The Role of Customer Research in New Product Development - Essay Example

The role research in new product development By + The role research in new product development Many organizations recognize the significance of allocating sufficient resources for purposes of research and development. Businesses recognize the essence of new products and customer research is essential for the comprehension of potential consumer reaction to the new product. In big corporations such as Siemens, Boeing and Honda, research and development receives annual budgetary allocations of between 2 and 5 percent. By taking sufficient time to understand the manner in which consumers relate with the existent products and what they lack in them an organization is able to strategically inculcate the consumers’; desires in the new products they develop. Consequently, by incorporating the consumers’ requirements in the designs, quality and composition of its products, an organization is in a position to win over customer loyalty and attract new and potential customers. The customer’s role in the research and development of new products is essential. The significance it plays, as far as profits and sales are concerned is extensive. Many entrepreneurs believe that inventions and innovations normally improve sales. This is opposed to reliance on customers’ needs, where one customer’s demand differs from another customer’s demand. They believe that what can break this barrier are innovations and inventions and that through innovation, a new product is introduced into the market and bridges the different consumer demands, making such opposing needs to converge (Wahab, 2013). Their paradigm is, however, inaccurate because marketing as a strategy concept involves, first knowing the target market, then the needs, wants and demands of the customers. Without knowing consumers’ demands then it is a waste of time selling because a business can be selling an irrelevant product that the target market does not need. Pursuant to that is understanding the products and services on offer since this is what will retain customers’ needs or demands; without consumers then marketing ceases to outlive its usefulness. Last is offering high-quality products and ensuring consumer satisfaction based on how the product is sold (Howard, 2014). Mark Cohen, in his article in the New York Times titled: A Revolutionary Marketing Strategy: Answer Customers’ Question, paints a picture of how the proprietor of Riverpools and Spas, Marcus Sheridon, used his marketing prowess to move the company which was on the brink of collapse back to prosperity. Where Marcus abandoned conventional marketing for content marketing this paid off. The management responded to customer’s questions through as opposed to their previous modus operandi (Mark, 2013). This only serves to tell us how customers can play a major role in marketing and new product development. So with such revolutionary acts, the organization not only cuts down on marketing budget allocations but also bring to the market products and services that are required for the market hence making profit at the end of the day as opposed to gambling with products that the target market does not require. Another strategy which is always a success is targeting the minority groups in society like the Lesbians, Gay, Bi-sexual and Transgender in the society commonly referred to as LGBT. For example in the case of Burger King in San Fransisco, Steven Overly in his article: What Burger King’s Proud Whopper Tells Us About Marketing To LGBT Consumers that was in the Washington Post, elucidates that the response was excellent both in the area and social media where recognizing such groups brings about increases sales volumes (Steven, 2014). The Burger King’s west coast director who also added that the response was good and highlighted that the LGBT do not want to be discriminated and involving them in mainstream media is good for business attested to this. This modus operandi vouches for the marketing strategy of singling out a particular market segment and focusing on it. Just like the Burger King highlighted that such groups are an important market segment that can be exploited and even sympathizers may join the bandwagon of buyers in the hope foe solidarity with the minority group (Steven, 2014). In the long run, the beneficiary is the company or organization that provides such services. Understanding consumers and personalizing a brand to conform to the client’s needs also contributes to the product’s success where a customer is made to feel that he or she owns the brand. Social media has made it even better where one shares personalized information with friends and relatives; this increases the recognition of the brand to a wider clientele base hence its appeal (Tim, 2013). This must be done without the exclusion of certain groups. For acceptability purposes, even if a certain group is the one targeted then the marketing strategy should not look at only that group but should have a wider appeal to all potential customers. A case in point is found in the Guardian, where Tim Grimes paints a picture of what Coca Cola did to endear itself with the British Market. He points out how Coca Cola effectively used social media in marketing, where friends and colleagues spammed twitter and Facebook with pictures of Coca Cola and shared it among friends, along with any information that pertains to coke (Tim, 2013). This has boosted the brand’s image as well as its sales. In addition, in its policy of non- exclusion, Coke saw even persons whom they did not consider their target market also buy their products and Grimes attest that the modus operandi has worked for the company. Consumer research is very critical in new product development but as we do this we should not forget about inventions and innovations, which also espouse profit making. New products in the market helps consumers eager to associate with and try them out based on how these products are presented to them. The immediate environment also determines the customers’ demands; what materials should be used in the production process, what industries produce them and what group of products they belong to. This is to say that for every product purchased, the overriding factor should be of what use the product is. For example, in a rich agricultural area, the major products to be sold or marketed are products like fertilizers, certified seeds and other agriculture-related products unlike urban centres that seek luxury g and trendy goods. Product groups on the other hand allude to a product family. They consist of products from the same company or products from different companies performing similar functions. A good case in point is the beverage industry pitting Coca Cola and Pepsi Cola. Their existence creates an environment where product quality is essential. In case of poor quality and pricing, one is at liberty to go either way depending on choice and preference. The macro environmental factors that dictate consumers’ purchasing behaviours are: culture, demography, and economic, natural, political and technological factors. These forces normally determine what one buys, how he/she buys it and when to buy it. An example is the cultural factor that cuts across such issues as religion, customs and traditions. It is important to research on and understand these issues prior to developing and introducing a product in any region. For instance, in the Islamic world, there are certain products that obviously fail when introduced into such markets unlike products like veils and religious items. This is attributed to the cultural norms in the region that dictate what to buy and what not to buy. In militant Islamic states where Western goods are prohibited the situation is even tougher. Demography determines the quantity of items to produce for a particular market hence is a major factor for consideration in product development and consequently consumption. Prevailing political and economic conditions also influence investments in particular areas and the consumption patterns in those areas, the more stable the region is the more attractive it becomes for business. In the modern world, technology has become an important element that determines production quality and quantity. The use of more advanced technology is a prerequisite for any major product production. It determines consumption patterns (Erick, 2013). Even though different experts differ on the different methods that ought to be used in marketing their goods, their objectives remain the same-profits. The Selection of specific market segments, targeting the whole market group and change of marketing strategy; all these will work but at the end of the day individual efforts and approaches of organizations will make the difference in their profits. It is undisputed that customers’ roles are paramount in product development since ultimately, they are the consumers and it is because of them that the different industries exist. For this reason, organizations that understand the specific needs of their customers are bound to stand out from the others since they operate in tandem with the needs of the market. Bibliography Erick, W. (2013). Go Pro:7 Steps To Becoming A Network Marketing Professional (May,1st 2013 ed.). New York: Network Marketing Pro Inc. Howard, A. (2014). Victim Of Success. The Economist . Mark, C. (2013). A Revolutionary Strategy:Answer Customers Question. New York Times . Steven, O. (2014). What Burger Kings Proud Whopper Tells Us About Marketing To LGBT Consumers. Washington Post . Tim, G. (2013). What A share In Coke Can Teach Other Brands. The Guardian . Wahab, S. (2013). Defininh Luxury In The Hospitality Industry. Daily Mirror . Read More