Who has never witnessed someone defending a product idea as if it were their child?

The creator becomes so passionate about the idea that he begins to not see the negative impacts, when having an idea and designing a product we believe that 100% the consumer's needs are met, which is not always true.

The natural tendency is to think about the product and not about what the market needs and is willing to buy.

The importance of understanding the market

When we develop the business model before the product, we reduce marketing risk, structuring a specific strategy and actions so that the chances of market acceptance are greater. This way, energy in product development can be dedicated to generating value for the customer and cash for small and micro-entrepreneurs.

Product creation must meet the target market

After a perceived need, curiosity leads to the discovery that there are no products on the market to meet it. So a product project is promoted believing that it will solve the entrepreneur's problem.

The idea may be good, but if the product is not aimed at a situation that the market accepts and pays for, innovation will become a problem. Discovering this problem only after the product has been launched, with investment in production processes, logistics and marketing, hurts your pocket a lot!

To try to solve this problem, the company often invests even more, dedicating itself to optimizing the product, reducing costs and expanding the target audience. Unfortunately, these actions do not always bring expected results, increasing losses even further.

A product that meets the market’s needs will certainly be more successful.

Your product positioned on the market will certainly be much more assertive when you choose to know the market before even developing the product.

It is crucial to understand whether the identified need is the same as that of many and also seek to know how much the market would pay for a certain solution.

This approach reduces market risk, adapting product characteristics such as design, cost and price, in accordance with the needs of potential customers.

The idea may be good, but if the product is not aimed at a situation that the market accepts and pays for, innovation will become a problem.

If the idea is not financially or technically viable, the loss is very low, as it only consists of the time of the people involved in the new product development activity.

If the project is viable, the previous information defines the product strategy and will guide the project so that, after the product is launched, it becomes desired and purchased.

This will ensure that the company obtains a return on investment and significant profit. In this case we have a positive circle where innovation starts to finance other innovative product projects.

Launching a product that does not meet the market requirements could inhibit future innovations within the company, as innovation becomes very expensive. The company can start to create a culture that innovating by launching a product is bad, as it generates losses, generating a negative circle – less launches, more commodities and less profit.

Product Development should be a routine in your company. We assist entrepreneurs in developing their products through the application of an advanced product development methodology.

If you are interested in find out more about how to apply your product methodology, schedule a meeting with us.