+2 votes
in Startup Ideas by

If we want to start a product, how do we check the demand for that product?

Brainy Team receives this question from the google survey forum from Athar Tahir.

3 Answers

+1 vote
by Professional (616 points)

What is Market Demand?

Who wants to purchase a product? what is the demand for that product in the market? how willing consumers are to spend a certain price on a particular good or service? increase of market demand directly proportional to the price. means, demand increases so the prices also increase. 

But. Your question is:

How to check market demand?

Not any single-line answer. But 3 major techniques I can think about know.

  • Surveys
  • Experiments
  • Observations

Surveys

Post surveys about products, industries and services on social media. Send the survey in an email. Sometimes we need to use different methods. During 1 of my startup, I visit 100s of factories for months to ask questions. I record audio of the meetings (with permission). Then I compile all data into excel sheets. This will happen when you are focusing on B2B Business service or product. For B2C, survey emails and social media polls are enough. 

Experiments

Don't make the complete product at the start but make POC (Proof of concept). Or make a sale on a commerce platform product to see if users are attracted to that product or not. For websites and mobile apps, we mostly use prototyping tools like Figma or Adobe XD to make an application prototype and then show that prototype to our potential users. You can show these prototypes during your survey interviews as well. 

Observations

Just look around on social media and people in your social circle.  Observing trending topics and products on sites like Twitter and Pinterest. Read local newspapers and other publications. 

Conclusion 

So there is not any ninja technique. What I recommend is, observing and doing surveys. On basis of surveys make your POC and Prototypes and show them to potential clients. and observe their responses again also add new observations in your experiments.  

0 votes
by Professional (677 points)

The five determinants of demand are:

  • The price of the good or service
  • The income of buyers
  • The prices of related goods or services—either complementary and purchased along with a particular item, or substitutes bought instead of a product
  • The tastes or preferences of consumers will drive demand
  • Consumer expectations about whether prices for the product will rise or fall in the future
To read more, please check the following website

0 votes
by Professional (598 points)

There are some things I do for myself. Because I am lazy, I do most things online.
So you can use the following ideas to get some stats for product demand.

1. Find out is it in trend?

Use the google trends tool and do a search for keywords related to your product. Here google analyzes and generates a report for last month's search history for that keyword.
https://trends.google.com/

2. Find out your competitor?

Do research on other companies are their companies in the market who already doing that. There is a very simple way to do that, Google search for your product (or a similar/generic product), and you will find out if other companies are doing the same thing and are they in demand.

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