McCombs School of Business
Knowledge

Testing the Market
Potential Customers

When selling a product, what is the most important part of the business model? Who buys the product, uses it, and puts money in the inventor's bank? The customers who will be purchasing the product are the most important part of an inventor's market approach. Instead of saying, "If you build it, they will come," the inventor should ask, "If I build it, will they come?" and "why?"

Who is the product for?
Inventors must decide exactly who will want this new product - the target market. A target market is defined by breaking up the overall market into segments, groups of potential buyers who share certain characteristics. What are their demographics? Knowing this vital information not only helps the inventor know who potential customers are, but also leads the way for all strategic marketing endeavors. Understanding how much to charge, what payments to take, what product literature should look like, and where to sell the invention all arise from knowing the customer.

Why will they buy it?
What is the unique, compelling benefit of the product? This is usually the trickiest question for technology-oriented people because they tend to think of the technology itself as the answer. The truth is that people buy products, not technologies. The correct answer to this question is a benefit, not a feature. What need does the product fill, and do prospective customers have this need? This seems obvious, but false perceptions of the market can prove a costly mistake. Inventors should survey potential customers for their thoughts on the supposed need. More than likely, the inventor will have a good idea of product potential because they saw the need for the invention in the first place. But it doesn't hurt to be cautious; maybe other people don't have the same need the inventor has projected.

Why will they buy it from you?
Is there something special about the product an inventor is offering? The inventor must set themselves apart from their competition and find the reason(s) their customers should buy from them. This is their source of competitive advantage. Is the product better looking, a better value, more personal, higher quality, smaller, lighter, more versatile, or better designed? Identify the key characteristics about the product that are highly valued by the target market and make it the reason why they buy from you

Can customers go without the product, or by buying it from somewhere else? The inventor needs to have a strong idea of why people will come to them for this new product, what makes them special. Recognizing this niche proves to be priceless when competing against others in a race to market. If one person has a better grasp of why they are special and will succeed, they will overtake their competition because others will believe in them as well.


Paper outline

Check out the Silent Timer Web site to see the product Erik took to market. Contact him with any questions.

 

 
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