1. Market Validation

2. 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

3. Stage 1: Validation of Market Opportunity

4. 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?

5. 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

6. Stage 2: Selection of Target Market Segments

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

8. 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.

9. Stage 3: Detailed Market Segment Analysis

10. 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 qualified prospects in each market segment
Skills Required
assistance of experienced Sales, Market Research / Business Planning specialists

11. Stage 4: Define the Customer Value Proposition

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

13. Stage 5: Validation of Sales and Marketing Plan

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

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

16. 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

17. 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.

18. Stage 6: Market Testing

19. 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