ABSTRACT
This chapter addresses understanding the market and translating that into product needs, and the team activities needed to insure success. One of the most common mistakes that is made in market research by development teams is the lack of market testing with the right customer base. Market research data is limited in scope. The solution is to provide multiple market research efforts occurring at appropriate times during the product development cycle. In order to understand market penetration, one must first understand market segmentation. Market segmentation is a key activity that allows the correct interpretation of the market potential. Once a top product is developed, getting the market to understand the competitiveness of the new design is difficult to do. Positioning the product correctly in the market is a function of features selected, price, market reputation and advertising. One advantage the larger companies have in launching a new product is market presence and reputation.
