logo
logo
Sign in

Market Research is an invaluable tool for the success of biotech industry

avatar
Amit Jain
Market Research is an invaluable tool for the success of biotech industry

Biotechnology is used to improve industry standards, facilities, and the development of new products in a variety of sectors, from agriculture to environmental science. Biotechnology encompasses a broad range of life science-based research firms developing game-changing inventions for a variety of industries.

Though agriculture, materials science, and environmental science are important fields of study, field medicine has the greatest influence. The importance of biotechnology in the healthcare sector is evident, as it is a major player in pharmaceutical research and development.

Many biotech companies are evolving into pharmaceutical and biopharmaceutical leaders, ranging from genetic analysis and modification to the creation of new drugs. Biotech and med-tech start-ups must conduct market research to ensure that they create technologies that will be commercially viable. This is true across the board, but especially in the life sciences. Scientists and engineers who are concerned with the scientific legitimacy of their technology must also understand the needs of their consumers and end users. When innovative innovations solve a significant problem for the consumer, they are the most effective. If biotech and med-tech start-ups follow consumer demand, their products are more likely to be commercialised.

Primary research can seem premature or inapplicable for biotech and med-tech start-ups. Primary market analysis is just as relevant for these businesses as it is for any other, as long as the founders have a clear understanding of who their customer is. A common misunderstanding among biotech and med-tech start-ups is that the consumer is the end user of the product. It will be the patient with the illness or condition that the medication is intended to treat in the case of a prescription drug.

The size of a market is one of the most common pieces of information gathered by secondary market research. For example, government census reports, estimates from patient advocacy organisations, and other sources may be used to estimate the number of people who are likely to be affected by a disease.

There is a slew of organisations that collect data from a variety of industries and transform it into reports that they sell to anyone willing to pay a licencing fee. However, determining which of these reports is the most accurate and worth the often-hefty price tags can be difficult.

Even biotech and med-tech start-ups, which prefer to operate under the radar in the early stages of growth, may benefit from brand recognition research, though the results can differ. Since investors and potential partners recognise that young businesses haven't been around long enough to create brand credibility, this could really be founder awareness or Chief Scientific Officer awareness for start-ups. Instead, people's perceptions of a start-up are influenced by the reputations of the founders and lead scientists, so if they are well-known as experts in their fields, it can be a huge plus.

While this article focuses on market analysis from the perspective of a start-up, it is a process that should be continued in the product development process. The solutions chosen by an R&D team to solve a possible manufacturing challenge may not be the best solutions for the consumer or end user. The chances of success are slim without ongoing feedback from those who will eventually determine whether or not to buy the product (or recommend it to others). Biotech and med-tech start-ups that make an effort to learn from their target market on a regular basis have a much better chance of commercialization.

collect
0
avatar
Amit Jain
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more