Understanding the Market and Market Analysis
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1 Understanding the Market and Market Analysis Surya Raghu WIPO EIE Project NaJonal Workshop 1 Bangkok, Thailand June 12-16, 2017 Bangkok, June 12-16, 2017 S. Raghu 1
2 MoJvaJon TTOs and Inventors should have some idea of markets.. 2
3 OUTLINE 1. Knowing the customer and market 2. Knowing the Competition and Entry Barriers 3. Business Model Development 3
4 The Product Is Your Idea a Solution to a Problem or a solution looking for a problem? Bangkok, June 12-16, 2017 S. Raghu 4
5 Knowing your Customer Customer vs Consumer? 5
6 Consumer Behaviour "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." - excerpts from Dr Lars Perner University of Southern California) 6
7 Consumer Behavior External Factors Social Culture Family Business Economic External Factors Internal Factors Decision Internal Factors Personality Needs MoJves AZtude PercepJon Learning 7
8 Why Study Consumer Behavior? Marketing strategy Towards better marketing campaigns Public policy Recycling, phones and driving, smoking, alcohol consumption, certain medications, pollution, etc. Social media marketing Getting ideas across to people through social media A better consumer Educating the consumer 8
9 Knowing Your Market The market analysis is attempting to answer the questions: - To whom? (Who is the target market) - How many? (Size of market) - At what price? ($ Value of the market) These are simple questions, with often complex answers and a high level of uncertainty. Bangkok, June 12-16, 2017 Adapted from C Moody Isis S. Enterprise Raghu
10 Market Pull and Technology Push (Market pull - technical solujon for an exisjng problem) 3nethra An intelligent pre- screening Ophthalmology device hap://forushealth.com/forus/products Bangkok, June 12-16, 2017 S. Raghu 10
11 Market Pull and Technology Push Technology push? (new or changed market)) CompeJJon Unknown! Bangkok, June 12-16, 2017 S. Raghu 11
12 Product Type and Market Size Custom products (special electronic equipment, jewelry) - mostly contract jobs Small volume ? Depends on industry Large volume products 50,000 50,000,000? 12
13 Market Segments Demographics Geographics Behavioral 13
14 Market Demographics Forbes,
15 Market Demographics Demographic Segments Institutional or individual users Age group - Gen Y, Gen X, Baby Boomers and Seniors, males or females or both) Tech savvy? Geographic location village, small town, city, country. Value of your product to money, space and time. 15
16 Geographical Distribution of Market hap:// chapter htm Bangkok, June 12-16, 2017 S. Raghu 16
17 Personality Values AZtudes Lifestyles Interests Behavioral Segments (Psychographics) 17
18 Market Penetration What percentage of market do you plan to capture? What is the entry barrier? How will you prevent competition from getting into your space? 18
19 Market PenetraJon Total Market Size Serviceable Market Size Target Market Market Share 19
20 The First Customer First customer / First adopter? Route (access) to the first customer? Bangkok, June 12-16, 2017 S. Raghu 20
21 Entry Barrier CompeJJon You 21
22 Knowing your CompeJJon 22
23 Business Model New idea or technology Business Model Economic Benefit Bangkok, June 12-16, 2017 S. Raghu 23
24 Why New Products Fail hap:// Bangkok, June 12-16, 2017 S. Raghu 24
25 Summary: The Market Your Idea (solution to a problem) --à Your Product? Why does the market need this? (Market pull (technical solution) or Technology push? (new or changed market)) Who will buy it (customer profile age group, profession, field of application, decision levels, geographical distribution?) How many people/organizations will buy it? (Market size?) Bangkok, June 12-16, 2017 S. Raghu 25
26 Exercise 26
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