Methodical approach
In technological markets many product ideas are created from technological possibilities. Or a customer comes with an idea that needs to be developed. The new product is developed and introduced on a fair and then what.....? Are there orders, is there more business, is there a plan of action?
STEM Industrial Marketing Centre advocate a more methodical approach by researching the market: the concept research. Such research starts with testing productbenefits on the basis of the product idea and concept. This research has to take place at the beginning of the product development process, so actually before you have spent a dime on development.
To do this productconcept research you don't really need a product, just a description of the customervalue and/or advantages. The research can be done in several ways:
- focusgroup discussion with customers and/or experts;
- customer interviews;
- internet survey.
A productconcept research repays itself manyfold by a faster and more effective product development process and a faster and more effective product introduction. Because you already know before you start developing:
- which benefits score highest in the market, producing input for the choice that product developers can make concerning product characteristics;
- for which type of customer the productbenefits produce the biggest value. You know the number of customers and so the market volume;
- to whom you have to offer the new product and which arguments you have to use.
Experience
A large steelcompany had developed a new floorsystem in conjuction with a sheet metal works and had to decide whether they should invest in the development and market introduction of the new product. During an internal brainstormsession the product characteristics were translated into product benefits. These were visualized and described for the benefit of the interviews.
Both contracters, engineer companies and property developers were interviewed. The product benefits were analysed in an important/appreciation matrix. At a single glance the productdeveloper was able to see to what he had to pay attention to and the marketeer knew which benefits he had to emphasize with each separate customergroup.