Market Validation. Summary Stage 1:Validation of Market Opportunity Stage 2:Selection of Target Market Segments Stage 3:Detailed Market Segment.

Market Validation

Summary

Stage 1: Validation of Market Opportunity

Stage 2: Selection of Target Market Segments

Stage 3: Detailed Market Segment Analysis

Stage 4: Define the Customer Value Proposition

Stage 5: Validation of Sales and Marketing Plan

Stage 6: Market Testing

Stage 1: Validation of Market Opportunity

Stage 1: Validation of Market Opportunity

Objectives

Validation of Customer Requirements Requirements as perceived by customer? Are alternative options adequate?

Measurement of Market Readiness evidence of market acceptance? evidence of change from current solutions? It this an early adopter market?

Competitive Analysis Access to cost effective distribution?

Stage 1: Validation of Market Opportunity

Methodology

Primary and Secondary Research Interviews with Qualified Prospects and Industry experts. Sample of adequate size Secondary Research focus on sector v global information.

Questionnaire / Information Requirements clearly defined / relevant

Skills Required assistance of experienced sales and marketing specialists

Stage 2: Selection of Target Market Segments

Stage 2: Selection of Target Market Segments

Target Market Segments defined by product/service customer profile geographic location other relevant criteria

Stage 2: Selection of Target Market Segments

Criteria the market environment company resources/capability ROI

Customer Demand, Market Readiness Competitive Environment, access cost effective

distribution Skills Required

experienced marketing and business planning specialists.

Stage 3: Detailed Market Segment Analysis

Stage 3: Detailed Market Segment Analysis

Objectives to further validate the market opportunity; develop a ‘Value Proposition’ identify potential reference sites; information required for Sales and Marketing plan.

Methodology: interviews with 10-20 qualified prospects in each market segment

Skills Required assistance of experienced Sales, Market Research /

Business Planning specialists

Stage 4: Define the Customer Value Proposition

Stage 4: Develop a Customer Value Proposition

Required for effective messaging

Skills Required assistance of an experienced sales specialist

Stage 5: Validation of Sales and Marketing Plan

Stage 5: Sales and Marketing Plan

Pricing Model

Selling process

Sales projections

Stage 5: Sales and Marketing Plan

Pricing Model

Determine pricing model by: benchmarking against similar products; customer testing.

Skills Required experienced sales specialist

Stage 5: Sales and Marketing Plan

Selling Process

Defining the process method and cost of lead generation; prospect conversion rates conversion lead times.

Selling Costs cost of achieving an average sale for each target market

segment. Skills Required

experienced sales specialist

Stage 5: Sales and Marketing Plan

Sales Forecasts

completed for the first three years of operation;

provided by value and by number of units for each Target Market Segment;

supported by prospecting, lead time, conversion and costing schedules.

Stage 6: Market Testing

Stage 6: Market Testing

Process Commence initial selling to develop as sales pipeline. Establish reference customers Review the sales and marketing plan based on the

outcome of the initial sales activity. Skills Required

Sales and Marketing Team