A good product idea alone is not enough. It is crucial whether this idea can also function in the long term. The market analysis plays a central role. In this guide, you will learn which four essential questions you need to ask yourself to check the market viability of your product idea and precisely define your target customer group.
Key Insights
- The typical target customer group must exist.
- This group should be represented to a sufficient extent so that revenues can be generated.
- The target customer group must be able and willing to pay the necessary price.
- The market must be realistically reachable.
Step-by-Step Guide to Market Analysis
1. Does the typical target customer group exist?
Before taking further steps, it is important to determine if your target group even exists. Ask yourself questions like: Who are the users of your product? Are there already similar products, and if so, who are their buyers?
Here is an overview of what you should consider in this process.
2. Is the target customer group sufficiently represented?
The next question is whether the customer group is present in sufficient numbers to generate relevant revenues with them. Use statistics and market research to find out how many potential customers there are in your target market.
3. Is the target customer group willing to pay the price?
This is a crucial question: Is your target group willing and able to pay the required price for your product? Analyze the current market and the price sensitivity of potential customers. Different pricing strategies can help determine whether your target group can be involved in the purchasing process.
4. Where can you find your target customer group?
The last question is of great importance for future marketing strategies: Where can you even reach your target customer group? Look for the best channels and platforms to address your target audience. Consider which media or social networks are most effective in promoting your products.
Summary
An effective market analysis of your target customer groups is essential to ensure the success of your product idea. Ask yourself the four key questions revolving around the existence, relevance, willingness to pay, and reachability of your target group. A careful analysis in these areas will help you adjust your marketing strategy accordingly and make your product offerings more effective.
Frequently Asked Questions
How do I find my target customer group?Research and market analysis are key. Use statistics and analyze digital channels.
Why is it important to check willingness to pay?It helps you understand if your pricing and value proposition meet customer expectations.
What if my target customer group is not sufficiently represented?Then you should either expand your target group or adjust your product idea.
How do I analyze the relevance of my target customer group?You can use online surveys and interviews or refer to statistics.
How personalized should I make my approach?The approach should be tailored to the specific needs and desires of your target audience.
