Market Validation

Summary Stage 1: Validation of Market Opportunity Stage 2: Selection of Target Market Segments Stage 3: Detailed Market Segment Analysis Stage 4: Define the Customer Value Proposition Stage 5: Validation of Sales and Marketing Plan Stage 6: Market Testing

Stage 1: Validation of Market Opportunity

Stage 1: Validation of Market Opportunity Objectives Validation of Customer Requirements Requirements as perceived by customer? Are alternative options adequate? Measurement of Market Readiness evidence of market acceptance? evidence of change from current solutions? It this an early adopter market? Competitive Analysis Access to cost effective distribution?

Stage 1: Validation of Market Opportunity Methodology Primary and Secondary Research Interviews with Qualified Prospects and Industry experts. Sample of adequate size Secondary Research focus on sector v global information. Questionnaire / Information Requirements clearly defined / relevant Skills Required assistance of experienced sales and marketing specialists

Stage 2: Selection of Target Market Segments

Stage 2: Selection of Target Market Segments Target Market Segments defined by product/service customer profile geographic location other relevant criteria

Stage 2: Selection of Target Market Segments Criteria the market environment company resources/capability ROI Customer Demand, Market Readiness Competitive Environment, access cost effective distribution Skills Required experienced marketing and business planning specialists.

Stage 3: Detailed Market Segment Analysis

Stage 3: Detailed Market Segment Analysis Objectives to further validate the market opportunity; develop a ‘Value Proposition’ identify potential reference sites; information required for Sales and Marketing plan. Methodology: interviews with 10-20 qualified prospects in each market segment Skills Required assistance of experienced Sales, Market Research / Business Planning specialists

Stage 4: Define the Customer Value Proposition

Stage 4: Develop a Customer Value Proposition Required for effective messaging Skills Required assistance of an experienced sales specialist

Stage 5: Validation of Sales and Marketing Plan

Stage 5: Sales and Marketing Plan Pricing Model Selling process Sales projections

Stage 5: Sales and Marketing Plan Pricing Model Determine pricing model by: benchmarking against similar products; customer testing. Skills Required experienced sales specialist

Stage 5: Sales and Marketing Plan Selling Process Defining the process method and cost of lead generation; prospect conversion rates conversion lead times. Selling Costs cost of achieving an average sale for each target market segment. Skills Required experienced sales specialist

Stage 5: Sales and Marketing Plan Sales Forecasts completed for the first three years of operation; provided by value and by number of units for each Target Market Segment; supported by prospecting, lead time, conversion and costing schedules.

Stage 6: Market Testing

Stage 6: Market Testing Process Skills Required Commence initial selling to develop as sales pipeline. Establish reference customers Review the sales and marketing plan based on the outcome of the initial sales activity. Skills Required Sales and Marketing Team