Market Validation

Definition: The process of introducing the product to the market, assessing market approaches, and obtaining customer feedback.

Objective: The objective of the market validation step is to test the receptivity of the market to the product and to compare expectations of the business plan with the realities of the marketplace.

Product: The product of this step is a quantitative analysis of limited sales performance and a qualitative analysis of customer response.

Marketing Activities: The marketing activities common to this step are those necessary to obtain a quantitative and qualitative market response to the product.

During the strategic marketing plan step, the following activities must be completed:

• Conduct limited product sales

• Quantify the volume, rate, and demographics of sales

• Design and implement a customer survey

• Analyze customer feedback (price, design, function, packaging, delivery)

• Transmit design modifications to technicians

Marketing Information: Completion of the marketing validation step usually will result in a verification of the validity of the enterprise's marketing approach for the product and/or identification of recommended modifications.

Assessment:

Have you conducted limited product sales?
Have you quantified the volume, rate, and demographics of sales?
Have you designed and implemented a customer survey?
Have you analyzed customer feedback (price, design, function, packaging, delivery)?
Have you analyzed your competitor's response?
Have you incorporated marketing modifications into the market plan?
Have you transmitted design modifications to technicians?

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.