Product and Pricing Research

The cake shop has a display with price tags

Product Research: 

Meaning:

• Product research is a process that involves gathering data about a specific product or service to determine its potential success in the marketplace. 
• This research can include market research, customer feedback, competitor analysis, product testing and pricing analysis. 
• The goal of product research is to identify the features and benefits of a product, understand consumer needs and preferences, and identify how the product should be positioned in the market.

Definition:

Product research is an evidence-based process of collecting, analyzing, and interpreting data to inform decisions related to the development, marketing, and pricing of a product or service. It includes research into customer needs and preferences, market trends, competitor analysis, product testing, and pricing. The goal is to identify the features and benefits that will best meet customer needs and create a product that is appealing to the target market.

Importance of Product Research:

• Product research is an essential step in the product development process. 
• It can help identify customer needs and preferences, determine the best features and benefits to offer, and assess the potential success of a product in the market. 
• Product research can also identify potential competitors, provide insights into pricing strategies, and give an indication of how the product should be promoted. 
• Product research is an important tool for businesses to make more informed decisions and to help ensure the success of their products.

Objectives of Product Research:

• The objectives of product research are to gather information about a product or service and use it to make decisions about its development, marketing, and pricing. 
• Product research can help identify customer needs and preferences, uncover potential competitors, understand market trends, assess pricing strategies, and determine the best promotional strategies. 
• It can also provide insights into the product’s competitive advantages and help identify potential opportunities for improvement.

Advantages and Limitations of Product Research: 

Advantages of Product Research:

1. Product research can provide a business with valuable insights into customer needs and preferences.
2. It can help identify potential competitors and assess their strengths and weaknesses.
3. Product research can provide an indication of how a product should be positioned in the marketplace.
4. It can help businesses make informed decisions about pricing, promotions, and product features.
5. Product research can uncover potential opportunities for improvement.

Limitations of Product Research:

1. Product research can be costly and time-consuming.
2. It is often difficult to gather accurate and reliable data.
3. Product research can be subject to bias and opinion.
4. It can be difficult to interpret the data and draw meaningful conclusions.
5. Product research may not always be able to predict consumer behavior.

Types of Product Research:

1. Market research: This involves gathering data about the market, such as customer needs and preferences, competitive landscapes, and trends.
2. Customer feedback: This involves gathering feedback from customers to understand their needs and preferences.
3. Product testing: This involves testing a product to assess its performance and identify potential areas for improvement.
4. Pricing analysis: This involves analyzing pricing strategies and assessing the potential impact of changes in pricing.
5. Competitor analysis: This involves analyzing the competition to identify their strengths and weaknesses.

Industrial and Consumable:

Industrial Products: Industrial products are items used in the production of goods and services, such as raw materials, machinery, and tools. Industrial products are usually sold to businesses rather than to individual consumers.

Consumable Products: Consumable products are items purchased for personal or household use, such as food, clothing, and household supplies. These products are usually purchased by individual consumers, rather than businesses.

Production Evaluation and New Product Development Research:

Production Evaluation Research: Production evaluation research is used to assess the performance of a product or service. It can involve customer feedback, product testing, and competitor analysis. The goal is to identify areas for improvement or areas where the product or service may be underperforming.

New Product Development Research: New product development research is used to identify customer needs and preferences, evaluate market trends, and assess potential competitors. The goal is to develop a product that meets customer needs and is well-positioned in the marketplace.

Product and Brand Image Research:

Product Image Research: Product image research is used to assess how a product is perceived by consumers. This research can involve customer surveys, focus groups, and interviews. The goal is to understand how customers perceive the product and how it can be improved.

Brand Image Research: Brand image research is used to assess how a brand is perceived by consumers. This research can involve customer surveys, focus groups, and interviews. The goal is to understand how customers perceive the brand and how the brand can be improved.

Product Design and Development Research:

Product Design Research: Product design research is used to identify customer needs and preferences and understand the features and benefits that would make a product appealing. This research can involve customer surveys, focus groups, and interviews. The goal is to design a product that meets customer needs and is well-positioned in the marketplace.

Product Development Research: Product development research is used to assess the performance of a product or service. It can involve customer feedback, product testing, and competitor analysis. The goal is to identify areas for improvement or areas where the product or service may be underperforming.

Steps In Process of Product Research:

1. Identify customer needs and preferences: This involves gathering data about customer needs and preferences to understand what features and benefits they are looking for in a product.
2. Assess potential competitors: This involves analyzing potential competitors to understand their strengths and weaknesses and determine how a product can be competitively positioned in the marketplace.
3. Analyze market trends: This involves gathering data about market trends and assessing potential opportunities for a product.
4. Conduct product testing: This involves testing a product to assess its performance and identify potential areas for improvement.
5. Assess pricing strategies: This involves analyzing pricing strategies and assessing the potential impact of changes in pricing.
6. Develop promotional strategies: This involves developing strategies to promote a product and increase its visibility in the marketplace.
7. Analyze customer feedback: This involves gathering customer feedback to assess the performance of a product or service and identify areas for improvement.

Pricing Strategy Research: 

• Pricing strategy research is used to determine a product or service's potential pricing and assess its impact on the market. 
• This research can involve customer surveys, focus groups, and interviews to identify customer needs and preferences. 
• It can also involve competitor analysis, pricing models and simulations, and market analysis to understand the effects of pricing on the market. 
• The goal of pricing strategy research is to identify the best pricing strategy to maximize profits and appeal to customers.

Steps in Process of Pricing Research:

1. Identify customer needs and preferences: This involves gathering data about customer needs and preferences to understand what price points are acceptable for a product or service.
2. Analyze potential competitors: This involves analyzing potential competitors to understand their pricing strategies and determine how a product or service can be competitively priced.
3. Develop pricing models and simulations: This involves creating models and simulations to understand the potential effects of different pricing strategies on the market.
4. Analyze market trends: This involves gathering data about market trends and assessing potential opportunities for a product or service.
5. Assess customer feedback: This involves gathering customer feedback to assess the performance of a product or service and identify areas for improvement.