new product research definition

What is Product Research? Methods, Process, and Benefits

Product research does not just happen in the initial stages of product development. Well-seasoned product managers know that the process is continuous. Businesses that perform best conduct regular product research to stay ahead of customer needs, market trends, and the competition. 

This guide will help you to: 

✅ Understand what product research is ✅ Learn if your product team should invest time and resources in it (and why) ✅ Get to know different product research methods, and when best to use them ✅ Plan your product research step by step ✅ Master product research with some best real-life tips

Without proper product research, your chances of success, like your product decisions , will be random. Learn from the market and your customers to make data-driven and customer-centric decisions.

We’ll show you how 🙌

What is product research?

Product research is a process in which you gather, analyze, and interpret data to make strategic decisions about a product's or feature’s development, improvement, or market positioning. It is a crucial part of the design and development process, whether for a new product or adding features to an existing one. 

Product research helps evaluate market demand, analyze conditions and competition, and identify your target audience's needs, expectations, and pain points. The goal is to create products that meet user needs , reduce risks, and enhance user satisfaction. 

Product research is essential before and after a product launch to ensure continuous improvement and alignment with market trends and customer preferences.

Types of product research

Product research has different facets depending on which stage of development you are, and what kind of insights you need. They all have a lot in common, but the focus angle will be different. 🔦

🔬 Market research focuses on evaluating the market size, trends, competitive landscape, and customer demographics (within one market). It will help you assess whether your product has a chance to succeed on the intended market, identify opportunities, and optimize your overall product and marketing strategies.

🔬 Customer research aims to understand customers' needs, preferences, behaviors, and experiences. Only then can you create products that meet their expectations and solve their problems. 

🔬 User research studies how users interact with a product to make sure it is user-friendly and meets real user needs . Its main focus is to gather insights on user behaviors , needs, motivations, and pain points to improve user experience and product usability. 

🔬With product discovery , you want to identify and validate ideas for new products and features before development begins. The primary purpose is to minimize risks by validating assumptions and ensuring alignment with user needs and business goals. 

🔬 Continuous product discovery framework integrates into the daily workflow of product teams. Its main focus is to continuously gather insights from users to validate product assumptions, to ultimately build features that bring value for users but also align with business goals. 

🔬 Pricing research helps determine the optimal price for your product or service. It involves analyzing market demand, competition, and customer willingness to pay. The goal is to find a price threshold that maximizes revenue and meets market expectations at the same time.

Why do product teams need product research?

To some degree, all product teams need to have a well-established product research process. 

Depending on the scope (is it a completely new product, or are you developing new features?) and stage of development (are you assessing your chances in the market or already prototyping?), teams will perform different research activities. 

It’s never one size fits all, but it’s also an indisputable part of developing digital products.

To make informed decisions

The fundamental reason to do product research is to reduce the risks of failure. 

And even though you might have heard it countless times, you cannot overrate the power of data-driven decisions. Product research provides concrete data, forming a foundation for making them, from feature prioritization to design choices.

To identify the problem and validate product ideas

Product research will help you uncover what your customers need and desire, as well as the challenges they face. 

With a well-defined problem, it’s also easier to test and validate product ideas before you invest significant resources. This again reduces the risk of creating a product that misses the mark.

To gain a competitive edge

One integral element of product research is understanding your competition's offerings. Analyzing competitor products will help you identify opportunities for differentiation, making sure your product stands out in the crowded market.

Continuous market research will help you stay abreast of trends and evolving customer needs, ensuring that your product remains relevant.

Bonus: Customer-centric approach focused on user-centered design will also help you build a positive brand reputation.

To optimize product development

This one works two ways. First, by conducting thorough product research, you identify areas that need to be prioritized. It enables your teams to focus on aspects that resonate the most with users. 

Second, you save money. Product research gives you tangible arguments for allocating resources better, thus preventing costly development mistakes.

For continuous improvement

As the development of digital products never ends but continues through iterations, you need a trend baseline to make sure that your product evolves in the right direction. 

Bonus: Engaging directly with users during research helps develop empathy and improve retention, both of which are crucial for user-centric product development.

Product research methods

With the countless number of available product research methods, the most important part is choosing the right ones. Depending on when in the product development process you’d like to use them, the overall research goal, and the resources available, you might be using different combinations of primary and secondary research . 

Product surveys are a great way to learn how existing and potential customers feel about your product. 

These surveys can include questions about what consumers think of your product, such as:

• What frustrates them the most
• What the most needed improvements include
• What their favorite features are, and more.

You can also gain insights into how these aspects compare to your competitors’ products.

Product surveys can be sent via email or link , in-app , in-product , or displayed on your website . This is probably the most convenient, affordable, and effort-efficient way of gathering information to fuel your product research.

Another kind of survey that can prove useful is a quarterly NPS (Net Promoter Score) survey . The open follow-up question can be a great source of new product and feature ideas.

In-app feedback 

In-app feedback and in-product surveys are perfect for gathering real-time user feedback and addressing user issues promptly. They provide immediate user insights that add to your continuous improvement efforts.

With in-product surveys, you can easily stay on top of contextual feedback on existing or new features and recent updates.

Customer reviews 

Customer reviews provide unprompted feedback provided by users on various platforms, such as e-commerce sites, social media, and review websites.

They help understand user satisfaction, identify friction points , and gather actionable insights , but they are also an opportunity to build rapport with your audience. Never neglect them, and always be sure to reply.

Voice of Customer (VoC) analysis

You should collect Voice of Customer (VoC) feedback to understand user needs, preferences, and experiences. It is useful for gaining a comprehensive view of customer sentiments and identifying opportunities for improvement.

VoC analysis can be a helpful tool to inform product development and customer service strategies.

Importantly, you need consistency here, hence the systematic collection and analysis of feedback is essential.

Product analytics 

Product analysis based on internal analytics is a fundamental element of any digital product. With the user behavioral analytics relevant to your product, you must be on top of the key metrics such as product adoption, user retention , churn , or lifetime value.

Remember, you should adjust the choice of metrics to your goals and needs. Too many of them will just create unnecessary noise. You should also establish one source of truth and democratize access to your tools. 

User interviews 

User interviews are, by far, the best method to obtain in-depth user insights. They allow the flexibility to ask the best research questions that, in turn, provide rich, detailed data. The downside? User interviews require a lot of resources, including time and money. The key to using them to the fullest is sound interview recruitment.

For example, Medscape runs product research surveys inside the product in which they recruit users for interviews. 

We do it at Survicate, too. We also use Intercom conversations with customers to gather additional feedback and input on silent launches. Respondent attributes identify customers who would be good candidates for product testing .

Focus groups 

Start with finding focus groups of people who already use a product similar to the one you are thinking of developing. You can enquire about things like an optimal price , the most important features , and the features that are missing in their current solution.

This can Additionally, you’ll learn about the qualities of your product that will make it unique and outbid your competitors.

To eliminate bias , choose third-party interviews or online surveys .

Concept testing 

Concept testing is the process of surveying users about a potential product . You can learn how they feel about it and whether they would be willing to purchase it were it available on the market.

This method is very versatile, as it can be conducted online, over the phone, or through real-life interviews. It can be difficult to obtain a sample of potential clients willing to provide you with feedback, so we recommend using a customer feedback tool to facilitate the process.

A/B testing  

With A/B testing , you compare two versions of a product or feature to determine which one performs better. It’s useful for optimizing design and functionality based on user preferences and behaviors.

A/B testing is often used during the product development phase to refine features and improve user experience .

Usability testing  

After building an MVP , you need to show it to potential customers to get their feedback. 

Usability testing involves observing users as they interact with a product to identify any usability issues. This method is useful for understanding how intuitive and user-friendly a product is. Usability testing is often conducted during the design and development stages to ensure the product meets user expectations and is easy to use.

This method is usually used in the later stages of product development to get the final product validation .

When to perform product research

Product research takes place throughout the whole development process. From the initial idea to post-launch, each stage requires its own set of research activities. 

Before development

Discovery is probably the most important phase of product development when it comes to research. At this stage, you need to establish the fundamentals of the product. There are many questions you must answer to reduce risks before even thinking about the delivery phase:

🏮Who is it for? 🏮What problems will it solve? 🏮How is it different from the competition, and how does it position itself among similar products? 🏮Can you develop it? 🏮Will people buy it?

This is the time to research the market, define user personas , and get to know their problems, needs, and desires. When you find your niche and your target audience, you’ll have to decide how to position your product against the competition . 

🔬Useful research methods : surveys, user interviews, product analytics, market research, product discovery, continuous product discovery

🔧Toolset : Check our list of popular product research tools .

💡How Medscape uses surveys to complement continuous discovery ⤵️

By using surveys within a Continuous Discovery framework, Medscape's product teams have improved their product development through direct user feedback. Contextual surveys have been crucial in recruiting users for interviews and validating hypotheses, resulting in actionable insights.

READ THE WHOLE STORY

Prototyping

Once you have validated your product idea, you’ll move on to prototyping initial versions to capture any usability and UX issues early on.

At this point, you’ll probably already be conducting research to see how your target audience perceives the early iterations of the product (or feature). Gathering product feedback at this stage will help you design a roadmap .

🔬Useful research methods: UX surveys, user interviews, product analytics, concept testing, focus groups, usability testing, A/B testing

🔧Toolset: Check our list of popular UX research tools .

Beta testing

After finding the sweet spot in accommodating user needs, functionality, usability, and your business goals, you’ll end up with a beta version of your product, something really ready to be tested in and out with a wider group of users. 

This will help you understand how customers perceive your product or its new iterations, what they like and don’t like, and how you can still improve on it.

💡How Intergiro speeds up feature validation ⤵️

Intergiro's product team employed in-app surveys to validate new features and gather user insights during the product validation process. They periodically deployed surveys in various parts of their product to obtain precise feedback on specific elements.

🔬Useful research methods: in-product and in-app surveys, user interviews, product analytics, focus groups, usability testing, A/B testing

Post-launch

So you’ve launched the product , but the research journey doesn’t end here—it is a continuous commitment. Make sure you collect relevant customer engagement metrics .

After launch, product research should focus on checking if the entire digital journey provides an engaging product experience . This is the time to evaluate if you have nailed your product’s positioning , product-market fit, and pricing.

💡How Landing measures its product-market fit (and more) ⤵️

Landing utilized Survicate's product-market fit survey to consistently assess how well their platform meets user needs and expectations. This survey serves as a health check for Landing's value proposition, offering qualitative feedback that is analyzed and converted into new roadmap items.

💡How hitta.se improves on its customer journey ⤵️

With NPS and CSAT surveys, Hitta.se identified areas for improvement in their customer journey. By leveraging the customer feedback they collected, they were able to make data-driven decisions and implement tangible changes, resulting in a 35% improvement in NPS.

🔬Useful research methods : user reviews, product analytics, user interviews, surveys: NPS , CSAT , CES , product-market-fit  

🔧Toolset: Check our list of popular product feedback tools and conversion optimization tools .

How to conduct product research?

It’s time to look more closely at the very product research process. You already know it’s essential for developing a successful product. But where should you start? Let’s go through the best practices step by step.

Step 1: Define research objectives

Clearly outline what you aim to achieve with your research. This could include identifying market gaps, understanding user needs, validating product ideas, or improving an existing product. 

Step 2: Identify your target audience

Knowing your audience is crucial. Define who’s your target while creating the product by understanding their demographics, needs, and behaviors. 

Don’t forget to create detailed user persona profiles including their usage patterns, preferences, and decision-making processes.

It could look like this template ⤵️

You can collect this information upon signup, but you can also gather this data with a user persona survey distributing it, for example, directly in-product or via email.

Step 3: Choose research methods

Select the appropriate mix of quantitative and qualitative methods , and make use of existing data through secondary research.

📈Quantitative methods : surveys, data analysis, metrics

📝 Qualitative methods : surveys, interviews, focus groups, user observations, online reviews

📚 Secondary research : existing reports, competitor data, trend analysis

Step 4: Conduct the product research

Now it’s time to put it all into action and implement your chosen methods. Collect data accurately, ensuring objectivity throughout the process. 

Step 5: Analyze data and draw insights

Analyzing the collected data to identify key patterns and trends is, traditionally, the most laborious part of the process. While drawing conclusions from quantitative data may be quite fast with the right tools and a wise metric choice, analyzing qualitative feedback is a different story. 

To use your qualitative data to the fullest, use a customer feedback analytics tool, such as Insights Hub . It will dramatically cut down the time from raw feedback to contextual insights based on what your users are saying about the product in any feedback source you connect to this tool.

🔦 Identify patterns and trends with quantitative data : Look for recurring themes and statistical trends.

Categorize qualitative feedback and draw actionable conclusions : Link findings directly to product improvements, prioritize changes based on user needs and develop product strategies to address identified challenges.

Step 6: Validate ideas with users

Test your ideas and solutions with existing customers and potential users. Remember to identify key user types before recruiting test participants. 

⚖️ Test ideas : Use interviews, focus groups, surveys, and usability tests to gather feedback.

🙊 Account for bias : One way to combat confirmation bias and false-posititve responses is to alway focus on asking about a behavior in a certain context . As Teresa Torres puts it:

“Instead of asking, What criteria do you use when purchasing a pair of jeans? —a direct question that encourages our participant to speculate about their behavior—we want to ask, Tell me about the last time you purchased a pair of jeans. ” [...] It will reflect their actual behavior, not their perceived behavior.

Step 7: Develop and test your MVP

Developing a Minimum Viable Product (MVP) is a result of creating multiple prototypes based on validated ideas and tests to improve subsequent iterations.

⚗️User tests : Use tree testing, card sorting, A/B tests, and heatmaps to confirm usability and functionality

🙌Quality assurance : Conduct QA testing, regression testing, and performance testing.

Step 8: Continue research post-launch

Even after the product launch, continue to gather data and user feedback to weed out bugs and refine the product.

• Gather data : Use user responses to adapt the product before a full rollout.
• Ongoing research : Stay connected with users and regularly analyze market trends and tech changes. 

💡How GetResponse uses online surveys for ongoing product research ⤵️

GetResponse runs over 320 ongoing surveys across their free, paying, and enterprise business units, gathering an average of more than 3,000 responses per month. Its Product teams use surveys to validate features, research personas, as automated in-product surveys to gauge satisfaction along the customer journey, as well as ad-hoc product research activities.

Run product research with Survicate

We're sure this guide have given you a plenty of actionable advice of how to approach your product research projects. Now, to take them to the next level, you might need a reliable software that will give you a good look on what your users need, and what to prioritize in following sprints.

So, why not consider Survicate for the job. With our flexible plans , you can easily grow into the tool that offers plenty of survey types, advanced targeting, and AI-powered insights categorization. You can also test-drive our Research Assistant, a conversational AI tool that will answer all your questions related to your feedback gathered from multiple sources.

Try us now and sign up for a 10-day free trial of our Best plan with all the features and integrations included.

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Product Research: Definition, Importance, and Stages

Product research is a crucial step in creating successful products that meet customer needs and stand out in the market. It helps companies determine what their customers want and need as well as how to create unique items. By thoroughly understanding what customers want, analyzing market trends, and evaluating competitors, businesses can make informed decisions about product development and marketing strategies.

This study is helpful at every stage, from ideation to evaluating a product's performance following launch. This article will discuss the value of product research, its several phases, and some best practices for conducting it.

Table of Content

What is Product Research?

Importance of product research.

• Why and How do different Product Teams do different types of Product Research?

Why does Product Research matter for Product Teams?

When to perform product research, product research stages.

• Choosing a product research methodology

Elements of Successful Product Research

How to measure the success of your product research.

• Conclusion: Product Research
• FAQs: Product Research

Product research in product management is a type of marketing research that gathers data on the features and attributes that potential buyers are hoping to see in a product, primarily before the product's release and availability. Product research enables businesses to learn what their customers want, enabling them to customize their offerings to meet their demands. Both fresh product concepts and already-available items can be improved with the use of this study.

Product research is a crucial step in the creation of new products and can be done at various phases of the process. Product research assists a company in producing goods that consumers want. Gaining a competitive edge and a dominant position in the market is facilitated by this.

A thoroughly thought-out product will far more effectively satisfy the needs of the buyer. When releasing a product in a market with several competitors, product research becomes even more crucial. Gaining insight into the features and traits that customers value can be quite helpful in developing a solution that addresses problems with competing offerings.

How do different Product Teams do different types of Product Research?

Even the most creative idea runs the danger of failing if you don't know what your customers want from your product. You may better connect your product concepts with customer needs by conducting product research.

• Recognise consumer demands and pain spots. Your product should address the most important problems that customers are facing, but how can it do so if you don't know what those problems are? Product research aids in the collection of information and behavioural insights that you need to comprehend user problems and develop the necessary solutions.
• Align user demands with business objectives: Developing a product roadmap that benefits both users and your business requires an awareness of consumers' needs and how they relate to your product and business objectives
• Greater room for accuracy and innovation: You can create products that your clients will enjoy and find creative solutions to their challenges when you know exactly what they need.
• Obtain a competitive advantage by studying your rivals. This will help you determine what features to develop and how to set your product apart from the competition.
• Prioritisation made simpler and more effective: With product research, your team as a whole knows exactly how to rank efforts in order to satisfy customers, which makes managing your product backlog easier.
• Align user demands with business objectives: Developing a product roadmap that benefits both users and your business requires an awareness of consumers' needs and how they relate to your product and business objectives.

According to our 2023 Continuous Product Discovery Report, most teams conduct research at problem discovery (59%) and problem validation (57%), with only 36% researching post-launch.

The consensus is that product teams don’t think that’s enough—78% think they could research more often: which means there’s a big opportunity for you to implement regular research at all stages of the product research process.

Here’s when to conduct a product research

• Formulating a hypothesis at the problem discovery stage, based on user insights
• In the process of validating your idea through problems
• In the process of developing concepts and coming up with solutions, assess your progress.
• While you're sorting through many concepts to determine which ones your users appreciate most,
• Early wireframes should be tested during solution definition and after you have your first design.
• Following the creation of a prototype, evaluate its direction and usefulness.
• Examine modifications made to earlier prototypes during validation and testing.
• Following development and launch to gather input and organise your next moves
• Prior to releasing a new feature or optimising a product, find out what people think.

The process of conducting product research involves several stages:

1. Prior to Research Launch

Product research can be used in the early phases to find and evaluate fresh concepts. By eliminating product development expenses in the ideas that are dismissed, this testing will contribute to cost reduction.

Product research can assist businesses in later phases of product development by determining which features should be kept and which ones can be dropped.

2. Evaluation and Input

Customers are also tested on a recently developed product to find out what has to be changed, such as the packaging. Research requires a great deal of testing. Even with thorough research, a poorly tested product may still not work out. Testing can be conducted internally or with real clients through trials, offers, small groups, etc.

3. Soft Launch Research

Before being introduced to the target audiences, the majority of the items undergo a soft launch. The purpose of the soft launch is to get input from prospective consumers and make beneficial adjustments to the product. Small groups or regions are the target of test marketing, and the results are verified. A product may need to be reevaluated and put through another round of study if the soft launch is unsuccessful.

4. Research After Launch

The product is released onto the market after everything is finished. Even though test marketing is carried out, outcomes may alter when it is introduced to a wider audience. Therefore, it is crucial to observe and comprehend how customers behave and react to the recently released product or its variety. Following the product's debut, customer satisfaction is evaluated. The most often utilised methods in product research are surveys, interviews, and focus groups. The product's next steps can be planned based on this feedback.

Choosing a product research methodology:

Product development and research involve some work. You can conduct two different kinds of study, and each has advantages.

Primary research

• Secondary research

Primary research is the initial kind of product research; it involves your organization gathering information directly from potential consumers. Research falls into two categories: qualitative and quantitative research.

• Qualitative research: Investigating the features of the product is made easier with the use of qualitative research . Asking questions about a customer's motives and behaviors can help you understand why they utilize a product. You can use some kind of focus group or perform an open-ended product research poll to do this.
• quantitative research: Statistics from online surveys, polls, and other data are used in quantitative research since they help determine how well consumers would like a product. Statistics and numerical results will show how much or how little they like the product.

Secondary Research

It is secondary research that yields information on buyer groups. Public resources, such as the Bureau of Labour Statistics or private research papers, can aid in your understanding of your industry. Additionally, your business might have useful internal data from marketing, finance, or accounting that can be used to better understand your target market's preferences for certain items. When you polish your product ideas into something that consumers will actually want to buy, primary and secondary research will provide you with insights that will save you time and money.

Product research is essential to prevent poor decisions being made throughout the development process, to spot possible problems with your product, and to gain a comprehensive understanding of your target market. You may develop a well-thought-out plan for developing a product that customers will adore with the aid of this research.

However, in order for your research to be successful, you must take the following proactive measures:

1. Employ impartial and precise data collection techniques

The main goal of Product research is to find out exactly how your target market uses your product, including their likes, dislikes, needs, wants, and any problems they face. To make sure your research is useful and actionable, you need to use reliable data collection methods . Customer interviews, surveys, and tools like Hotjar that provide real-time insights are great ways to gather unbiased and accurate information. With dependable data, you can make customer-focused decisions and create the best product possible.

2. Perform in-depth comparative and competitive analysis

Product research is crucial not only for understanding your customers but also for knowing your competitors and your market position. Analyze your competitors' products, target market, and operations to see what works for your audience, identify gaps in your offering, and find ways to improve your product. Comparative analysis helps you see what features your competitors have that you don't. This highlights your weaknesses and helps you create a strategy to improve performance and customer satisfaction.

3. Utilise already published study findings

Trade and market studies from industry organizations provide valuable insights into how companies have improved their products and how consumer patterns have changed. These reports offer a historical perspective that complements your own research, helping you find new product opportunities by learning from past successes and failures. For example, you might discover new ways to get customer feedback or efficiently test product features. Historical data can inspire these new approaches.

4. Divide results according to corporate objectives

If you can't use the results of your product research to improve your product and make better judgements, it's useless. Now for segmentation: grouping your study results according to company objectives helps to ensure that data is not mistranslated or lost. In order to help the members of the product team make informed decisions, you can also record your findings. Moreover, segmentation can assist you in coordinating your immediate and long-term objectives to increase the research's future value.

It might be difficult to determine the efficacy of your research approach at the outset, as concrete product results are only apparent after you have received feedback on the final product.

Adding Key Performance Indicators (KPIs) to your product at the outset will help you understand how research is being used to benefit your consumers and business.

Product research is essential for creating solutions that meet customer needs effectively. It involves understanding market trends, industry norms, and competition at various stages of growth. By collecting reliable data, conducting thorough competitive analysis, and leveraging past research, businesses can gain a competitive edge, ensure sustainable profitability, and align their products with customer demands. Continuous research throughout the development process helps organizations remain adaptable to market changes and develop products that resonate with their target audience

Product Research- FAQs

What is a product research.

Product research is a type of marketing research that gathers data on the features and attributes that potential buyers are hoping to see in a product, primarily before the product's release and availability.

What stages does product research go through?

In product research, theories are developed during problem discovery, concepts are validated through issues, concept development progress is monitored, early wireframes are tested, prototypes are assessed, and post-launch assessments are carried out.

What is a tool for product research?

In order to support well-informed decision-making in product creation, a product research tool is a tool or piece of software that helps collect and analyse data about consumer preferences, market trends, and competitive environments.

Which four categories of new product research exist?

The pre-launch research, customer evaluation and input, soft launch research prior to wide distribution, and post-launch research to collect customer feedback are the four categories of new product research.

What benefits can product research offer?

Product research has several benefits, such as averting bad choices during development, seeing possible problems, getting a thorough grasp of the target market, coordinating user needs with corporate goals, and eventually producing goods that satisfy consumers and differentiate themselves in the market.

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Product research: the key to building a product people will love

You want to build a long-term vision for your product, and work on something that your users will buy and love—but can you really do that if you don’t understand your customers?

Probably not.

Enter product research, the key to leading your business to success through data-backed insights and smart, customer-centric product decisions.

But how can you make sure your product research is effective, and that it will benefit your customers and business? Keep reading to find out!

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Product research: what it is and why it matters

Product research is a vital first step before introducing new features, a new product, or entering a different stage of the product lifecycle. It enhances your understanding of what the customer wants so you can make user-led product decisions and address customer needs.

What is product research? 

Product research is the process of gathering information about your product's purpose, development direction, and which solutions you should offer to create customer delight. Product research is conducted through surveying and studying users to identify their needs and understand what they demand from your product, and usually happens at these stages in the product lifecycle:

Before launch : to understand which initiatives you should include and prioritize based on customer needs, and to develop a product-market fit.

Testing and feedback: to understand how the customer perceives new iterations, learn what they like or don’t like, and how you can improve the product to delight them.

Soft launch: to analyze how effective and useful your Minimum Viable Product (MVP) is among a segment of customers, and identify changes to make before releasing the full product to market.

Post-launch: to study customers' reactions and behavior after launch for continuous discovery , analyze customer satisfaction, and identify potential bugs or improvement areas.

Why product research matters for product teams

If you don't know what your customers want from your product, even your most brilliant idea risks failure. Here's how product research helps you align your product ideas with customer needs:

Understand user needs and pain points: your product needs to solve the customer's most pressing issues, but how can it do that if you don't know what issues they’re having? Product research helps you gather data and behavioral insights to understand your users’ problems and build the solutions they need.

Align user needs with business goals: understanding customers' needs and how they align with your product and business goals helps you plan a product roadmap that'll serve both the users and your company.

Higher scope for innovation and accuracy: when you have clarity about what your customers need, you can find innovative ways to solve their problems and build a product they'll love.

Gain a competitive edge: researching your competitors will help you understand how to differentiate your product and uncover gaps in the market, which can help you decide what features to build.

Simpler and more impactful prioritization: with product research, your entire team is clear on how to prioritize initiatives to achieve customer delight , making it easier for you to manage your product backlog .

Why and how product research can vary across product teams 

Product research validates your ideas and gives you a better understanding of your user throughout the product development process. But the responsibility to conduct product research doesn’t fall solely on the product manager— people across departments should also be conducting product research.  

Since product research isn't a single, standard process, the purpose and level of contribution can vary at different stages of the product lifecycle and across roles and departments:

1. Product managers

A product manager's primary goals are to understand user needs, learn business goals, and determine market requirements to create a product vision and roadmap. 

They also use product analytics to validate ideas around iterations and product features—all of which require extensive product research. 

A product manager’s main research aims are to ensure that product development decisions are data-informed and customer-centric, and address users' needs to build a great product. 

Common research methods include interviews, surveys, competitor studies, and analyzing user behavior and product experience insights.

2. Product designers

Product designers need to empathize with users to create an intuitive product experience that users will enjoy. 

During product research, designers might observe customers in real-time to note their reactions, responses, and behaviors around different elements of the product's design. For example, they might observe how users interact with the UI to identify product elements or features that seem to slow down or confuse individual users.  

Product designers use these insights to improve the user experience ( UX ) and create a seamless product experience ( PX ) for easy navigation and usage. 

Their research methods include customer feedback forms and behavior tools (like heatmaps and session recordings) to understand where users are facing issues and how design changes can fix them.

3. Researchers

Researchers study user behavior, needs, and motivations to translate insights into new and better product opportunities and better-informed product decisions. 

Researchers constantly conduct product research to monitor trends over time and see how user behavior patterns are changing in response to product iterations—and how to improve them.

But, here’s the catch: this data is not readily available. So, researchers use a combination of quantitative and qualitative research methods like surveys, feedback forms, and customer interviews to get recurring data.

4. Product research by lifecycle stage

Product research processes, methods, and findings will change as your product reaches new stages of development:

If you're developing new features for an existing product , you want to understand the customer's current needs, how they've changed over time, and their reaction to recent iterations. This helps you understand which initiatives and ideas you should prioritize and introduce next.

When you're developing a completely new product, product research will be different. Here you don't have historical information about user response and behavior patterns from your previous developments, so you need to perform in-depth product research to understand your target customer's needs and pain points.

4 elements of successful product research

Product research is necessary to avoid misguided product development decisions, identify potential issues with your product, and get an in-depth insight into your customer's mind. This research helps you create a well-thought-out strategy for building a product customers love.

But you need to take some proactive steps to make your research successful:

1. Use accurate and unbiased data collection methods

The primary goal of your research is to collect accurate data that tells you about how your customers experience your product—what they like or don't like, what they want or need, and what issues they encounter.

But your research won't be useful or actionable if you use unreliable data collection methods .

The best way to ensure the data you collect is accurate and unbiased is to use reliable methods like surveys, customer interviews , and tools that provide consistent real-time product experience insights (like Hotjar!). 

Only with accurate data can you be confident in making truly customer-centric decisions to build the best product.

Pro tip: use Hotjar Heatmaps and Session Recordings to study customers' behavior patterns on your site. These tools give you an unbiased look at how your customers scroll, click, move, and navigate your website, which can help you identify potential issues and improvement areas.

For example, if you use heatmaps and notice that users aren’t scrolling down your home screen to where you’ve included testimonials and product use-cases, you can use this information in your research to place them further up the page.

2. Conduct thorough competitive and comparative analysis

Product research isn't just relevant for studying customers and their needs—it's also key to understanding your competitors and where you stand in the market. 

Conduct a thorough analysis of your competitors' products, audience, and processes. This will help you analyze what's working for your audience, what gaps you can fill, and how to create a better, more efficient product for your customers.

You can complement your research efforts by carrying comparative analysis of what you're missing out on. Study your competitors and identify which features they’re providing that you’re not and what makes them unique. This will tell you where you’re lacking and help you create an optimization plan for better results and customer satisfaction.

For example, if you understand how your competitors are launching features—and how their customers are responding to them—you can use those insights to develop and introduce your next feature, and build a better product that delights your customers and stands apart from the crowd.

3. Leverage existing research material

Marketplace and trade reports—analysis reports by institutions and organizations in your industry—give you valuable insight into product processes used by companies over the years and indicate how consumer trends have changed.

This goes beyond your first-hand information and adds a historical touch to your research, so you can discover new product opportunities by taking inspiration from what’s worked before (or learn from what hasn't).

For example, you may come across an innovative way to collect customer feedback or an efficient way to test product features that might not have crossed your mind. You can explore this idea with the help of historical data.

4. Segment results based on business goals

Your product research is irrelevant if you can’t use it to make more effective decisions and product improvements. 

Enter segmentation, which is when you categorize your research findings based on business goals, so information doesn't get mixed up or lost in translation. You can also document your findings so product team members can refer to them from time to time for guided decisions.

Segmentation can also help you align your short-term and long-term goals to make the research more valuable for use in the future.

For example, you may want to study your customers' major pain points around a specific feature, at first—but later, when you're introducing a suite of new products, you might want to look at the issues your previous product didn’t solve, potential initiatives that can complement your new products, or gaps in your past marketing strategy. This will help you better address these areas for your new product.

How to measure the success of your product research

Measuring the success of your product research isn't exactly straightforward: tangible product results come much later when you receive feedback for the product, so it’s challenging to gauge the effectiveness of your research process in the beginning.

You can get some clarity around how research is translating into benefits for your users and business by attaching Key Performance Indicators (KPIs) to your product during the initial stages.

It's important to know what success means to you before starting product research. Be clear on the question you are trying to answer first.

Much like a scientific experiment, you should identify the aims and objectives and develop a hypothesis to test. Design your research methodology around the hypothesis.

You might choose a survey, a literature review, or something else. The results, once analyzed, should illustrate a statistical significance in your findings to prove or disprove your hypothesis—a true measure of research success.

Here's a list of questions you should answer to determine the success of your product research:

Do you understand the major triggers and pain points of your customer?

Have you analyzed your products in comparison to competitors and identified gaps?

Have you converted your research into data points and findings?

Have you used the research report to introduce modifications in your product roadmap or created a new one from scratch?

Did this research give you a good idea of what the customer wants from your product?

Do you understand which initiatives you need to prioritize?

How you answer these questions will tell you whether you have sufficient information or need to change your product research strategy and collect additional data.

Ultimately though, the best measure of product research success is the knowledge you gain about your customers—and how you use that knowledge to build a product they'll love.

3 ways Hotjar can assist your product research for better results and efficiency

1. use recordings and heatmaps after releasing features to get user behavior insights.

One of the most direct ways to get feedback and insights about your customers' needs, pain points, and responses to product features is to understand their behavior in context as they experience your product.

Heatmaps give you insight into the elements of your page that drive the most clicks and conversions while highlighting things you can optimize for better results. These findings can be used in your research to identify potential areas for improvement.

Session Recordings give you a play-by-play of individual user activity in your product to show you their navigation path, mouse scrolls, and clicks. Real-time behavior patterns tell you what the customer is struggling with presently , so you can improve product design, navigation, and experience.

2. Leverage surveys to get validation and feedback

If you want to know exactly what your customers are thinking and let voice of the customer (VoC) data guide your product strategy, use qualitative tools like Hotjar's Incoming Feedback widget and Surveys.

Try placing surveys and feedback widgets on high-traffic visitor points of your product to get direct, unbiased, and genuine feedback from the customer at the best time: when they’re experiencing your site. This helps you understand user needs more intuitively so you can validate ideas and features.

3. Use Hotjar integrations to prioritize features and get buy-in for ideas

Product research is a comprehensive process, and it’s challenging to do it regularly. However, the process becomes more efficient when stakeholders and team members have access to customer feedback as soon as it’s available.

Hotjar integrates with tools like Slack and Zapier to help you seamlessly communicate with stakeholders and get buy-in for your ideas then and there, so you can move forward with your product improvements.

Final thoughts

Product research lies at the very core of product management. If research isn't conducted throughout the entire development process, you risk misalignment and a resulting product that doesn't meet users' needs.

You need to understand what users need right now to build a truly user-centric product—and product research can help you achieve just that.

Use Hotjar's qualitative and quantitative product insights tools to organize your product research efforts and really understand how your customers experience your product.

FAQs about product research

What’s the difference between product research and market research.

The primary difference is that product research involves studying the product (customer needs, feedback, pain points, issues) while market research involves analyzing the market (competitors, consumers, demand).

How do you conduct product research?

Define your product and its vision

Identify your target customer

Understand your customer's needs and pain points

Conduct research using qualitative and quantitative methods

Convert the research into data findings and insights

Use the analysis to guide your product strategy

How can using product research tools help?

Product research tools help you identify consumer trends, study user patterns, and analyze user behavior for data collection. Some useful product research tools are Hotjar, Zendesk, Product Plan, Jira, and ProductBoard.

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Research and Development (R&D) vs. Product Development

What Is Research and Development (R&D)?

Research and development is the practice or business unit involved with developing or enhancing new products and services. Often in research and development, companies or governments conceptualize new products. The research portion occurs when a company's R&D team tests the viability of a potential product. This is the act of discovering new sciences that can be used to create new products. The development portion comes after the research and is the act of turning the discovered science into a useful product that the company can market and sell.

Companies invest in research and development when their product lines become outdated, to gain or maintain a competitive edge, or when competitors create similar or superior products. Research and development is vital for the sustained growth and success of a company.

Research and development activities can differ among companies within an industry and across different industries, and they can be assigned in-house or to contracted third-parties. Many companies contain their R&D responsibilities in-house to protect intellectual property.

What Is Product Development?

On the other hand, product development is the entire process of researching, designing, creating, testing , marketing, and selling new products. Research and development is essentially the first step in developing a new product, but product development is not exclusively research and development. It is the entire product life cycle , from conception to sale.

Product development is also not exclusive to designing, implementing, and selling new products. Existing products can go through product development to revamp old features or add new features so the product sells better or adds greater value to consumers. Any time a new product is created and sold—or any time an existing product has added features and is resold—it is going through product development.

Research and Development vs. Product Development

The difference between research and development and product development is that research and development is the conception phase in the product life cycle , while product development is the entire process of designing, creating, and marketing new products or existing products with new features.

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Home » What Is Product Research? Definition & Process

What Is Product Research? Definition & Process

July 31, 2023 max 7min read.

This article contains,

What Is Product Research?

The dynamics of product research across product teams, how to do product research, the importance of data in product research, steps to make your product research successful.

Product Research Definition: Product research is a systematic process of gathering and analyzing information to gain insights into a product or idea. It involves studying the market, target audience, competitors, and relevant industry trends to make informed decisions about the product’s design, development, and marketing.

The main goal of product research is to understand potential customers’ needs, preferences, and pain points, ensuring that the final product meets their demands and expectations. 

By conducting product research, businesses can identify opportunities for improvement, uncover potential obstacles, and refine their product strategy to create a successful and competitive offering in the market.

Several methods are used in product research, such as surveys, focus groups, interviews, observational studies, and data analysis. The findings from these research activities are crucial in guiding product development, pricing, positioning, and marketing efforts, ultimately increasing the chances of creating a product that resonates with the target market and generates positive outcomes for the company.

Let’s dive deeper into the product research process for a better understanding.

Product research is a critical part of the product development process. It helps teams to understand their users, identify their needs, and validate their ideas. However, how product research is conducted can vary across different product teams.

In some teams, product research is conducted by a dedicated team of researchers. These researchers have the expertise and experience to collect and analyze data, and they work closely with product managers to ensure that the research findings are used to inform product decisions.

In other teams, product research is conducted by product managers themselves. These product managers may have some training in research methods. Still, they often rely on various other sources of information, such as user feedback, market data, and competitive analysis.

The way that product research is conducted can also vary depending on the product team’s methodology. Waterfall teams tend to conduct product research more linearly, clearly distinguishing between the research and development phases. Agile teams, on the other hand, are more likely to integrate research with the broader product development process using continuous discovery methods.

No matter how it is conducted, product research is an essential part of the product development process. Product teams can create more successful products by understanding their users and their needs.

Here are some additional factors that can influence the dynamics of product research across product teams:

• The size and maturity of the team. Larger teams with more resources may have dedicated research teams. In comparison, smaller groups may rely on product managers to conduct research.
• The industry that the team is in. Some industries, such as healthcare and finance, require a high degree of regulatory compliance, which can impact how product research is conducted.
• The company’s culture. Some companies have a strong culture of data-driven decision-making, while others rely on gut instinct. This can also influence the way that product research is conducted.

The dynamics of product research across product teams can be complex. However, by understanding these dynamics, product teams can ensure they use research effectively to create successful products.

To embark on a successful product research journey, follow these essential steps that prioritize understanding your target audience and meeting their needs:

• Define Your Target Audience: Clearly identify your potential customers’ specific demographic and psychographic characteristics. Understand their preferences, pain points, and behaviors to tailor your research accordingly.
• Conduct Market Research: Analyze the current market trends, industry dynamics, and potential opportunities for your product. Look into existing competitors and their offerings to uncover gaps your product could fill.
• Set Clear Objectives: Define the goals of your product research. Whether enhancing an existing product or developing a new one, having clear objectives will help focus your efforts and measure success.
• Choose Appropriate Research Methods: Utilize a mix of research techniques like online surveys, interviews, focus groups, and data analysis. Each method offers unique insights into your target audience’s preferences and expectations.
• Create Customer Personas: Based on your research findings, develop detailed customer personas that represent different segments of your target audience. These personas will serve as fictional representations of real customers and guide product development decisions.
• Analyze Competitor Offerings: Study your competitors’ products to understand their strengths and weaknesses. Identify opportunities for differentiation and improvement in your product.
• Gather Feedback Iteratively: Involve your target audience in product development by collecting Feedback at various stages. Iteratively refine your product based on this Feedback to ensure it aligns with customer expectations.
• Test Prototypes: Create prototypes or minimum viable products (MVPs) to gather user feedback early in development . Identifying potential issues before the final product launch can save time and resources.
• Consider Pricing and Positioning: Determine the appropriate pricing strategy and how you will position your product in the market. The perceived value of your product influences customers’ purchasing decisions.
• Stay Open to Adaptation: Be willing to adapt your product based on the insights gained throughout the research process. Consumer preferences and market dynamics can change, and flexibility will keep your product relevant.

Remember, product research is an ongoing process that should continuously inform your decision-making. Focusing on the needs and expectations of your target audience will increase the likelihood of creating a successful and well-received product in the market.

Data is essential for product research. It helps teams to understand their users, identify their needs, and validate their ideas. By collecting and analyzing data, product teams can better decide what features to build, how to improve the user experience, and how to market their products.

Many different types of data can be used for product research. Some familiar sources of data include:

• User feedback: This can be gathered through surveys, interviews, and user testing.
• Market data: This includes information about the target market size, the competition, and the trends in the industry.
• Product data: This includes information about how users are using the product, such as what features they use, how often they use them, and what problems they are having.

By collecting and analyzing this data, product teams can deeply understand their users and their needs. This information can then be used to make better decisions about the product, such as:

• Which features to build: By understanding what features are most important to users, product teams can prioritize their development efforts.
• How to improve the user experience: By understanding where users are having problems, product teams can make changes to the product to enhance the experience.
• How to market the product: By understanding the target market, product teams can create marketing campaigns that are more likely to be successful.

Data is an essential tool for product research. By collecting and analyzing data, product teams can make better decisions about the product, leading to increased user satisfaction and market success.

A study by the Harvard Business Review found that companies that use data-driven decision-making are 23 times more likely to be profitable than those that don’t. The study also found that these companies are more likely to be innovative and grow faster.

Making your product research successful involves a systematic and customer-centric approach. Follow these steps to ensure you gather valuable insights and develop a winning product:

• Clearly Define Objectives: Start by setting specific goals and objectives for your product research. Understand what you want to achieve and the questions you need answers to.
• Know Your Target Audience: Identify your target audience and their characteristics. Understand their needs, preferences, and pain points to tailor your research accordingly.
• Utilize Multiple Research Methods: Employ a mix of research techniques, such as surveys, interviews, focus groups, and data analysis. Each method provides unique insights into your target audience’s behavior and preferences.
• Create Detailed Customer Personas: Develop well-defined customer personas based on your research findings. These personas will represent your ideal customers and guide product development decisions.
• Analyze Market Trends and Competitors: Study the current market trends and analyze your competitors’ offerings. Identify gaps and opportunities to differentiate your product.
• Iterate and Gather Feedback: Involve your target audience throughout product development. Gather Feedback at different stages to iterate and refine your product based on real user insights.
• Test Prototypes and MVPs: Create prototypes or minimum viable products (MVPs) to obtain early user feedback. This helps identify potential issues and make necessary improvements.
• Consider Pricing and Positioning: Develop a pricing strategy that aligns with the perceived value of your product. Determine how to position your product in the market to stand out.
• Stay Agile and Adaptable: Be open to adapting your product based on the insights gained during the research process. Market dynamics can change, and staying agile ensures your product remains relevant.
• Involve Cross-Functional Teams: Collaborate with different departments, including marketing, design, and engineering, to gain diverse perspectives and expertise during the research and development phases.
• Stay Customer-Centric: Keep the needs and expectations of your target audience at the forefront of your decision-making. A customer-centric approach increases the chances of delivering a product that resonates with the market.
• Learn from Failures: Embrace failures and setbacks as opportunities for learning and improvement. Use Feedback from unsuccessful attempts to refine your product and strategy.

By following these steps, you can ensure a comprehensive and compelling product research process, leading to the development of a successful product that meets customer needs and achieves business objectives.

Google Trends can be used for product research by analyzing search trends to identify the popularity and interest in specific products over time. It helps businesses understand consumer preferences and anticipate market demands.

An example of product research would be conducting surveys and focus groups to gather Feedback on a new smartphone design. This research helps the company understand customer preferences, desired features, and potential improvements for the final product.

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Product Research

This article covers meaning, importance, stages & example of Product Research from marketing perspective.

What is Product Research?

Product research is the process of marketing research that is done to get information on the desired characteristics and specifications of a product expected by the potential customers mainly before the launch and availability of the product. Product research helps companies to understand what the customers really want, so that the product can be tailored to match the needs of the customer.

This research can help to refine new product ideas as well as improve the existing products in the market.

Importance of Product Research

Product research is a very important activity in new product development – it can be carried out at several stages of new product development. Product research helps an organization make products which are expected by the customers. This helps have an competitive advantage and leadership position in the market.

A well researched product will meet the requirements of the customer in a much better way. Product research even more important when you are launching a product in the market where there are lot of competitors. Knowing the customer's feedback on the features, characteristics can really help make a product which solves the existing products' issues in the market.

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Product Research Stages

There are various stages in the product research process:

1. Before Launch Research

In the initial stages, product research can be carried out to identify and screen new ideas. This testing will help reduce costs by avoiding product development costs in the discarded ideas.

In the later stages of product development, product research can help companies to identify which features are important and hence retain them and which features can be discarded.

2. Testing and Feedback

A newly developed product is also tested with customers, to identify any changes to be made to packaging etc. Testing is very important when it comes to research. A well research but not well tested product may still end up failing. Testing can be done in-house or through actual customers through small groups, trials, offers etc.

3. Soft Launch Research

Most of the products are soft launched before being launched across the target markets. The soft launch is used for gathering feedback from potential customers and making changes in the product which can benefit. Test marketing is done for small groups or areas and the response is validated. If the soft launch is not a success, then a product need to go through the research stage again and may be relook at the product.

4. Post Launch Research

Once everything is done, the product is launched in the market. Even though test marketing is done but when it is launched for a larger population, things may go different. Hence it is very important to see an understand the customer behavior and response to the newly launched product or its variant. Once the product is launched, consumer satisfaction with the product is tested. Most common techniques used in product research include focus group discussions, interviews and surveys. Based on this feedback, next steps can be planned for the product.

Product Research Example

Many times we see that companies do test marketing for a new product through a promotion or an offer. They launch these products in small quantity in retail stores and see if the customers are liking it or buying. In trade events and exhibitions we see stalls for trying the product to gather feedback. All these activities are part of the product research.

Hence, this concludes the definition of Product Research along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team . The content on MBA Skool has been created for educational & academic purpose only.

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New product development (NPD)

New Product Development is a comprehensive set of multidisciplinary processes that turn an opportunity into a product that will satisfy a customer.

Contents covered in this article

Introduction to New Product Development (NPD)

What is new product development.

New Product Development (NPD) is a comprehensive multi-disciplinary process that transforms a market opportunity into a marketable new product to satisfy customer requirements.

According to Wheelwright and Clark (1992), NPD is defined as effective activity organisation and management to bring products to market with low development costs and short development times.

PDMA defines NPD as,

“A disciplined and defined set of tasks and steps that describe the normal means by which a company repetitively converts embryonic ideas into saleable products or services.”

PDMA handbook 2nd edition

It’s sometimes called New Product Introduction (NPI) or new product planning and development. It applies to tangible products such as phones, coffee makers, TVs, etc., and intangible products like mobile phone apps and software programs.

Importance of New Product Development

Why is New Product Development necessary?

NPD is the driving force of companies and vital for their organic growth. Insatiable consumer appetite, worldwide solid competition, and changing consumer behaviour and technology force companies to invest in new products to succeed or for their survival.

The importance of introducing new products can be summarised in these “Seven reasons why new product development is necessary.”

Changing consumer Increasing competition Technological advancement New opportunities (growth and development) Risk diversification To increase company & brand reputation To utilise excess capacity

New Product Development Strategy

A New Product Development (NPD) strategy is a plan or framework that guides creating and delivering a new product to the market. It involves steps and decisions to identify opportunities, conceptualise, design, develop, and launch a product that meets customer needs and aligns with business goals.

Importance of New Product Development Strategy

Why do you need a thorough NPD strategy? According to the McKinsey Global Institute data, consider these 4 statistical facts about how products are fair.

Only 4 in 7 product ideas enter the product development stage Only 3 products get launched from 14 product ideas Only 1 in 7 product ideas will yield a successful product Launched products have a failure rate of 25% to 45%

Research shows that some NPD failures can be attributed to the lack of a structured NPD process. According to Wheelwright and Clark (1992), companies that approach NPD in a structured manner have more success than those with an ad-hoc approach.

By following a well-planned set of procedures & milestones, companies can avoid some of the common pitfalls that lead to the failure of NPD, such as;

Overestimate market size Customer requirement misinterpretation Launched at the wrong time Poor product design Target customer’s requirement mismatch Price too high Poor advertising and marketing High product development cost due to overrun & resource overuse Competition risks and threats

Structured approach vs. ad-hoc methods

Typical NPD processes companies follow can be divided into Structured approach vs. ad-hoc methods.

When developing new products, structured approaches and ad hoc methods have merits and drawbacks.

Structured Approach

Methodical Process – A structured approach follows a systematic, step-by-step process. It typically involves stages like idea generation, feasibility analysis, design, development, testing, and launch.

Risk Management – It often incorporates risk assessment and mitigation strategies at each stage, reducing the chances of significant setbacks or failures.

Efficiency – Structured methods can enhance efficiency by providing clear guidelines, roles, and responsibilities. They also make it easier to track progress and make necessary adjustments.

However, structured approaches can sometimes be rigid, potentially stifling creativity or innovation. They might also require more time and resources upfront. Typically

Ad-Hoc Methods

Flexibility and Creativity – Ad-hoc methods allow for more flexibility and spontaneity. They can adapt highly to changing circumstances, enabling quick pivots or adjustments based on emerging opportunities or feedback.

Cost and Time – They may save time and resources initially by skipping formalities and allowing for rapid prototyping or testing. This agility can sometimes lead to faster product iterations.

However, ad-hoc approaches need consistency, increasing the risk of overlooking critical steps or making hasty decisions. They also result in inefficiencies due to the absence of a defined structure.

The ideal approach often involves balancing structured and ad hoc methods. Incorporating structured steps ensures essential considerations are addressed while allowing room for flexibility to encourage innovation and adaptation.

For instance, using a structured approach for the core development process while allowing for creative brainstorming sessions or agile methods during certain stages can combine the benefits of both approaches.

Models and Frameworks in NPD

New product development models overview.

A well-tailored NPD strategy will enable companies to organise their product planning, understand their customers, accurately plan, and efficiently use their resources for NPD. An NPD strategy will also help to avoid the pitfalls mentioned above and increase the chance of product success.

New product development methods

Comparison of different NPD frameworks

There are various models proposed by authors before. Still, it starts with an idea to build a product that meets the customer’s technical specifications. It ends with a product launch or introduction to the market. The number of stages and phases and their description varies from model to model depending on the following.

Product type (tangible/intangible) The degree of innovation (redesign vs routine design). Product Complexity Production & manufacturing process – manual or automated Supply chain Technology involved. Resource availability (workforce) Labour availability? Time and budget

New product development stages

As the table above shows, the product development stages can vary, but they often can be grouped into these 5 key phases, which include 8 critical activities;

Overview of the NPD process

Fuzzy front end Opportunity identification & analysis Idea generation & screening Concept & technology development Business case building Marketing strategy development and marketing mix Business analysis Product design Product design Product Implementation Test marketing Commercialisation/Fuzzy back end Product launch

Five key New product development stages

Fuzzy front end.

As the name suggests, the fuzzy front end is the messy stage of the new product development where opportunities are identified & analysed, and ideas are generated & screened before a viable concept is developed. This set of activities paves the way for a formal technical specification of the final product.

Business case building

This stage analyses the market before product design and development begin. Marketing strategy development defines the target market, sales, and market share. The company must also determine the best market mix ( 4Ps—product, place, price, and promotion). Finally, the company evaluates the proposed product’s attractiveness against its long-term objectives.

Product design

The product design stage is the detailed phase where the technical requirements are turned into an engineering product design. In engineering, prototyping and product design are at the heart of any product development and follow the following four phases.

Product definition and product planning Conceptual design Embodiment design Detail design

Product Implementation

Market testing – The stage at which the product is introduced using the proposed marketing program. It lets the company test the product and its marketing program—targeting and positioning strategy, advertising, distribution, pricing, branding and packaging, and budget levels.

Commercialisation

After the product implementation phases, management will have gathered all the relevant information to make the final decision about going commercialisation. At this stage, companies use the knowledge gained from the product implementation stage and their marketing mix to launch the product, where product life cycle management starts.

Factors influencing development stages

In New Product Development (NPD) methods, several factors influence each stage of the development process. These factors can shape decision-making, resource allocation, and overall success. Here are some key factors that have an impact:

Market Trends and Consumer Needs – Understanding market trends and evolving consumer needs is crucial. These insights guide idea generation and concept development and ensure the product meets customer expectations. Technological Advancements —Technology influences product design, development, and production methods. Staying abreast of new technologies helps create innovative products, improve efficiency, and enhance competitiveness. Regulatory and Compliance Requirements – Legal and regulatory standards impact product development, especially in healthcare, food, and automotive industries. Compliance with safety, environmental, and industry-specific regulations is essential. Competitive Landscape —Analysing competitors’ products and strategies is vital. It helps identify market gaps, differentiate products, and create unique value propositions. Resource Availability and Constraints – The availability of financial resources, skilled personnel, technology, and infrastructure affects the speed and scope of product development. Constraints in any of these areas can influence decision-making and the development timeline. Risk Management and Feasibility – Assessing risks associated with new product development is crucial. Factors like technical feasibility, market acceptance, manufacturing challenges, and financial risks need careful consideration at each stage. Cross-functional Collaboration – Collaboration between departments like R&D, marketing, production, and sales is essential. Effective communication and collaboration streamline the NPD process and ensure a holistic approach. Customer Feedback and Testing —Gathering feedback from potential customers through surveys, focus groups, and prototypes influences product refinement. Testing helps validate ideas and ensure that the product meets customer expectations. Time-to-Market Considerations – Speed is often critical in launching a successful product. External factors like seasonal demands or technological obsolescence might necessitate quicker development and launch. Sustainability and Environmental Factors – Considerations about sustainability, environmental impact, and societal values are increasingly important. Consumers often favour products that align with sustainability goals and ethical standards.

The interplay of these factors differs across industries and products, requiring flexibility and adaptability in the NPD process. Companies that effectively navigate these influences often produce products that are not only innovative but also aligned with market demands and regulations.

Current Trends and Future Directions in NPD

Impact of technology on npd.

Market Trends and Consumer Needs – Understanding market trends and evolving consumer needs is crucial. These insights guide idea generation and concept development and ensure the product meets customer expectations.

Technological Advancements —Technology influences product design, development, and production methods. Staying abreast of new technologies helps create innovative products, improve efficiency, and enhance competitiveness.

Regulatory and Compliance Requirements – Legal and regulatory standards impact product development, especially in healthcare, food, and automotive industries. Compliance with safety, environmental, and industry-specific regulations is essential.

Competitive Landscape —Analyzing competitors’ products and strategies is vital. It helps identify market gaps, differentiate products, and create unique value propositions.

Resource Availability and Constraints – The availability of financial resources, skilled personnel, technology, and infrastructure affects the speed and scope of product development. Constraints in any of these areas can influence decision-making and the development timeline.

Risk Management and Feasibility – Assessing risks associated with new product development is crucial. Factors like technical feasibility, market acceptance, manufacturing challenges, and financial risks need careful consideration at each stage.

Cross-functional Collaboration – Collaboration between departments like R&D, marketing, production, and sales is essential. Effective communication and collaboration streamline the NPD process and ensure a holistic approach.

Customer Feedback and Testing —Gathering feedback from potential customers through surveys, focus groups, and prototypes influences product refinement. Testing helps validate ideas and ensure that the product meets customer expectations.

Time-to-Market Considerations – Speed is often critical in launching a successful product. External factors like seasonal demands or technological obsolescence might necessitate quicker development and launch.

Sustainability and Environmental Factors – Considerations about sustainability, environmental impact, and societal values are increasingly important. Consumers often favour products that align with sustainability goals and ethical standards.

Trends shaping the future of product development

The future of product development is shaped by several transformative trends influencing how products are conceptualised, designed, manufactured, and brought to market. Some of these trends include:

Advanced Technologies Integration

AI and Machine Learning – These technologies assist in data analysis, trend prediction, and personalised product development based on consumer behaviour and preferences. Internet of Things (IoT) – Connecting devices and products enables data collection, remote monitoring, and the creation of intelligent, interconnected ecosystems. Augmented Reality (AR) and Virtual Reality (VR) – These technologies enhance product design, testing, and customer experiences by providing immersive and interactive interfaces.

Sustainable and Eco-friendly Products

Increasing consumer awareness and environmental concerns are driving the demand for sustainable products. This trend involves using eco-friendly materials, reducing waste, and creating products with a smaller ecological footprint.

Mass Customization

Consumers seek personalised products. Companies are leveraging technology to offer customisable options at scale, allowing customers to tailor products to their preferences.

Collaborative and Agile Development:

• Cross-functional collaboration and agile methodologies are becoming more prevalent. Companies are breaking silos, enabling faster iterations, and incorporating feedback throughout the development process.

Additive Manufacturing (3D Printing):

• 3D printing revolutionises prototyping and manufacturing by enabling cost-effective, on-demand production of complex parts and customised products.

Remote Work and Digital Collaboration:

• Remote work trends impact product development teams, necessitating digital collaboration tools and processes to facilitate seamless communication and cooperation among dispersed teams.

Emphasis on User Experience (UX) and Design Thinking:

• Design thinking methodologies prioritise user-centric approaches, focusing on understanding and addressing user needs and pain points throughout the product development lifecycle.

Predictive Analytics, Product Analytics, and Data-Driven Decision-Making:

• Leveraging big data analytics and product analytics for comprehensive market insights, trend analysis, and predictive modelling to make informed decisions throughout the product development process.

Subscription-Based and Service-Oriented Models:

• Shifts towards service-oriented models such as Spotify, Netflix, CCTV camera cloud storage subscription-based products, and product-as-a-service offerings are gaining traction, creating ongoing customer relationships beyond one-time transactions.

Supply Chain Resilience and Localization

• The pandemic highlighted vulnerabilities in global supply chains. There’s a move towards building more resilient supply chains, focusing on localisation, diversification, and agility. 

Embracing these trends allows companies to stay competitive, respond to evolving consumer demands, reduce time-to-market, and create products that align with changing societal, environmental, and technological landscapes.

5 Challenges of new product development

There is more than one reason why companies should create new products . Developing quality new engineering products consistently and having a stronghold in your niche market is one of the most powerful but difficult activities in business (Clark and Wheelwright 1995). 75% of new product developments fail, which shows how challenging it can be for the new engineering product design team to succeed.

Product designers face various challenges during the development cycle, however, not all of them are technical. Some of the challenges are due to external factors such as cost, economic changes, competitor influence, company policy etc.

Let’s look into some of the key general non-technical challenges that product design engineers face in detail.

As an engineering product designer, one of the hardest things is to justify the decisions and manage trade-offs during the embodiment design stage.

For example, a car can be made to look like the BMW concept car and also made lighter, faster, more efficient etc, but all these would probably increase manufacturing cost and the car will cost more than the targeted segment of the market can afford. Hence, to keep the unit selling cost down, compromises have to be made to the original product requirement specification without sacrificing some of their original unique selling points.  The challenge here is to identify, understand and manage such trade-offs in a way to increase the product’s success.

Product economics

Product economics is all about profitably developing and selling an engineering product to solve a customer’s problem.

Every product designer who had to make a trade-off decision would know that the decision was made most probably due to economics. The 8 stages of new product development require a large investment and a lot more effort than you think at the start. To get a reasonable return on investment, the end product must be both appealing to customers and relatively inexpensive to produce.

As the cost breakdown shows in image above on average an engineering product design accounts for only 5% of the total NPD cost but its influence on the rest is 70%. Even a simple design for assembly (DFA) change of using snap-fits instead of self-tapping screws can save thousands of pounds. No matter how simple the product is, there will be hundreds of such decisions that would have an impact on the final selling price.

Thus, the challenge is to make the correct decisions during the product design stage so that subsequent costs (material, labour & overheads) can be kept to a minimum.

Global competition

Due to globalisation and international marketplaces such as Amazon , eBay , Alibaba , etc., the global market can be accessed from anywhere in the world. Global competition is one of the biggest challenges companies face during product development due to this large and diverse marketplace.

A company could start developing an engineering product unaware that an overseas competitor is already halfway through theirs.

Here the challenge is to design and develop a product to launch at the right place and time for the right price before your competitors.

Time pressure

Most technology-driven engineering product design companies compete on NPD cycle time , so they can launch the product first in the market. This was highlighted by Stalk’s (1988) term “time-based competition”.

Due to this global competition, the entire new product development from concept to market launch is often carried out to a very tight delivery schedule.

Without the time pressure, product design technical challenges can be managed, but due to the tight schedule technical issues have to be resolved and decisions made quickly.

Hence the challenge is to make the managerial decisions to avoid project overrun without compromising the design specification within the specified timeframe.

Dynamic environment

Although the product design and development duration depend on the product type and the industry, in general, it’s safe to say that it takes on average 9 – 12 months. It would take longer if the products need approval for FCC, CE etc.

In this period, technologies advance, customer needs change and evolve, competitors introduce similar products and the economic environment shifts.

Hence, the challenge is to make crucial decisions promptly and invest money in a constantly changing environment to succeed.

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The Optimal Path Podcast

Jul 24, 2024 • 8 minutes read

From concept to market: A step-by-step to the new product development process

Learn how to create a successful new product development process with tips and best practices from product experts.

Giada Gastaldello

Content Marketing Manager at Maze

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New Product Development (NPD) is the set of design, engineering, and research processes that combine to create and launch a new product to market. Unlike regular product development, new product development is specifically about developing a brand new idea and seeing it through the entire product development process—culminating in a new product.

In today's competitive market, the ability to offer products that meet customers' needs and expectations has never been more important.

Customer requirements, behaviors, technology, and competition are changing rapidly, and businesses cannot rely on existing products to stay ahead of the market. They need to innovate, and that means developing and successfully launching new products.

In this article, we explain what new product development is and break down its seven stages. We also share best practices for developing your own NPD process, along with tips from product experts at Meta, Priceline, Bonsai, and EduMe.

What is new product development (NPD)?

New product development refers to the complete process of bringing a new product to market . This can apply to developing an entirely new product, improving an existing one to keep it attractive and competitive, or introducing an old product to a new market.

The emergence of NPD is driven by the need of companies to maintain a competitive advantage in the market by introducing new products or innovating existing ones . While regular product development refers to building a product that already has a proof of concept, new product development focuses on developing an entirely new idea—from idea generation to development to launch .

NDP helps you:

• Stay updated with new technology and trends
• Beat the competition with creative solutions
• Offer more products and find new streams of revenue
• Adapt to changing customer needs
• Use resources more efficiently
• Improve your brand's image
• Grow your business and ensure sustainability

Types of new product development: When do you need an NPD process?

NPD typically falls into one of these three types:

New-to-the-world products

These are innovative products that have never been designed and developed before. These products have the capacity to create entirely new markets. Think of the first personal computers, for example, which brought computing into homes; or the initial release of smartphones, which changed how we communicate and access information. These products often come with high risks but also the potential for high rewards.

New-to-the-firm products

These products already exist in the market but are new to the company. Like when a male grooming company, initially focused on razors and beard care, expanded into new personal care products—like body wash and shampoo. This move doesn’t redefine the business, but it broadens the business offerings and can reach a wider audience.

Additions to existing product lines

This involves introducing new versions or variations of existing products. For example:

Software updates that introduce new features, improved security, bug fixes, and user interface improvements Revisions to an existing product's design, materials, or process to improve its functionality, durability, or cost-effectiveness Upgrades or replacements of specific components or subsystems within a larger product to improve its overall capabilities or performance

The goal is to keep the existing product relevant, competitive, and aligned with evolving customer needs and market trends—rather than introducing an entirely new product line. These additions help keep the product line fresh and appealing to customers, offering them more choices and meeting diverse needs.

The 7 stages of new product development: A step-by-step process

When it comes to new product development, each journey to a finished product is different. Although the product development process can vary from company to company, it's possible to break it down into seven main stages. Let's have a look at them one by one.

1. Idea generation

Idea generation involves brainstorming for new product ideas or ways to improve an existing product. During product discovery , companies examine market trends, conduct product research , and dig deep into users' wants and needs to identify a problem and propose innovative solutions.

A SWOT Analysis is a framework for evaluating your product’s strengths, weaknesses, opportunities, and threats. It can be a very effective way to identify the problematic areas of your product and understand where the greatest opportunities lie.

There are two primary sources of product development ideation. Internal ideas come from different areas within the company—such as Marketing, Customer Support, the Sales team, or the Engineering department. External ideas come from outside sources, such as studying your competitors and, most importantly, feedback from your target audience.

Some methods you can use are:

• Conducting market and product analysis
• Working with product marketing and sales to check if your product's value is being positioned correctly
• Collecting customer feedback with user interviews , focus groups, UX surveys , and product analytics
• Running user tests to see how people are using your product and identify gaps and room for improvement

Ultimately, the goal of the idea generation stage is to come up with as many ideas as possible while focusing on delivering value to your customers.

2. Idea screening

This second step of new product development revolves around screening all your generated ideas and picking only the ones with the highest chance of success. Deciding which ideas to pursue and discard depends on many factors, including the expected benefits to your consumers, product improvements most needed, technical feasibility, or marketing potential.

The idea screening stage is best carried out within the company. Experts from different teams can help you check aspects such as the technical requirements, resources needed, and marketability of your idea.

Logic trees, like Teresa Torres’ Opportunity Solution Tree , can help you visualize and chart the best path to your desired outcome. Ben Zacharias , Product Director at Priceline, explains:

Logic trees are a valuable tool to try and make sure I have a structured understanding of the space I'm working in and making good decisions when choosing problem spaces to work on.

Ben Zacharias , Product Director at Priceline

3. Concept development and testing

All ideas passing the screening stage are developed into concepts. A product concept is a detailed description or blueprint of your idea. It should indicate the target market for your product, the features and benefits of your solution that may appeal to your customers, and the proposed price for the product. A concept should also contain the estimated cost of designing, developing, and launching the product.

Developing alternative product concepts will help you determine how attractive each concept is to customers and select the one with the highest value.

Once you’ve developed your concepts, test each of them with a select group of consumers. Concept testing is a great way to validate product ideas with users before investing time and resources into building them.

Concepts are also often used for market validation . Before committing to developing a new product, share your concept with your prospective buyers to collect insights and gauge how viable the product idea would be in the target market.

4. Marketing strategy and business analysis

Now that you’ve selected the concept, it’s time to put together an initial marketing strategy to introduce the product to the market and analyze the value of your solution from a business perspective.

• The marketing strategy serves to guide the positioning, pricing, and promotion of your new product. Once the marketing strategy is planned, product management can evaluate the business attractiveness of the product idea.
• The business analysis comprises a review of the sales forecasts, expected costs, and profit projections. If they satisfy the company’s objectives, the product can move to the product development stage.

5. Product development

The product development stage consists of developing the product concept into a finished, marketable product. Your product development process and the stages you’ll go through will depend on your company’s preference for development, whether it’s agile product development , waterfall, or another viable alternative.

This stage usually involves creating the prototype and testing it with users to see how they interact with it and collect feedback. Prototype testing allows product teams to validate design decisions and uncover any flaws or usability issues before handing the designs to the development team.

We always test the main features with usability testing, first, to choose the best flow, and second, to iterate on the flow and make sure it’s clear for the users. After usability testing, we can finalize the flow and prepare it for the developer handoff.

Regina Smirnova , Lead Product Designer at Meta

Regina Smirnova , Lead Product Designer at Meta, uses the IDEO Design Thinking approach when working on a new product. Design thinking brings together “what is desirable from a human point of view with what is technologically feasible and economically viable.” As Regina explains, a successful Minimum Viable Product (MVP) lives at the intersection of desirability, feasibility, and viability.

6. Test marketing

At this stage, it's essential to stay in touch with customers and gather research data to understand what works and resonates with the target audience and what doesn’t. Results can also be used to write the copy and the messaging around the launch.

Laure Albouy , Senior Product Marketer at Bonsai

Test marketing involves releasing the finished product to a sample market to evaluate its performance under the predetermined marketing strategy.

There are two testing methods you can employ:

• Alpha testing is software testing used to identify bugs before releasing the product to the public
• Beta testing is an opportunity for actual users to use the product and give their feedback about it

The goal of the test marketing stage is to validate the entire concept behind the new product and get ready to launch the product.

7. Product launch

A successful product launch is about setting your key results as early as possible, understanding how to track them, and then figuring out how to use the learnings to make changes or adapt.

Ian Booth , Product Team Lead at EduMe

At this point, you’re ready to introduce your new product to the market. Ensure your Product, Marketing, Sales, and Customer Support teams are in place to guarantee a successful launch and monitor its performance.

Remember, product launch is a critical part of the broader commercialization stage.

While the product launch focuses on the initial introduction of the product to the market, commercialization includes the entire timeline from product development to market saturation.

To better understand how to prepare a go-to-market strategy, there are some essential elements to consider:

• Customers : Understand who will be making the final purchasing decisions and why they will be purchasing your product. Create user personas and identify their roles, objectives, and pain points.
• Value proposition : Identify what makes you different from the competition and why people should choose to buy your product
• Messaging : Determine how you will communicate your product’s value to potential customers
• Channels : Pick the right marketing channels to promote your products, such as email marketing, social media, SEO, and more

You will need to constantly track and measure the success of your product launch and make adjustments if it doesn't achieve the desired goals.

Expert tips for creating a product development process

Looking to deliver successful products? Here are some tips from product experts at Meta, Priceline, Bonsai, and EduMe, on creating an effective product development process.

Align around the same vision

“I think the most important part is to align on the product vision and the company goal. Everyone in the team should understand where we are moving and what principles we follow during the product development process,” says Regina Smirnova, Lead Product Designer at Meta..

Yet Laure Alboy , Senior Product Marketer at Bonsai, points out: "Sometimes it’s hard to be in the right conversation at the right time, and there are so many conversations to be a part of. I think one way to get visibility is to be part of strategic conversations and being the person who’s leading the questions around 'why are we doing this?'"

Ben Zacharias, Product Director at Priceline, explains that having a clear understanding of the product development strategy and company goals makes it much easier to make good decisions and trade-offs along the way.

As a product team, you should focus on what you can work on to deliver the most impact. So the critical question you have to start with is: do you really understand what impact means for your team? Do you know your overarching goal and how you're contributing to a broader business/product strategy?

Use roadmaps, backlogs, recurring meetings, and syncs, but keep communicating with your team. “At EduMe, we communicate our vision all the time,” explains Ian Booth , Product Team Lead at EduMe. "Always focus on the value that you're bringing and communicate it constantly."

Understand your customers’ needs

At every stage of the product development process, there is one critical driving factor: the customer. Identify what your customers need, which features would help them the most, and how to make your product appealing to them.

The user voice and the collaboration with customers is something that’s really part of my routine. We’re not talking about the feature or the product. We’re talking about the solution for the problem that the customer has. So it’s less feature-oriented and more benefit-oriented.

Ganna Kryklii , Lead Product Designer at Meta

Collecting product feedback and insights helps you ensure that the end product meets their expectations, solves their problems, and fulfills their needs.

When it comes to making and validating decisions, Ian points out that it’s always best to have qualitative data alongside quantitative information. You can use product surveys , customer interviews and market research, but make sure you back up those insights with behavioral data on how users use the product.

Build a strong team

Product development is a creative process at its core. Better results often come from teams being able to create a process together that works for that specific group.

“I think the foundational parts of a great product development process are often the intangible, human elements that help create motivation, focus, and impact,” says Ben. Supportive leadership, clear direction, an open and high empathy culture, and a learning mindset are crucial to building productive teams and great products.

Also, each team is different. So, it’s essential to create a supportive and flexible environment that allows you to identify which product development process works best for you and your organization.

Get inspired: Nextflix’s real word new product development

Netflix, the world's leading streaming service with over 209 million subscribers in 190+ countries, began as a DVD rental business in 1997 and transitioned to streaming in 2007. It already existed in the video rental space, but saw a chance to develop a new product and expand into a new market—the video streaming services industry.

After this immense success, today key aspects of its product development include:

• Consumer science : Netflix employs a methodology of experimenting, testing, and learning from user behavior to drive engagement, retention, and product success
• Rapid prototyping: The Netflix team quickly create and test product prototypes with real users to validate ideas
• Personalization: The platform uses AI and machine learning to offer personalized content recommendations, improving user experience
• Original content: Focuses on producing original series like Stranger Things , Bridgerton , and Squid Game , to attract and retain subscribers, driving continuous innovation

🧠 Hungry for more? Get your fill of innovation with these creative product development examples .

Final notes on NPD

Having an efficient new product development process is essential to bringing your final product to the market. Hopefully, by following these steps and expert tips and adapting them to your business strategy, you can build a successful product.

Make your product truly customer-centric with Maze

Usability test prototypes or live products across the development cycle and discover how actions are performed, successful paths, and snags in the user journey.

Frequently asked questions about the new product development process

What is new product development?

New product development is the complete process of turning an idea into a marketable new product. A company may develop an idea for an entirely new product or improve an existing product to meet new or evolving customers' needs.

What are the 7 stages of product development?

New product development is the process of bringing a new, original product idea to the market. The process can vary depending on the industry, company, and type of product. However, typical steps in the new product development process include idea generation, idea screening, concept development and testing, marketing strategy and business analysis, product development, test marketing, and product launch.

How long does it take to develop a new product and get it to market?

How much time you need will depend on several factors, including the complexity of the product, the industry, the company stage, and the resources available. It involves working through the seven stages of the product development process, so consider your project and how long you expect each stage to take.

What’s the difference between product development and product management?

Product development and product management are not the same, though they are closely related and often overlap:

• Product development focuses on building the product. This involves turning ideas into reality through stages like prototyping and testing
• Product management focuses on the strategy behind the product. This includes defining its purpose, prioritizing features, and ensuring it meets market needs

Product Research

Relevant templates

Product research is the systematic process of gathering, analyzing, and interpreting data and insights related to a specific product or service. It encompasses various methodologies and techniques to understand customer needs, market dynamics, competitor offerings, and industry trends to inform strategic decisions throughout the product lifecycle. Product research is the foundation for developing successful products, guiding innovation, and ensuring alignment with customer expectations and market demands.

Significance of Product Research

Product research plays a pivotal role in guiding strategic decision-making and mitigating risks associated with product development and launch. By conducting thorough research, businesses can gain valuable insights into customer preferences, market trends, and competitive landscapes, enabling them to make informed decisions, minimize uncertainties, and maximize the likelihood of success for their products.

Key Components of Product Research

Product research containes various components and methodologies, including:

• Market Research: Gathering data and insights on market size, segmentation, trends, and dynamics to understand the broader market and identify opportunities and threats.
• Customer Research: Conducting surveys , interviews , and observational studies to understand customer needs, preferences, behaviors, and pain points related to the product or service.
• Competitor Analysis: Analyzing competitor offerings, strategies, strengths, and weaknesses to identify gaps in the market and inform differentiation strategies.
• Trend Analysis: Monitoring industry trends, technological advancements, and consumer behaviors to anticipate future demands and stay ahead of market shifts.
• Usability Testing: Evaluating the usability , functionality, and user experience of prototypes or existing products to identify areas for improvement and optimization.

Methods of Product Research

Product research employs a variety of methods and techniques, including:

• Surveys and Questionnaires: Administering structured surveys and questionnaires to collect quantitative data on customer preferences, attitudes, and behaviors.
• Interviews and Focus Groups: Conducting in-depth interviews and focus group discussions to gather qualitative insights and explore customer motivations, needs, and pain points.
• Market Analysis: Utilizing secondary research sources such as industry reports, market data, and competitor analyses to understand market trends and dynamics.
• Prototype Testing: Creating prototypes or minimum viable products (MVPs) to gather feedback from users through usability testing and iterative design processes.
• Data Analytics: Leveraging data analytics tools and techniques to analyze customer interactions, behaviors, and engagement patterns to derive actionable insights.

Importance of Product Research in Business Development

Product research is indispensable for businesses seeking to develop successful products and drive sustainable growth. Its importance lies in:

• Identifying Opportunities: Product research helps businesses identify unmet customer needs, market gaps, and emerging trends, enabling them to capitalize on opportunities for innovation and differentiation.
• Minimizing Risks: By conducting thorough research, businesses can mitigate risks associated with product development, market entry, and investment decisions, reducing the likelihood of product failures or market setbacks.
• Informing Strategy: Product research provides valuable insights for formulating product strategies, pricing strategies, marketing campaigns, and go-to-market plans, ensuring alignment with customer preferences and market demands.
• Enhancing Competitiveness: By staying informed about market trends, customer preferences, and competitor offerings, businesses can maintain a competitive edge and adapt quickly to changing market conditions.

Product research is a fundamental aspect of business development, providing valuable insights that inform strategic decision-making, drive innovation, and ensure the successful development and launch of products and services. By investing in comprehensive product research methodologies and techniques, businesses can maximize their chances of success, foster customer satisfaction, and achieve sustainable growth in competitive markets

Relevant terms