Validate the service
description of the
product with potential
customers to
determine its market.
WHAT IS PRODUCT/SERVICE
DESCRIPTION?
A product/service description is the marketing
copy that explains what a
product/service is and why it's worth
purchasing. The purpose of a product/service
description is to supply customers with
important information about the features
and benefits of the product/service so they're
compelled to buy. (Henneke, 2019)
WHAT “MARKET” IS AS REFERRED TO IN
THIS MODULE
It refers to a set of individuals sharing similar
needs or characteristics that a business hopes to
serve. These individuals are the end users most
likely to purchase your product. (Hubbard, 2019)
This process typically takes place early-on in the
conception stage, before any significant
investment has been made in developing the
product.
The two most common approaches to market
validation are:
1. Interview people in the target market, such as
the buyers.
2. Send out surveys to these personas.
The key is that market validation research must include
direct contact and feedback from people in the product’s
intended market.
HOW TO VALIDATE A PRODUCT’S OR A
SERVICE’S MARKETABILITY?
1. Ring the cash register
The first and arguably best way to validate your
product is to prioritize making a few initial sales.
Nothing is more important than customers seeing
the
value in your product and exchanging money for it.
2. Conduct competitive analysis
Research can be useful when you’re still in the ideation
stage or searching for a product to sell. Exploring the
current market can also help you mitigate risk and
build confidence in your idea before investing too much
time and money.
Evaluate the market for your product as it stands today
to ensure there’s enough demand to build a viable
business. One way to make sure there is a healthy
market to sell to is to look closely at your direct
competition. Find out what they are doing and how it
compares to what you are planning to do.
Remember not to get discouraged when you see
competitors that have already grown big businesses.
The fact that they exist will give you a good sense of
whether what you are offering is unique or different
than what’s currently in the market, which can point
you toward untapped opportunities or help you figure
out what to focus on going forward.
Competition is good, because it confirms that
there’s existing demand for what you plan to
sell.
3. Research the existing demand
A third strategy you can use to validate your product and its
market is to analyze demand and search volume. Now that
you know more about your competitors, let’s take a closer
look at interest from potential customers. The easiest starting
place is to go to Google Trends. This is a free tool that
allows you to see how often people are searching for the
product you’re selling. Knowing where the market is going can
help you make a more informed decision
and using Google Trends lets you see if you're dealing with a
trending product that's on the upswing, or it’s a stagnant
product category. The last thing you want to do is jump into a
declining market.
4. Start a crowd-funding campaign
What is Crowd-funding?
Crowd-funding is the use of small amounts of
capital from a large number of individuals to
finance a new business venture. A crowd-funding
campaign is a helpful, proven option to see if
there’s demand for your product. One of the
benefits of a crowd-funding campaign is that you
have a firm timeline and it requires all of your
focus and effort to reach your goal.
5. Meet customers in person
Another method is to sign up for trade fairs in local market. It
provided a convenient way to gather quick, first-hand feedback
from potential customers.
6. Beta Test
Other ways to validate your product include creating a test
version of something and running it past a small group or
audience to get their feedback.
A test version of the product can either be paid, or free, and is a
great way to get testimonials and feedback while you create.
You can also use the feedback from your first round to improve
and build on your ideas to make them even better!
WHAT HAPPENS IF NO ONE SEEMS INTERESTED?
What if your potential customers do not want your
idea?
Take a look at the execution; it might be they love the
concept, but the delivery needs to be different. Or, that
the idea is sound but the offer isn’t clear.
If you are passionate about your product or service and
truly believe it has a place in the market, test it with a
few variants of concepts and play around with some
methods of delivery and adding value.
Do your research, build as you go, and make sure that
the vibrancy and energy behind your passion for your
offering remain there, and your business and clients