Market Validation - Product/Market Assessments

Aligning a company’s products or services with customer requirements, and leveraging a company’s unique value proposition is at the core of marketing and positioning.  Whether a company needs to measure the performance of its existing products or services, or to determine the business potential of new markets or products, a systematic and objective approach to analyzing the target market is essential.

Too often critical decisions are made based on outdated or insufficient market data, “gut feel,” or from a biased internal perspective.  Applying insights from the marketplace improves a company’s likelihood of success and long-term growth potential.  

For start-ups, identifying customers who are experiencing significant “pain” and are most likely to spend money on an unproven solution or vendor to address these issues can have a huge impact on generating revenues, finding beta accounts, or securing venture funding.  Feedback from these early adopters can also be useful in focusing product development efforts on the “must have” functionality rather than the “nice to have” features.

For established companies, understanding product position and relevance in the marketplace is the critical baseline from which strategic plans and market penetration tactics can be developed and executed.

SMG's Experience with Market Validation

Simon Management Group has undertaken hundreds of projects designed to help clients better align products and services with their target markets.  We apply a unique combination of market research and analysis to address the various product (see Technology Experience) and market (see Industry Experience) challenges faced by our clients.

We bring objectivity, anonymity, and intellectual honesty to the process of assessing markets.  Our methodologies, timelines, and deliverables are tailored to meet the unique requirements of each client.  Additionally, SMG frequently works in tandem with client team members, enabling them to hear the “voice of the market” firsthand.

Examples of our Product and Market Assessment experience include:

Venture-backed Software Company:
SMG estimated the size and near-term growth potential of a venture-backed company that was building a distributed applications management solution.  Through a combination of secondary research, a web-based market survey, and two subsequent rounds of telephone interviews with IT managers identified as prospective buyers, SMG determined that an early adopter market opportunity existed.  However, the rate of broad market adoption was projected to be slower than was anticipated in the business plan and changes to the client’s operating and financial plans were necessary.

Offshore Company Marketing a New Battery Technology: 
Our client obtained the intellectual property rights to a new battery technology from a larger enterprise in the medical devices market.  Working with the senior management team, SMG identified, evaluated, and prioritized the commercial market opportunities for the battery through a combination of secondary research and telephone interviews with industry analysts, trade association members, and businesses in several prospective markets.  During a subsequent engagement, SMG arranged and attended several business development meetings between the client’s executive team and prospects.