Market validation is a term often used to describe one
or more stages of market research
For a new venture, market validation is conducted during
all business development
Market Needs Assessment. In
the Investigative stage of a venture, a market needs
Market Study. In the Developmental stage, a market study can first be used to demonstrate or support product and financial feasibility by identifying price ranges and feature points required by the target market. This is the study most often term “market validation” — product concept, positioning, and buying drivers are tested in the potential target markets. Actual buyer feedback purchasing behavior information is captured, along with favored product attributes and usage situations.
In contrast to a market needs assessment, a market study provides a deeper understanding of the target market and more depth about competitive positioning, market share estimates, product capabilities, corporate resources to support market growth, and a review of the competitive readiness of the company. Additionally, it investigates go-to-market strategies and identifies critical functional elements that can help align product design to customer requirements and verify the product roadmap.
Marketing Plan. Marketing
planning is often viewed as another form of market validation
Marketing Action Plan. In
the Commercialization stage, the marketing function becomes
The focus is on gaining market share and increasing profitability. Customer feedback is critical to building satisfaction and improving product performance. Additionally, Marketing engages in ongoing marketplace assessment and identifying new markets and opportunities for the product.
The marketing function is critical to the success of a
new venture. The various validation and
By engaging in market validation and research early on,
a company can better identify its