Many business owners neglect the crucial step in product development-market research- for the sole reason that they don’t want to hear any negative feedback. They’re convinced their product or service is perfect just the way it is, and they don’t want to risk tampering with it.
Regardless of the reason, failing to do market research can amount to a death sentence for your product.
As a rule of thumb, market research should provide you with information about three critical areas:
Industry information
In researching the industry, look for the latest trends. Compare the statistics and growth in the industry. What areas of the industry appear to be expanding, and what areas are declining? Is the industry catering to new types of customers?
What technological developments are affecting the industry? How can you use them to your advantage? A thriving, stable industry is key; you don’t want to start a new business in a field that’s on the decline.
Consumer close-up
On the consumer side, your market research should begin with a market survey. A thorough market survey will help you make a reasonable sales forecast for your new business.
To do a market survey, you first need to determine the market limits or physical boundaries of the area to which your business sells.
Competition close-up
Examine the number of competitors on a local and, if relevant, national scale. Study their strategies and operations. Your analysis should supply a clear picture of potential threats, opportunities, and the weaknesses and strengths of the competition facing your new business.
[Original:entrepreneur]