great idea, i think?!?!? | market research and product .../media/images/msb...write down what you...

Great idea, I think?!?!? | Market Research and Product-Market Fit

Ben [email protected], 512-828-7070

Wednesday, September 14, 2016

mailto:[email protected]

Today

You are in a great place to start a business

• Take advantage of all that UT has to offer

Start by refining your product idea or customer focus

Gather data about the market that already exists (secondary research)

Gather data from prospective customers, partners, and experts (primary research)

Take some version of your idea to market

September 14, 2016© 2016 Ben BentzinSlide 2

About…

Ben Bentzin• Co-founder, CEO of Interactive

Health Technologies LLC, founded 2011

• 9 years McCombs marketing professor

• Previous 10 year marketing career at Dell


Interactive Health Technologies founded to use technology to improve fitness for kids


Here at UT you are in a really good place to start a business

September 14, 2016

Slide 6

Pitchbook Universities Report 2016-2017

© 2016 Ben Bentzin

How do we gain market and product knowledge?


The Innovation Landscape

Pisano, HBR, June 2015, You Need an Innovation Strategy


Innovation efforts have a pathetic “hit rate”

0 100

The global innovation success average, across

all geographies and all industries…

Doblin Group analysis


What Were They Thinking?Windows VistaColgate Frozen Dinner Entrees

Hooters Airline


Cocaine Energy Drink

The Need for Exploration

“Starting a new business is essentially an experiment.”


Block and MacMillan, “Milestones for Successful Venture Planning,” p. 184

Our challenge…

How do we create revolutionary products and

services that customers don’t even know they want yet?


Four steps to refine your product-market fit

September 14, 2016

Slide 13

1. Refine your idea

2. Gather data about the market that already exists (secondary research)

3. Gather data from prospective customers, partners, and experts (primary research)

4. Take some light version of your product or service to market (minimum viable product / market test)

© 2016 Ben Bentzin

Repeat

Refine your idea

Slide 14

Companies are typically either product-led or market-led

September 14, 2016

Slide 15

Is your idea driven by a technology or a market need?

© 2016 Ben Bentzin

Questions to consider for your idea

What will I offer to my customer in terms of benefits at launch? After launch?

What is the problem you solve for your customer?

What makes your product different from the competition?

September 14, 2016

Slide 16

"People don't want to buy a

quarter-inch drill. They want a

quarter-inch hole!“--Theodore Levitt

© 2016 Ben Bentzin

Write down what you know

What do we know about the market?

How fast do expect the market to grow?

What segment of the market do we think we can own (market leading share >33%)

What will you offer to your target customers?

What experience do you have? Do you need?

September 14, 2016

Slide 17

This is your starting hypothesis test and revise

© 2016 Ben Bentzin

Secondary Research

Gather data about the market that already exists

Slide 18

Secondary Research and The Five C’s

Customer Needs What needs do we seek to satisfy?

Company Skills What special competence do we possess to meet those needs?

Competition Who competes with us in meeting those needs?

Collaborators Who should we enlist to help us and how do we motivate them?

Context What cultural, technological and legal factors limit the possible?

September 14, 2016

Slide 19 © 2016 Ben Bentzin

Recommended Secondary Sources

Google Searches

UT Library Resources

• UT Business Library

• LexisNexis Academic

• Full Text Resources

Government sources

Industry associations

Past student projects

September 14, 2016


LexisNexis Academic

September 14, 2016


Secondary Research Sources

UT resources:http://www.lib.utexas.edu/subject/business/

September 14, 2016


http://www.lib.utexas.edu/subject/business/

Business Source Complete Business Source

Complete offers comprehensive full-text coverage plus indexing and abstracts for scholarly business journals

September 14, 2016


Statista

Statista provides statistical data from thousands of institutions and sources

September 14, 2016

Slide 24

500.5

428.4

373.9

326.2 331316

289.4

257

42.563.6

76.4 85.8103.9

116.7 118 117.6

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014

Music album sales and digital music album downloads in USA 2007-2014

music album sales

digital music albumdownloads

© 2016 Ben Bentzin

http://www.lib.utexas.edu/indexes/titles.php?id=787

Grab all of the secondary research you can (in a reasonable time)

Pros

Fast (relatively)

Inexpensive (relatively)

Readily available

May be high quality

Cons

Could be out of date

May not exactly address your question

25September 14, 2016

© 2016 Ben Bentzin

Primary Research

Gather data from prospective customers, partners, and experts

Slide 26

Primary Research

Start with

• Expert Interviews

• Competitive Analysis

• Customer interviews

Consider

• Quantitative Survey

• Focus Group

• Experiment


Expert Interviews

Analysts, Scientists, Bloggers, Professors who follow your market, customers, and/or technology

Write down discussion questions in advance and share with expert

Let the discussion flow naturally, but be sure to get to all of your questions

Follow up with a thank you and what you have done as a result

September 14, 2016


Build a team of opinion leaders to advise you and lend their credibility

September 14, 2016


Take advantage of the talented experts, professors and entrepreneurs here at UT

September 14, 2016


Competitive Analysis

Useful if there are established competitors

Ethical to be a “customer” for a competitor

Not ethical to represent yourself as a “student” if in fact you are doing competitive analysis

Questions

• What makes competitors successful?

• How do customers perceive competitors?

• How will you be different from competitors?

September 14, 2016


The best research is your personal voice to voice and face to face interaction with

potential customers…


Bring potential customers together into a summit

September 14, 2016


Build customer engagement into the development process…and into your budget

September 14, 2016


Integrating customer feedback into your product development process

September 14, 2016

Slide 35

Mohr, Sengupta, Slater, (2005) Marketing of High-Technology Products and Innovations

Customer Marketing Engineering Product TechnologyRock Pile

Would youlike a rock?

Sure

Here’s a

blue rock

OKFind me a big, cheap,fast, dense, sharp...rock

Wrong rock

Do you have ared rock?

What’s wrong

with blue?

I can make a

purple one

OK, but only

if its square

We don’t havesquare ones

…

Apply your vision, use your judgment

© 2016 Ben Bentzin

Primary research options to consider

Quantitative Survey• Ensure adequate sample size and where to sample

• Requires planning, design, pre-testing

• Can be expensive if done right

Focus Group• Recruitment requires planning

• Exploratory research, cannot extrapolate

Experiment• Most common in online A/B testing

Potentially time consuming, expensive, and less helpful than other alternatives

September 14, 2016


Four steps to refine your product-market fit

September 14, 2016

Slide 37

1. Refine your idea

2. Gather data about the market that already exists (secondary research)

3. Gather data from prospective customers, partners, and experts (primary research)

4. Take some light version of your product or service to market (minimum viable product / market test)

© 2016 Ben Bentzin

Repeat

get started, take your idea to the market…

There are only two possible outcomes for your new venture….

September 14, 2016


Success

Experience

Today

You are in a great place to start a business

• Take advantage of all that UT has to offer

Start by refining your product idea or customer focus

Gather data about the market that already exists (secondary research)

Gather data from prospective customers, partners, and experts (primary research)

Take some version of your idea to market


Great idea, I think?!?!? | Market Research and Product-Market Fit

Ben [email protected], 512-828-7070

Wednesday, September 14, 2016

mailto:[email protected]

great idea, i think?!?!? | market research and product .../media/images/msb...write down what you...

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