Identifying Market Needs

Having a successful business, a lot of the time, means successfully identifying market needs. This process is essential in terms of new product development, making major and minor adjustments to your business model, reacting to market changes successfully, etc. In this article, we’ll look at the key questions that need to be asked to be able to identify market needs to a sufficient level.

Specifically, we’ll look at the questions that need to be asked when you are going through the process of new product development. It’s important to remember that different scenarios your business is going through will require different questions to be asked of your market’s needs.

Firstly, and most importantly, you need to ask yourself what is the for the product you are proposing. This might seem simple enough to answer, however it is important to make sure you have identified all possible target markets, and understood why a certain target market is most compatible with your new product. While also taking into account potential market shifts. Alongside all of this, you need to ensure that the business analysis of a new product is also aimed toward the same target market as that of the product.

Next you need to work out the specificity of what that target market needs. This can then be cross-examined with the specific benefits of your potential new product. If a large amount of these needs can be satisfied via the benefits of the product, then it is correctly addressing those needs. Make sure to be thorough when identifying a market’s needs, as this process can allow you to see how adaptations can be made to a new product to make it better adjusted for its market.

If your potential new product is one which there are already substitute goods available within your target market, it is important to understand what distinguishes yours from other products. During new product development, a good way to answer this can be to identify current market frustrations of goods within your target market. By identifying these flaws, it then gives you the best chance to overcome them within your own product, therefore finding a gap within your target market.

Finally, make sure you understand where you fit into the market. In other words, make sure you know the size of your company and the size of your competitors. This allows you to adjust your business analysis accordingly. For example, a small business entering a market with established large market leaders needs some strong USPs to make any sort of successful impact

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Tim Spafford

Tim Spafford

Tim is a student who works hard to get a degree in finance and build a successful career in business consulting. Being a student and living in London Tim has a real-life experience in budgeting, saving, money making, traveling and having fun.