Market Research
Evaluating the market potential of a new technology is critical to successful commercialization, yet it is often overlooked until too late in the process. Without good information and analysis, business decisions become mere guesswork. On the other hand, a good market assessment will drive the development of strong commercialization and business plans, help raise capital, and even assist in negotiating favorable terms for a licensing deal.
The term "market assessment" means different things to different people. In general, it is a process of gathering and analyzing information relevant to a new technology's commercial potential. The process itself may range from a few phone conversations with knowledgeable acquaintances to a $50,000 telephone survey and sophisticated statistical analysis. Usually, however, thorough and cost-effective market research falls somewhere in between.
A cornerstone of good market assessments is objectivity in gathering the data, and, more importantly, in analyzing and reporting it. Usually, finding information is not difficult, though finding specific enough information can be time-consuming and sometimes expensive. Objectively analyzing and interpreting the data is another matter, however, and this is where technology entrepreneurs can have trouble, because they have so much invested in their "baby." For exactly this reason, it is wise to perform enough market research early in the idea-development process to ensure the commercial potential warrants proceeding. This market research may be most useful and valuable if it is conducted by an independent party.