1. Knowledge of the Marketplace
Justifying a Problem
Knowledge of the Marketplace
Engineering Design and Development
© 2013 Project Lead The Way, Inc.

2. Is the problem that you have identified really worth saving
Is the problem that you have identified really worth saving? As noted previously, there are two standards or pathways to answering this question. 1) Is there a large volume of evidence supporting my claim that this is in fact a problem and it is worth solving? Would solving this problem help people? 3) Can I prove that there would be a market for a product that solves this problem?

3. Two Pathways to Justification
Justifying Problem Selection
Two Pathways to Justification
Academically or Ethically
Market Research
Some problems worth solving have no research to draw on.
Once you have documented your search of the academic pathway, you might find that a better justification could be showing that there is a market for your product.

4. 1. Define and Justify a Problem
Why EDD?
Engineering Design and Development
Lesson 1.1 Overview and Expectations
An Engineering Design Process - Research
1. Define and Justify a Problem
Brainstorm possible project problems.
Research and select a valid problem.
Become an expert on the problem.
Justify the problem through research.
Academic
Market
Write a problem statement.
Document and analyze prior solutions.
Identify design requirements.
Create a Project Proposal.

5. Knowledge of the Marketplace
Justifying Problem Selection – Market Research
Knowledge of the Marketplace
Why Consider the Marketplace?
Are There Existing Similar Products?
Who Is the Competition?
Who Are the Users and Who Are the Buyers?
What Is the Total Available Market?
What is the Target Market?
Conducting Your Own Market Research

6. Why Consider the Marketplace?
Justifying Problem Selection – Market Research
Why Consider the Marketplace?
If you justification takes an entrepreneurial route you will need to prove that people would buy a solution to the problem identified.
Almost always, and inventor will need investors to help realize a solution and produce it for profit.

7. Are There Existing Similar Products?
Justifying Problem Selection – Market Research
Are There Existing Similar Products?
Existence of similar products does not necessarily justify the project.
But is critical to disclose all attempts and not infringe on another's intellectual property
©iStockphoto.com
©iStockphoto.com

8. Are There Existing Similar Products?
Justifying Problem Selection – Market Research
Are There Existing Similar Products?
Why do those solutions fall short?
Why will your solution be more valuable or desirable?
Is the market big enough for another similar product?
©iStockphoto.com
©iStockphoto.com

9. The Xerographic Process, Chester Carlson
Justifying Problem Selection – Market Research
Who Is the Competition?
Even with a new device, some competition must exist or there is likely no need for the device.
Even a new solution can expect competition from other makers once the new device has been introduced.
The competition is not always among makers of the same product (e.g., bikes and cars are different but do compete).
The Xerographic Process,
Chester Carlson
When Chester Carlson invented Xerography, it was brand new, but people were using carbon paper and mimeograph machines. However, these processes had serious shortcomings.
Many large companies were not interested in his process because it was so new. All in all, it took 21 years for his machine to hit the market, primarily because it was so new and different.
Carlson solved this problem because of his frustration during his time working as a patent analyzer and having to make many copies to perform his job.
To learn more visit or

10. Learn more about the market and your product’s place
Justifying Problem Selection – Market Research
Who Is the Competition?
Learn more about the market and your product’s place
Ask these questions . . .
Who /what are your major competitors?
On what basis do you compete?
How do you compare?
Who are potential future competitors?
What are the barriers to entry for new competitors?

11. Who Are the Users and Who Are the Buyers?
Justifying Problem Selection – Market Research
Who Are the Users and Who Are the Buyers?
Are the users and buyers always the same?
Who should be targeted, users or buyers?
How does this relate to justifying a problem statement?
In simple terms users or end-users are the people that utilize or work with any system or device. The buyer is the person that makes or authorizes a purchase.
In general users and buyers should be considered when designing a product or system if they are not the same person or group. The user generally has a large influence on the purchaser.
While considering users and buyers heavily influences design decisions, they also relate to justifying a problem. All things may not need to be purchased, but if a problem solution is not implemented by a user, then it has not solved the problem. Thinking in terms of users and buyers can improve the problem statement, influence design, and most importantly help to determine if there is a need to solve the problem.
When creating a graphic organizer, students should identify individuals that are both user/buyers and individuals that act as a user or buyer exclusively. Students might indicate which groups are most important in some creative way.
Identify users and buyers in a graphic organizer.

12. What Is the Total Available Market?
Justifying Problem Selection – Market Research
What Is the Total Available Market?
New Ink Pen Design
262,000,000 people in the US over the age of 14 in 2010.
US Census Bureau estimate
On average, people buy two pens per year.
The Total Available Market is 524 million.
A 0.5% market share the first year would represent 2,620,000 pens. At $2 each, that is $5.24 million.
Determining market share is really difficult even for experts, but exposing students to thinking about potential market share can begin to help determine whether a product is worth pursuing. Students should consider whether the cost to solve the problem far outweighs the potential profit.
The assumption is made that people on average buy two pens per year. This would be a good assumption to test in a survey, which the students will conduct.
Students may have difficulty determining numbers.
Total Available Market and Market Share is sometimes measured in units (like the example) and sometimes measured in capital.
The upfront costs of developing anything new take a large bite out of initial profits. Also there are always costs such as facilities, labor, utilities, shipping, distribution, marketing, legal, and many others that exist indefinitely.
Does this market support a new Ink Pen Design?

13. What is the Target Market?
Justifying Problem Selection – Market Research
What is the Target Market?
The target market should be Definable Meaningful Sizable Reachable
Definable – The target market must have specific characteristics identifying what the potential customers have in common.
Meaningful – Target market characteristics must meaningfully relate to the decision to purchase.
Sizable – The target market must be large enough to profitably sustain your business.
Reachable – Both the definition and the size must lead to affordable and effective ways to market to your potential customers.
No different than looking at the Total Available Market, identifying and thinking about the target market helps to determine whether a problem is worth solving.
Why is it important to consider your target market as part of justifying the problem?

14. Conducting Your Own Market Research
Justifying Problem Selection – Market Research
Conducting Your Own Market Research
Decide what you need to know.
Is there something that existing research cannot provide?
Common methods include . . .
Personal Observation
Informational Interviews
Surveys
Focus Groups
Some examples of what students might need to know include:
How much do others care about the problem?
What characteristics and features are most important about the solution?
What would people pay for a solution?
Is the assumed target market correct, smaller, bigger, etc.?
Is the problem broader or narrower according to buyers and/or users?
iStockphoto.com

15. Image Resources Microsoft, Inc. (n. d. ). Clip art
Image Resources Microsoft, Inc. (n.d.). Clip art. Retrieved from iStockphoto. Retrieved from Xerox Corporation. (2010). Chester Carlson and Xerography from