How market research can help in building a product strategy
Understand consumer needs
An ideal product strategy must emphasize on the needs of customers in the target market. Market research plays an instrumental role in identifying and analyzing these needs. This knowledge allows for understanding the underlying customer preferences and the impact of the product strategy on the business. Products can then be customized to accurately meet the customers’ needs.
Identify market entry opportunities
Market research in product strategy can be used to evaluate the market entry prospects of a business. Whether a business is interested in markets with high growth rates, or a mature market that needs innovation to revitalize growth, research will help determine which market is a better fit. When entering a new market, it is vital to look beyond just market analysis and ascertain what the target consumers actually want. A market research study is one of the best ways to solve this challenge while developing a product strategy.
Understanding competitor offerings is essential for businesses to differentiate their products from their rivals. The ability to grab customers’ attention as quickly as possible determines how successfully a business can compete in the market. Furthermore, effectively communicating how the business’s products are different for the better gives an added competitive advantage. Using market research, brands can understand their top competitors in different product categories and also gain comprehensive insights on how concentrated the market is.