Goldsmith Technology Commercialization Model
Step 2: Market Needs Assessment
Assuming all things are still positive, the next step is to investigate a marketing concept for the product. This step is called the Market Needs Assessment. The questions are straightforward and simple: who will buy the product, how many will they buy, and how much will they pay? Discovering this information is not as simple as asking the questions. At this level of analysis, the information comes primarily from secondary sources such as trade journals, periodicals, existing market studies and electronic data. The permissible margin for error at this level is large. This activity is designed more to qualify the market opportunity than quantify it at this point in the process. The purpose here is to develop a level of confidence about the marketability of the product.
Definition: The process of determining whether the concept demonstrates superior ability over current solutions to meet a market need.
Objective: The objective of a market needs assessment is to identify a potential market for the concept, estimate the market size and determine a preliminary value of the product.
Product: The product of this step is a short summary of information from trade journals, data bases, and interviews which follows the marketing section of a standard business plan format.
The marketing activities common to this step are those necessary to demonstrate that the product is unique and sustainable in a competitive marketplace.
During the conceptual phase the following activities must be completed:
- Identify three unique features or benefits of the product
- Identify the competition
- Establish customer requirements for the product
- Identify potential market barriers
- Identify market distribution channels
- Identify product pricing criteria
Milestones: Background research materials
Funding Sources: Personal finances, family and friends
Marketing Information: Completion of the conceptual marketing step will usually result in a rationale of why the product will receive a positive market response, gross estimates of the market and its segmentation, a simple explanation of how the product will be marketed, and an estimated price for the product.
Have you assessed the needs of the market?
Do you know the product uniqueness?
Do you know the product competition?
Do you know the customer requirements?
Have you identified the barriers to market entry?
Have you identified distribution channels?
Do you know the pricing criteria?