Businesses in today’s world are faced with significant challenges, including the presence of many market segments and individuals to satisfy. In order to address these challenges, marketers devise different ways to come up with new ideas that meet varying needs of consumers. Marketers agree that the best source of information for new product ideas is customers, both current and potential. However, evidence suggests that customers lack the imagination to envision products that will satisfy their unmeet desires or needs (Arnold, 2013). Another way is to create a new niche for a current product in order to set a firm apart from completion. The product could be a bigger, faster, or quicker than that offered by competitors.
Based on the concept that there are many market segments and individual customers to satisfy, some marketers design products that customers must have, but do not really need. Even though it may seem convenient for companies to outsource the task of inventing new products to their customers, customers may lack the imagination to envision products that will satisfy their unmet needs (Krishna, 2007). For example, focus groups may propose minor improvements to the current product. Is such case, when the products reach the market, they usually fizzle out because the minor improvements are not enough to change the buying habits of buyers.
Companies use market research for new products in getting new ideas and market opinion regarding the product. Using sophisticated market research tools, companies are able to conduct a careful analysis of their customers. Market research tells companies past trends of consumers and not necessarily, what the consumers expect. As such, market research helps companies to predict future market trends and develop products that meet the needs of customers.
References:
Arnold, M. (2013). Millennium marketer sprints ahead. Medical Marketing and Media, 48(2), 30. Retrieved from http://search.proquest.com/docview/1314909518?accountid=458
Krishna, A. (2007). Sensory marketing: research on the sensuality of products. Florence, Kentucky: Psychology Press.
