Market research is a vital step in product development, as it helps you understand your customers, competitors, and industry trends. In this article, we will show you how to do market research for product development in the context of product planning, using a simple four-step process.
At the start of any market research project, it’s important to define your research goals. What do you hope to learn from your market research? How will it help you improve your product or strategy? Common research goals for product development include validating a product idea or concept, testing a prototype or feature, segmenting your target market and creating personas, assessing customer satisfaction and feedback, and monitoring competitors and industry trends.
- Understanding the total addressable market to evaluate the size of the opportunity - Better understanding of users and their pain points - Early validation on the ideas to iterate the product during ideation phase
The next step is to decide how you will collect and analyze your market data. There are two main types of research methods: quantitative and qualitative. Quantitative methods use numerical data and statistical analysis to measure and compare variables, such as surveys, polls, and analytics. Qualitative methods use non-numerical data and thematic analysis to explore and understand attitudes, behaviors, and motivations, such as interviews, focus groups, and observations.
Depending on your research goals, you may use one or both types of methods. For example, if you want to validate a product idea, you may use a survey to quantify the demand and a focus group to qualitatively explore the benefits and challenges.
The third step is to execute your research plan and gather your data. This involves designing your research instruments, such as survey questions or interview guides, recruiting and sampling your participants, and conducting your data collection. Depending on your research methods, you may use online tools, such as Google Forms, SurveyMonkey, or UserTesting, or offline methods, such as phone calls, in-person meetings, or field observations.
When conducting your research, make sure to follow ethical principles, such as informed consent, confidentiality, and respect for your participants. Also, ensure that your data is reliable and valid, meaning that it is consistent, accurate, and relevant to your research goals.
The final step is to interpret and communicate your research results. This involves organizing, cleaning, and coding your data, using descriptive and inferential statistics or thematic analysis, and identifying key insights and recommendations. You may use software tools, such as Excel, SPSS, or NVivo, to help you with your data analysis.
To report your findings, you may use different formats, such as charts, graphs, tables, or narratives, depending on your audience and purpose. You may also use visual aids, such as infographics, dashboards, or presentations, to make your findings more engaging and accessible. The main goal of your report is to answer your research questions and provide actionable insights for your product development.
Having relevant data first is tied to your goals, and methods you decided. Once you have findings, this is where communication comes in to your stakeholders to what your next steps are.