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Market Validation

Market Validation. Summary. Stage 1: Validation of Market Opportunity Stage 2: Selection of Target Market Segments Stage 3: Detailed Market Segment Analysis Stage 4: Define the Customer Value Proposition Stage 5: Validation of Sales and Marketing Plan Stage 6: Market Testing.

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Market Validation

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  1. Market Validation

  2. Summary • Stage 1: Validation of Market Opportunity • Stage 2: Selection of Target Market Segments • Stage 3: Detailed Market Segment Analysis • Stage 4: Define the Customer Value Proposition • Stage 5: Validation of Sales and Marketing Plan • Stage 6: Market Testing

  3. Stage 1: Validation of Market Opportunity

  4. Stage 1: Validation of Market Opportunity Objectives • Validation of Customer Requirements • Requirements as perceived by customer? • Are alternative options adequate? • Measurement of Market Readiness • evidence of market acceptance? • evidence of change from current solutions? • It this an early adopter market? • Competitive Analysis • Access to cost effective distribution?

  5. Stage 1: Validation of Market Opportunity Methodology • Primary and Secondary Research • Interviews with Qualified Prospects and Industry experts. • Sample of adequate size • Secondary Research focus on sector v global information. • Questionnaire / Information Requirements • clearly defined / relevant • Skills Required • assistance of experienced sales and marketing specialists

  6. Stage 2: Selection of Target Market Segments

  7. Stage 2: Selection of Target Market Segments • Target Market Segments defined by • product/service • customer profile • geographic location • other relevant criteria

  8. Stage 2: Selection of Target Market Segments • Criteria • the market environment • company resources/capability • ROI • Customer Demand, Market Readiness • Competitive Environment, access cost effective distribution • Skills Required • experienced marketing and business planning specialists.

  9. Stage 3: Detailed Market Segment Analysis

  10. Stage 3: Detailed Market Segment Analysis • Objectives • to further validate the market opportunity; • develop a ‘Value Proposition’ • identify potential reference sites; • information required for Sales and Marketing plan. • Methodology: interviews with 10-20 qualified prospects in each market segment • Skills Required • assistance of experienced Sales, Market Research / Business Planning specialists

  11. Stage 4: Define the Customer Value Proposition

  12. Stage 4: Develop a Customer Value Proposition • Required for effective messaging • Skills Required • assistance of an experienced sales specialist

  13. Stage 5: Validation of Sales and Marketing Plan

  14. Stage 5: Sales and Marketing Plan • Pricing Model • Selling process • Sales projections

  15. Stage 5: Sales and Marketing PlanPricing Model • Determine pricing model by: • benchmarking against similar products; • customer testing. • Skills Required • experienced sales specialist

  16. Stage 5: Sales and Marketing PlanSelling Process • Defining the process • method and cost of lead generation; • prospect conversion rates • conversion lead times. • Selling Costs • cost of achieving an average sale for each target market segment. • Skills Required • experienced sales specialist

  17. Stage 5: Sales and Marketing PlanSales Forecasts • completed for the first three years of operation; • provided by value and by number of units for each Target Market Segment; • supported by prospecting, lead time, conversion and costing schedules.

  18. Stage 6: Market Testing

  19. Stage 6: Market Testing • Process • Commence initial selling to develop as sales pipeline. • Establish reference customers • Review the sales and marketing plan based on the outcome of the initial sales activity. • Skills Required • Sales and Marketing Team

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