a product and can also be one of the most challenging parts. One thing to always keep in mind is that a product cannot be everything to everyone, meaning your target market will not be every consumer.
With positioning, you first have to determine who you want your customer to be. From there, you have to decide how to differentiate your product in a way that your target market sees as significant/meaningful. Will your product be a lower price? Will your product be a higher quality? Will your product offer significantly different features than competitors?
Once you’ve found a way to differentiate your product, the next step is to come up with the best ways to communicate your product’s position to your target market. Your advertisements, sales locations, price, and all other aspects of your marketing strategy should reinforce the position you’ve chosen for your product.
These two questions are not the only questions you need to ask yourself before developing a product, but they are very important questions to answer in order to minimize the risk when developing and launching a new product.