The market assessment is the foundation upon which the entire new product development process is laid.
The stronger the foundation is, the higher the likelihood that the new products that emerge from the new product development process will be successful.
The purpose of the Market Assessment is to provide market and competitive intelligence to help you make informed data-driven product development decisions.
How comprehensive the market assessment needs to be will depend on whether you are already competing in the product category or are considering entering a new product category about which you know very little. If you are considering entering a new product category, you should do a full-blown comprehensive market assessment to get up to speed on the category. If you are already in the product category, you would need to do an update.
There are four parts to the market assessment.
Market Dynamics: To determine market attractiveness, that is whether to get into – or stay in – a product category.
Competitive Landscape: To determine market competitiveness. The less intense the competitive environment, the easier and less expensive entry into the market will be.
Competitive Offerings And Pricing: To determine what niche/segment you want to play in and to identify potential market gaps.
Consumer Dynamics: To thoroughly understand the end-user, their attitudes, habits and practices, what problems they are having with the products that are currently on the market and where current products fall short.
Market assessments typically cost between $10,000 to $25,000 depending on the scope.