Importance of Competitive Intelligence in Product Development
The success and growth of any business is directly proportional to the innovative product development strategies adopted by it and is a renowned fact in the industry. Understanding the importance of constant product innovation in a competitive business environment is critical for any business that wants to succeed and grow.
But at the same time the risk that arises from investment for the development of new product such as outright rejection by consumers of the service or product developed also cannot be overlooked. This is where the role of competitive intelligence comes into play in not only reducing the costs but also in identifying the risks that comes along with the development of a new product.
Consumer Needs and Competitive Intelligence
Competitive Intelligence (CI) when undertaken by any organization helps to provide valuable insights about the needs, psyche of the consumers along with other vital answers for the successful and smooth launch of the new product prior to allotting resources for the same.
- Any unsatisfied needs of consumers?
- In what way will the need product developed help to meet the unsatisfied need of the consumers?
- Is there a need for developing different product offerings for various market segments?
- What pricing strategy needs to be adopted?
- Questions pertaining to product positioning and marketing strategies.
Though competitive intelligence is not a onetime activity but a regular and constant effort, it comes with certain key tools which help to ascertain answers to the above mentioned questions.
Competitive Intelligence Tools for Successful Product Development
The following key competitive intelligence tools when adopted by a business organization will ensure a smooth and successful product development.
1. Listening to consumers
Lending a patient ear to the voice of consumers is paramount for the success, growth and performance of any business. There are various ways by which a company can understand and listen to their consumers such as the following:
- Surveys to ascertain information on consumer satisfaction
- Feedback forms
- Inputs obtained from the sales team
- Consumer analytics.
By listening to consumers, an organization not only obtains information about their own product or service, but also valuable inputs which aids in the better development of the product along with the direction undertaken by competitors.
2. Analysis of the Sales Performance
The best inputs a product development team can hope to get are by undertaking a thorough analysis of the sales performance. By undertaking intense analysis of the sales performance, a company can ascertain information not only about its own strength and weakness but also about the competitors.
This sales analysis is done by talking to the customers who have influenced the sales and the consumers who did not influence the sales. This analysis is undertaken to thoroughly grasp the reasons for –
- Drop in sales
- To gain insight about the specific needs of the consumers
- Whether the company’s current offering aims to meet or not meet the real needs of the consumers
The sales analysis so done enables an organization in altering its pricing, offers, sales process, positioning, timing of product introduction in the market, etc.
To sum it all, competitive intelligence plays a key role in providing valuable insights about what the market craves and desires that acts as a guiding source for new product development.
iResearch Services specializes in providing How Competitive Intelligence Helps in Devising Better Marketing Strategy and have helped numerous organizations in gaining clear insights and vital information about the proposed new product.