For Companies: Validate the company and product position in
priority target markets
Market
validation is one of the most important activities a company can do.
It saves time and valuable development and marketing resources by testing
a product concept, idea, position, and customer buying drivers before
a product is launched or engineered. Market validation can be done by
large companies exploring a new market or product line as well as start-up
companies that may be looking for funding or introducing their first
product.
This is an in depth and intense process that involves
determining a position, priority market/buyer segments
to test, creating a database of target customers, and contacting
high level decision makers
for a one-on-one interview. The results provide valuable
insights that enable a company to better define a unique position
and test buyer requirements
and reaction -- before a product is built and introduced.
Market validation is usually done along with a marketing
strategy, to take the client through market and position
development.