At TACK10, we frequently see individuals ready to move forward with an idea for a new product or service without conducting market research first. This is a disservice to the idea, to the time and the resources that an individual will invest in bringing their idea from concept to a marketable product or service. Research done at the outset can save a lot of time and frustration later on and the information gathered could go a long way in the potential for market success.
Outlined below are the important questions to ask and research to complete before launching an idea.
Is there a market for your idea?
Is your idea something that has mass appeal? In order for a new idea to become a successful business, it must either have appeal to a small percentage of the general population, or be something that a large number from a specific segment of consumers would want. I.e. if you have developed a product for swimmers, you have already segmented your audience. For your product to be successful, it would need to appeal to a large percentage of swimmers. To determine whether there is an existing market for your idea, conduct research in the following areas:
1. Size of the industry sector
Look to big data to determine the total size of the industry your product or service falls within and where money is currently being spent within that sector. There are a number of industry reporting tools that can be leveraged to access this insight within the geographic region of interest.
– Euromonitor International
– First Research
– Market Research
2. Pain points within the industry
Your business will have the greatest chance of success if you remove or reduce a pain point that impacts consumers. Your idea has likely been developed to solve a pain point that you have identified, so research can be leveraged to validate the prevalence and severity of the issue to estimate whether consumers will be willing to invest in your product or service to remove or reduce the impact of the issue.
– Online search
– Consumer surveys
– Focus groups
3. Industry trends
It is important to monitor trends in the industry of interest to identify activities that could affect how you bring your idea to life. This warrants ongoing research throughout your progress and we recommend setting up alerts so that you are made aware of key activities and new trends in your industry.
– Google Alerts
After identifying that there is a market for your idea, defining your target market and determining how you will best market to your desired audience is key to success. Next Monday, TACK10 will look at how to define and find your target market.