Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

Is market research necessary for a new product not yet prototyped?

A client of mine has invented a consumer product which is now in the development stage. There are competitive products on the market yet they are more "hobby" or homemade solutions. His product is a huge upgrade in this segment. He's an engineer.

26 Replies

Steve Owens
4
0
Steve Owens Entrepreneur • Advisor
Finish Line - A Better Way for Small Companies to Develop Products
Market Validation is the first step to any product development processes.

If your a hammer, everything looks like a nail.

No surprise the engineer does not want to do marketing.

BTW - I am an engineer too.
Eugene Gekhter
2
0
Eugene Gekhter Entrepreneur
CEO, Memorable. Founder, SharePay.
Best $500 your client will ever spend...
Design a survey with SurveyMonkey and use their audience tool to distribute the survey based on the consumer product's target demographic.

You will know with statistically significant results whether your assumptions are correct.

https://www.surveymonkey.com/mp/audience/audience-pricing/
Ken Berkun
1
0
Ken Berkun Entrepreneur
Entrepreneur
Per above, not even an option. Must be done. Otherwise who knows what kind of rat hole you'll be going down. And I am sceptical of anything that claims to "revolutionize" anything. That's a pretty good hint that he doesn't really know what's going on. Revolutions happen, but not that often.
William Seidel
0
0
William Seidel Entrepreneur
President & CEO, America Invents
The purpose of product development is not to develop new products.The purpose of product development isto obsolete the competition. He can'tobsolete the competition if he doesn't know it. (Most engineers, inventors, and PD professionals don''t know this because it is out of their field.) Smart companies provide the opportunities for engineers to develop and invent the products to fit the need. Not smart companies are enamored with the idea and don't see the value of anything else.
Carlen Young
0
0
Carlen Young Entrepreneur
Co-Owner at DiviniTree Yoga & Art Studio
If he is an engineer then it should be easy for him to get the value of market research. You need to put together a model to see how large your market is and what price points will capture what areas of that market before developing a prototype to fit the most profitable segments of the available market. If you have a high end market then you can add more. If you have a low end market it may make since to leave a few things off, or cheaper, with the original design. You can wing it here. Many do. But macro level data can be surprising at times and lead to fundamental changes in unexpected ways and it saves money and time to have this insight early on that later on. We appreciate you, Carlen Young Co-Owner DiviniTree Yoga & Art Studio (707) 235-6967
Michael Fruhling
0
0
Michael Fruhling Entrepreneur
Founder/Owner BFS Innovations, Inc.
As others have said, research is valuable, especially at the earliest stages. Look at research as a way of understanding whether or not the opportunity is real. It is far easier (and less expensive) to make adjustments where needed early on than later.Research won't answer every question, but it will at leasthelp answer the fundamental questions related to need-gap and solving for it.
Kelly Kuhn-Wallace
1
0
Kelly Kuhn-Wallace Entrepreneur • Advisor
Marketing and Strategy Consultant
The market research here would validate (a) if consumers are interested in a commercial product that replaces their existing solutions (b) if consumers will pay for that product and (c) how much they will pay (early read). It's good to know these things prior to investing time and money on a prototype.
Ken Steinberg
0
0
Ken Steinberg Entrepreneur
Innovator and Serial Market Disrupter
I am not going to go with the crowd....having build numerous products and brought them to market through various avenues (direct, channel, license, ASOTV), given the present crowdfunding options, market research can sometimes be "baked in" to the to-market strategy.

I think it depends on the exit strategy and how the inventor wants to build value. Here is what I do EVERY time I think I have something of value:
  1. Google the idea using various keywords (obvious)
  2. Search Google Patents
  3. If there is a product in the space, look at the pricing and features. If I am going direct, make sure I can make a competitive (or better) produce with 4x uplift headroom (i.e I can make it for $1 so it can sell for $4 retail)
  4. If I am licensing, go introduce the product to the Dir of Product Management and let the licensee decide if there is value.
  5. if I am going to openly compete, crowdfund it to determine market value and get some non-diluting operating capital
Sure there is more to do, but he/she should be able to do this exercise with an advisor, learn a ton, and do a decent product-related market eval.

The only caveat is you can't drink your own Koolaid. If you can differentiate the product, walk away.
Dennis Charlebois
0
0
Dennis Charlebois Entrepreneur
VP Product Operations at Hexis Cyber Solutions, Inc.
VCs care about the market; size growth, competitive intensity, segmentation, etc. if you are planning on getting money from institutional investors you'll need to do this.
Joe Dew
3
0
Joe Dew Entrepreneur
Product Management - eCommerce, marketplaces, and machine learning
I disagree with the sentiment that market research is always valuable. It depends. There are a lot of products and concepts that would never "survive" market research. Imagine trying to do market research on Twitter before it was launched. No one would understand it or feel a need for it. What exactly is the "market" for Twitter? Hard to say because it's a revolutionary product.

In fact, I've seen cases where market research takes you down the wrong path. That's because most people don't really know what they want or they can't succinctly describe what hasn't yet been built. And we know through tons of data analysis that what people say vs. how they actually behave are very different things.

If the product is already built, put it out there in the market and learn what happens. Real customers are the best way to understand product market fit.
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?