New Product Investigate2018-09-13T19:55:38+00:00


6.  Investigating An Idea For A New Product


Market Research:
Somewhere Between Speculation And Certainty
When Predicting Success


As explained elsewhere in the guide, true success with an invention generally requires success in the marketplace with a product. You can be an inventor, and even get a patent, but without a successfully selling product in the market you are unlikely to make much, if any, money from your invention.


As also explained elsewhere in the guide it frequently requires a large investment of time and money to develop and bring to market a product. Prudent investors in a product development venture will want some evidence that, however novel and non-obvious the product may be, it can be successfully sold for a profit. This evidence comes largely from marketing research.


When it comes to product development marketing research is, generally speaking, any type of objective evidence that can be used to help predict commercial success with a particular product. There is no one type of required marketing research. It can come in many forms.


Without at least some marketing research to support a prediction of commercial success for a product, then any such prediction is simply speculation. Product development based on speculation is really just gambling: You might get lucky and win, but are far more likely to fail. For one thing, the chances of being able to attract the necessary funding are remote, as most investors and lenders aren’t interested in putting their money into purely speculative ventures. Unless you are willing and able to lose your entire investment, you shouldn’t simply gamble either.


On the other hand, no matter how much marketing research is done you will never have a guarantee of success with a new product – there will always be some uncertainty – some risk. Bringing a new product to market is generally considered to be a very risky venture.


So the goal of proper marketing research is to collect, at a reasonable price under the circumstances, sufficient information and evidence to be able to make an objectively rational prediction of success for your product (while being aware of and acknowledging the element of risk, which is often substantial).


Each situation is unique. Different products will require different approaches to market research. For example, it may be unwise to spend tens of thousands of dollars on professional market research when for less money you can begin making and selling the product right away locally on a small scale (a test market) to see how customers respond to the actual product. On the other hand, if it will take an investment of hundreds of thousands of dollars just to begin making and selling your product to customers, then an initial smaller investment (perhaps tens of thousands dollars on quality market research may be wise investment.


If you have an idea for a new product but have no experience with market research, or how to go about it, visit the Market Research Guide on this site. Some of the basics of marketing research, and some of the most common and important questions that need to be answered about a new product, are covered in the Market Research Guide.


Also, beware of mass media advertisements promising invention evaluation services. The reality is that in most cases good market research involves much hard work on your part in terms of becoming very knowledgeable about your product and its market. There are few, if any, legitimate shortcuts. Many "inventor assistance" or "invention evaluation" companies sell services or products that the inventor may mistakenly believe are sufficient "market research" to tell them what the prospects are for the commercial success of their product. This is often untrue. Educate yourself about market research so that you can make wise decisions, and avoid being taken advantage of. A good starting point is the Market Research Guide on this site.


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6.  Investigating An Idea For A New Product


Market Research:
Somewhere Between Speculation And Certainty
When Predicting Success


As explained elsewhere in the guide, true success with an invention generally requires success in the marketplace with a product. You can be an inventor, and even get a patent, but without a successfully selling product in the market you are unlikely to make much, if any, money from your invention.


As also explained elsewhere in the guide it frequently requires a large investment of time and money to develop and bring to market a product. Prudent investors in a product development venture will want some evidence that, however novel and non-obvious the product may be, it can be successfully sold for a profit. This evidence comes largely from marketing research.


When it comes to product development marketing research is, generally speaking, any type of objective evidence that can be used to help predict commercial success with a particular product. There is no one type of required marketing research. It can come in many forms.


Without at least some marketing research to support a prediction of commercial success for a product, then any such prediction is simply speculation. Product development based on speculation is really just gambling: You might get lucky and win, but are far more likely to fail. For one thing, the chances of being able to attract the necessary funding are remote, as most investors and lenders aren’t interested in putting their money into purely speculative ventures. Unless you are willing and able to lose your entire investment, you shouldn’t simply gamble either.


On the other hand, no matter how much marketing research is done you will never have a guarantee of success with a new product – there will always be some uncertainty – some risk. Bringing a new product to market is generally considered to be a very risky venture.


So the goal of proper marketing research is to collect, at a reasonable price under the circumstances, sufficient information and evidence to be able to make an objectively rational prediction of success for your product (while being aware of and acknowledging the element of risk, which is often substantial).


Each situation is unique. Different products will require different approaches to market research. For example, it may be unwise to spend tens of thousands of dollars on professional market research when for less money you can begin making and selling the product right away locally on a small scale (a test market) to see how customers respond to the actual product. On the other hand, if it will take an investment of hundreds of thousands of dollars just to begin making and selling your product to customers, then an initial smaller investment (perhaps tens of thousands dollars on quality market research may be wise investment.


If you have an idea for a new product but have no experience with market research, or how to go about it, visit the Market Research Guide on this site. Some of the basics of marketing research, and some of the most common and important questions that need to be answered about a new product, are covered in the Market Research Guide.


Also, beware of mass media advertisements promising invention evaluation services. The reality is that in most cases good market research involves much hard work on your part in terms of becoming very knowledgeable about your product and its market. There are few, if any, legitimate shortcuts. Many "inventor assistance" or "invention evaluation" companies sell services or products that the inventor may mistakenly believe are sufficient "market research" to tell them what the prospects are for the commercial success of their product. This is often untrue. Educate yourself about market research so that you can make wise decisions, and avoid being taken advantage of. A good starting point is the Market Research Guide on this site.


Previous Guide Section
Next Guide Section