If you intend to bring an innovation to market, you had better evaluate the economic potential of your idea. We advise you to do some preliminary research to measure the attractiveness of your potential market.
When an idea is close to our hearts, we often tend to overestimate its potential, especially in an unfamiliar market. But this is an illusion that can cost you dearly.
Moreover, if you delay estimating the market for your concept, you will take the risk of sticking to it even if there is no economic potential. And it will be even more difficult to accept the reality when the day comes.
The best way to assess potential is to gather a certain amount of information that will allow you to form an opinion on the matter. There's no doubt that marketing is really hard, and that's the reason that people seek professional help. You can get more information here:
You must remain objective and take into account this information with a certain detachment. This approach does not aim to prove you right but to allow you to make good decisions objectively.
Does your offer meet an immediate need or expectation?
In order for the prospect to want to buy your offer, it is preferable to meet his need. Preferably, an unresolved expectation for which he would like to have an immediate solution. People are more inclined to spend money to solve an immediate problem, rather than investing to prevent it from happening.
The best way to define this need is to observe and interview your potential customers. Whether it's in the form of a product test, an interview, or a survey, the important thing is to succeed in evaluating this need directly with the user.
The size of your potential market
To evaluate the size of your potential market, the easiest way is to first use the Internet. Today, there is a lot of information available that you just have to go and get in a few clicks. What was difficult to do 25 years ago, is now very easy to do on the internet.
Do magazines publish about your potential market?
The mere fact that magazines exist, allows us to conclude that the market also exists. This means that there are readers who are interested in the subject and are looking for answers to their needs: to acquire, to connect, to learn, to defend themselves or to feel. Behind every need, there is a potential market.
What are your competitors' prices on the market?
To situate your offer on the market, you must position yourself in relation to your competitors. You must identify what they offer and at what price. Evaluating the added value of other players in the market will give you the keys to propose an attractive offer.
If your prospect is interested in your offer, you have to keep in mind that he will inevitably compare it to others before making a decision. The customer always has a second-best solution that it is good to know in order to better position yourself and gain an advantage.
How much will you invest to win a new customer?
First of all, I advise you to focus on a market with an easily addressable customer base. The simple fact of targeting qualified contacts will allow you not to waste time and concentrate your efforts on your highest potential prospects.
How much do you estimate the cost to deliver your offer?
At this stage, several calculations must be made. The first is the cost price of your product. As soon as possible, it is important to estimate the margin you can get from your offer. This will probably also determine the means of production.
The second is the investments you will have to make to produce your offer. If you have to invest in a new factory and high-tech production processes, the situation will be very different from standard outsourcing. Without going into this extreme example, you really need to integrate all the investments you will have to make. This will be the ticket to your potential market.