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An enterprise that makes a successful product must constantly research ways of making improvements. Pressure from competitors in the same market compels businesses to adapt their product offering. Attributes of the product, such as quality, appearance or productivity, can be improved to meet the needs of the market, and these improvements are called product optimization. This process requires knowledge of the product and of the trends in the market. If the business can match the product more closely to the needs of consumers, its sales and earnings might increase.
Product optimization involves assessing competing goods or items that could be used as substitutes for the product. The advantages over competing products must be identified, and possible threats to market share from other goods or services must be considered. On the basis of this analysis, improvements can be made to the significant attributes of the product. These improvements can be assessed by testing them with current or prospective customers.
Information about the needs and wishes of customers might be the most important aspect of product optimization. The features of the product that must be optimized are those attributes that bring the most benefit to the customer. The enterprise must analyze not only the current situation in the market but also future trends. By predicting changes in taste and fashion, the business can optimize its product offering and keep ahead of competitors.
Product portfolio optimization might also be concerned with perfecting technical aspects of the products. A functioning machine that solves a problem for the customer might be further refined to become more efficient, cost-effective or user-friendly. The optimization of a product might involve more technical research and development. This research must be directed toward the needs of the customer.
The various aspects of product optimization require a precise knowledge of the target market and its needs. This might involve extensive market research to establish the desires and needs of the potential consumers. Market research can result in a more exact idea of the type of product changes that can increase customer satisfaction. The needs of the customer direct the further product adjustments and underlie the blueprint for product optimization.
Where the customer is a part of the process, the product development can be most successful. The potential for collaborative development of products has been increased by modern information technology. For example, an enterprise might use a collaborative space for an exchange of ideas and information about product development. A two-way exchange of views with customers might yield valuable information that can form the basis for further product optimization.
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