In order to craft your value proposition, you need to make certain assumptions about your target market. It is important to validate these assumptions through market research techniques and analysis. In this lecture, market research experts introduce the principles of market research and analysis, including analytical frameworks such as the PEST analysis and Porter’s Five Forces.

2. Usha
Srinivasan,
Director
of
Market
Intelligence
–
MaRS
Dan
Colquhoun
–
VP
Global
Customer
Research
–
Frost
&
Sullivan

5.
Market
&
Industry
Intelligence
Understand
CompeCng
Technologies/Patents/Companies;
EsCmate
Market
size
&
share;
VerCcal/Industry
market
entry
and
potenCal
InnovaCon
Research
Develop
TesCng
Analysis
IntroducCon
Customer
Intelligence
Concept
TesCng;
Customer
Profiling
&
SegmentaCon;
Packaging
research;
Pricing;
Messaging
and
CommunicaCons
development

6.
Ques7ons
to
ask:
-­‐Is
my
technology
really
disrupCve?
If
so
what
is
it
replacing
?
-­‐Who
is
my
direct
compeCtor
at
my
price
point?
-­‐Does
my
compeCtor
have
a
diversified
porRolio?
How
to
find
the
answers:
1. Consider
patent
or
prior
art
searches
–
Public
databases
like
USPTO
or
WIPO,
or
paid
databases
like
Thomson
InnovaCon
or
Total
Patents
2. Understand
your
posiCon
in
the
“value
chain”
as
that
will
determine
your
compeCtor
3. Compare
product/technology
capability/claims:
use
product
brochures
from
trade
shows
or
product
claims
from
websites
or
even
company
annual
reports

7.
-­‐What
is
my
potenCal
market
vs
addressable
market?
(i.e.
What
you
wish
it
to
be
vs.
what
is
realisCc
?)
-­‐What
is
my
market
share
among
compeCtors?
-­‐What
is
my
market
share
in
Canada/Ontario?
1. Consult
market
reports
from
mulCple
vendors
2. Be
clear
about
the
“definiCon”
used
3. Sizing
the
market
in
publicly
traded
space
can
be
easier
than
with
privately
held
companies:
a. Bo^om
up
method
–
aggregate
revenues
of
all
players
–Tier
1,
2
or
3
–
You
are
likely
in
Tier
3
b. Use
unit
price
and
volume
of
sale
as
a
means
to
determine
market
share
of
the
company
and
total
market
size;
Sizing
based
on
potenCal
buyers
–
e.g.,
no.
of
hospitals,
no.
of
people
viewing
a
parCcular
website,
no.
of
uCliCes
etc.
c. Look
at
annual
reports,
tax
filings,
press
releases,
Tech
blogs,
product
brochures
etc.
4. Market
sizing
at
regional
levels
is
more
logical
–
NA,
EU,
Asia,
Middle
East
5. UlCmately
make
realisCc
assumpCons!!

8.
Should
I
be
selling
this
to
the
DOD
instead
of
healthcare?
Are
barriers
to
entry
low
in
certain
verCcals?
Less
regulaCons,
price
agnosCc
?
Could
one
industry
be
my
first
entry
point
before
I
tackle
another
verCcal?
Should
I
target
government
or
the
private
sector?
1. Understand
the
verCcal
markets
of
your
compeCtors
and
target
least
compeCCve
verCcals
2.
Are
there
any
investments
happening
in
a
parCcular
sector,
government
agency
or
country
that
could
be
an
advantage?
a.
Afer
9/11
and
other
global
incidences
–
increase
in
security
technologies
b.
Cleantech
-­‐
Ontario’s
Green
Energy
Act
and
FIT
program
in
bringing
in
investors
into
the
province;
China
invesCng
$5
B
in
cleantech
in
next
3
years

9. Early
stage
development
of
a
new
product
and
is
used
to
uncover
reacCons
to
the
basic
idea.
• Launching
a
new
product
or
exisCng
product
variant
• Changing
the
composiCon
of
a
product
Can
be
conducted
using
qualitaCve
or
quanCtaCve
methodologies,
or
a
mix
of
both.
The
choice
of
methodology
is
typically
a
funcCon
of
several
variables
including
the
stage
of
development,
and
the
type
of
end-­‐
user.
Ideals
• ReducCon
of
bias
associated
with
halo
effects
• The
sample
should
represent
the
audience
for
the
product
Efficient
Approaches
• Small
scale
focus
group
using
advisory
board
members
or
other
interested
parCes
(hint:
make
sure
they
are
unbiased)
• On-­‐line
capabiliCes
are
inexpensive
and
accessible
(hint:
tap
a
researcher
or
body
of
knowledge
for
best
pracCces)

10. SegmentaCon
can
be
completed
on
almost
any
data
that
relates
to
the
customer,
but
should
answer:
Level
of Business
• Who
are
the
best
customers
now?
Analysis Application
• Which
groups
or
segments
represent
the
greatest
Attitudes
(Why)
Complex Strategic
opportunity
for
growth?
• Are
there
pockets
of
customers
out
there
wherein
the
Needs
(Why)
product
is
more
favorably
perceived?
Behavior
(What,
when,
how)
Ideals
Price/Channel
(Where)
• The
customer
segments
exist
(i.e.,
not
an
arCficial
or
hoped
for
construct)
Geography
(Where)
• The
segments
targeted
can
be
efficiently
reached
Simple Tactical
Efficient
Approaches
• Secondary
research
or
using
exisCng
data
(e.g.,
SIC
groups)
• Use
compeCtor
profiles
of
their
customers
to
construct
your
own
segments
• On-­‐line
capabiliCes
are
inexpensive
and
accessible
(hint:
tap
a
researcher
or
body
of
knowledge
for
best
pracCces)

11. • OpCmized
packaging
should
be
based
on
an
understanding
of
customer
needs
(e.g.,
a
product
that
will
be
opened
in
a
surgical
theatre
by
end-­‐users
wearing
gloves).
• Pricing
reflects
the
relaCve
compeCCve
set,
the
margin
required
and
the
decision
as
to
whether
to
price
for
share
or
price
for
margin.
Ideals
• Pricing
data
reflects
actual
purchasing
condiCons
• Packaging
research
encompasses
aestheCcs
as
well
as
usability
Efficient
Approaches
• Focus
groups
with
“volunteers”
(hint:
don’t
run
these
yourself
as
you
are
biased)
• Produce
inexpensive
packaging
schemaCcs
using
computer
graphics
tools
• On-­‐line
capabiliCes
are
inexpensive
and
accessible
(hint:
tap
a
researcher
or
body
of
knowledge
for
best
pracCces)

12. • Determine
the
opCmal
personality
and
posiConing
for
your
brand
• Ensure
that
the
value
proposiCon
is
relevant,
meaningful
and
differenCated
• Determine
the
opCmal
way
to
express
the
proposiCon
to
the
end
customer
• Ensure
that
the
brand
and
value
proposiCon
are
perfectly
aligned
to
perform
well,
and
withstand
challenges
in
the
marketplace
Ideals
• The
posiConing
strategy
reflects
key
category
purchase
drivers
and
leverages
the
best
properCes
of
the
product
• The
message
can
be
efficiently
and
effecCvely
delivered
Efficient
Approaches
• Inventory
the
key
product
a^ributes
(hint:
keep
it
simple)
• Collect
and
audit
all
data
sources
around
the
brand,
category
and
customer
to
“leverage-­‐able”
insights
• The
insights
are
combined
to
develop
or
inspire
a
range
of
potenCal
brand
Ideas

13.
Is
there
really
a
market
need
here?
Whether
the
answer
is
a
“Go”
or
“No
go”
understanding
your
market
/
customer
/
industry
dynamics
will
be
key.

14.
Tips
to
be
on
top
of
your
industry
:
1.
A^end
industry
events/trade
shows
2.
Subscribe
to
relevant
industry
journals/
newsle^ers
and
even
contribute
arCcles
3.
Track
industry
analysts
–
through
research
publicaCons,
blogs
etc.
4.
ParCcipate
in
research
industry
events
such
as
MRIA
(Market
Research
and
Intelligence
AssociaCon),
ESOMAR
(European
Society
of
MarkeCng
and
Research);
MRA
(Market
Research
AssociaCon).

15. Usha Srinivasan PhD
Program Director
Business Acceleration Program
MaRS Discovery District
T 416-673-8144
E usrinivasan@marsdd.com
W www.marsdd.com
pg 15