Marketing & Market Research A Crucial Part of Product Development
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1 Marketing & Market Research A Crucial Part of Product Development
2 Who is this guy?
3 Questions Who are Oculus rift s customers? Is Oculus trying to make the best virtual reality headset in the world? Who are the major entities in the ecosystem of game development? Why was Oculus successful?
4
5 "My goal actually wasn't to make something," he explains. "It was actually just to buy something - I assumed there must be something out there that was really good that I could use for gaming."
6
7 Kickstarter - Awesome, right? Do your legal homework Claw Hanging Systems On November 21, 2012, 3D Systems filed a patent infringement lawsuit against Formlabs and Kickstarter for infringing its 3D printer patent US 5,597,520, Simultaneous multiple layer curing in stereolithography. Formlabs had raised $2.9 million in a Kickstarter campaign to fund its own competitive printer.
8 You already have marketing experience Products/Svcs No one buys I don t buy I do buy
9 "Because the purpose of business is to create a customer, the business enterprise has two and only two basic functions: and -Peter Drucker
10 Group Activity 1 Discuss the two basic functions of a business Share the two functions with the class
11 "Because the purpose of business is to create a customer, the business enterprise has two and only two basic functions: marketing and innovation -Peter Drucker
12 What is marketing?
13 Marketing is... the whole business seen from the point of view of the final result, that is, from the customer's point of view.
14 Group Activity 2 Discuss the potential customers for your product/service Consumers? Businesses? Why would a person or entity purchase?
15 Impact on final product Idea Market Technical Feasibility Need Design Definition ROI Development Deal Ramp Up Extensions Design Continuum Customer learning in parallel to product development
16 Group Activity 3 What are the alternatives? Price points of competitive products/services? What research can kill or validate an idea?
17 Existing Products & Prior Art Is your product/service really new, or did somebody else already think about it? Look on internet and (google) patents Check what similar products or product aspects already exist using internet and other searches If somebody thought about it, did he/she try to market it? If not, why not? If yes, how did it go? Know what is already out there!
18 Market research is used to determine idea viability and create marketing plans What? Verify need for product Determine market size: How big is my idea? Choose target customer: Where do we focus first? Understand target customer Potential Market Available Market Target Market Penetrated Market How? Primary Methods: Surveys, Focus groups Risks: Question & facilitator bias Secondary Methods: Reports and studies Risks: Report or study bias
19 Group Activity 4 What are three questions that could be addressed through primary market research? How will you find potential customers to interview?
20 Technology Adoption Lifecycle Relative % of customers Early adopters Innovators, technology enthusiasts The chasm Early majority pragmatists Late majority conservatives Laggards, skeptics Customers want technology and performance Customers want solutions and convenience Time
21 Group Activity 5 Let s assume that customers will buy your product. Does that mean you should start a business to sell to them?
22 Competitive Landscape Threat of New Entrants Barriers to entry Economies of scale IP/Trade secrets Supplier Power Concentration of suppliers Volume of suppliers Ease of vertical integration Competitive Rivalry # & size of competitors Strategic differentiation Industry growth rate Buyer Power Bargaining leverage Buyer price sensitivity Buyer volume Threat of Substitutes Switching Cost Likelihood of substitutes Product differentiation
23 The Challenge Go talk to your earlier adopters Ask them if they would buy your product (show pictures or prototype demo video) Ask them what they like and dislike
24 Questions?
25 Rockstar challenge: Conduct secondary research, compose a primary research plan, and then execute. A null hypothesis needs to be tested. Conduct secondary research and create a primary market research plan 1. Secondary market research summary (1 page max) List of 3-5 information sources and valuable information you learned, either qualitative, i.e. mothers really like this product, or quantitative, 20MM women in Africa use this product. Secondary research need not be exhaustive. The goal is to gain a basic market understanding to aid in creating your primary market research plan. 2. Primary market research plan (1 page with three sections) Target Customer Selection. Select target customer and provide rationale. This will be the demographic you will survey. Do not interview your grandparents for your energy beverage idea. Bias Elimination. Question and proctor plan to ensure bias elimination. Study Purpose. Selection of a null hypothesis and explanation of particular choice. Conduct primary market research 1. Responses and statistical analysis in MS Excel format 2. 1 page summary of plan execution, responses, and results
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