Phases of
Product Development: Marketing Research Phase
Target Company Search
A Target Company Search compiles background
information on the subject industry in which a
concept or invention applies. Business and
government organizations spend literally hundreds
of millions of dollars to obtain statistical data
and information on every industry. These findings
are available to professional researchers, who are
trained on retrieving these facts. One of our
objectives in this phase is to gather targeted
industry details that can be used to establish a
market for the concept.
The Target Company Search is an essential step in
bringing a product to market. In this phase, we
provide the client with existing data (i.e.,
"secondary" market research) from sources such as
government reports and publications, industry
studies, business directories, industry experts
and authorities, trade journals, and trade
associations. Market intelligence is a vital
resource for planning and decision-making. A
tremendous store of information is available, and
our researchers are skilled at identifying this
material.
At the conclusion
of this phase, we provide our clients with a
detailed tabulation of names, addresses, phone
numbers, etc., of companies we research and
classify as capable of manufacturing and/or
distributing their concepts. The report includes
information such as a listing of product lines by
industry classification and a contact person, if
available. One of the tools we use to gather this
data is the Standard Industrial Classification
("SIC") code, which is the U.S. statistical
classification standard underlying all industries.
SIC codes cover the entire field of economic
activities and define industries in accordance
with the composition and structure of the economy.
They are revised periodically to reflect the
economy's changing industrial organization and
take into account technological and institutional
innovation.
In addition to the above, this report includes a
list of the following subject matter: (Each list
will have names, addresses, phone numbers, and
other relevant information.)
- Appropriate trade associations, trade shows,
and trade directories associated with the given
industry.
- Prototype and/or modeling firms capable of
constructing a prototype of the concept.
- Catalogs that target the consumer for
potential advertising and distribution of the
concept.
- Magazines and trade publications that would
be potential advertising media. This includes
the publisher, advertising rates, and basic
demographics.
- Major target industry retailers identified
by SIC code. Major target industry component
parts suppliers and/or manufacturers (such as
suppliers of raw materials, contributing parts,
etc.) identified by SIC code.
In addition, we
conduct a periodical search of magazines and other
publications for subject matter pertinent to the
product or concept in relation to its industry.
This information is used to identify and
understand current developments and trends
affecting the market that the concept will be
penetrating. This information is vital to the
development of a successful campaign.
To accomplish this research, we probe appropriate
databases, trade journals, newspaper texts,
conventions and conferences, the U.S. Census and
Bureau of Statistics, the U.S. Industrial Outlook,
etc. Our trained database searchers use Dun &
Bradstreet, Predicasts, Inpadoc, Thomson & Thomson
Trademarkscan, and U.S. News & World Report. These
are among the hundreds of databases available to
locate the desired information.
Focus Group Study
Synergy targets, screens, and recruits a group of
respondents who qualify as potential consumers of
a concept and then performs a Focus Group Study to
collect meaningful qualitative data. A Focus Group
Study is one of the most effective and economical
ways to gather objective, non-biased feedback on a
new concept. No company of any significance ever
introduces a new product without this form of
primary market research. The objective of Focus
Group Studies is to acquire constructive consumer
input and feedback, which includes (but certainly
is not limited to) likes and dislikes,
constructive criticism, suggestions for
improvements, pricing parameters, name and its
acceptance, point of purchase preferences,
promotional expectations, and perceived benefits.
Focus Group Studies provide invaluable consumer
input, credibility, and other beneficial data that
can be used in presentations to targeted
companies.
Direct Response Marketing Research
This step entails conducting the quantitative
consumer research necessary to validate
assumptions concerning market demand and
segmentation. A Direct Response Survey is the most
cost-effective method of gathering this
information. A statistically appropriate sample of
respondents is interviewed by questionnaire to
gather valid and reliable data concerning a
concept. The data is then tabulated and analyzed
for relevant information and statistical
significance. Then we write a conclusive report
based on the findings. This provides the client
with factual results and consumer input that can
be extrapolated into the total population and used
to develop appropriate market projections and
sales forecasts. This type of quantitative
research gives a basis for validating and
defending the assumptions used in presentations to
prospective licensees. |
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