Market Need Assessment

Definition: The process of determining whether the concept demonstrates superior ability over current solutions to meet a market need.

Objective: The objectives of a market needs assessment is to identify a potential market for the concept, estimate the market size and determine a preliminary value of the product.

Product: The product of this step is a short summary of information, from trade journals, data bases, and interviews, which follows the marketing section of a standard business plan format.

Marketing: The marketing activities common to this step are those activities necessary to demonstrate the product is unique and sustainable in a competitive marketplace.

During the conceptual phase the following marketing activities must be completed:

• Identify three unique features or benefits of the product

• Identify the competition

• Establish customer requirements for the product

• Identify potential market barriers

• Identify market distribution channels

• Identify product pricing criteria

Marketing Information: Completion of the conceptual marketing needs assessment usually will result in a rationale of why the product will receive a positive market response, gross estimates of the market and its segmentation, a simple explanation of how the product will be marketed, and an estimated price for the product.

Assessment:

Have you assessed the needs of the market?
Do you know the product uniqueness?
Do you know the product competition?
Do you know the customer requirements?
Have you identified the barriers to market entry?
Have you identified distribution channels?
Do you know the pricing criteria?

Return to The Goldsmith Commercialization Model

The Arkansas Small Business Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran’s status, or disability.