The document discusses market needs analysis, which is step 2 of the innovation commercialization process. It aims to determine if a product meets a clear market demand or solves a problem. Key questions in market needs analysis include identifying the product's uniqueness, competition, customer requirements, potential barriers to market entry, distribution channels, and pricing criteria. Understanding market needs helps qualify the market opportunity for a product concept in the early stages of development.

1. “Does your product meet a
clear market demand or solve
a problem?”
Innovation SPACE™ Technology Commercialization Model
Phase 1 : CONCEPT
Stage 1 : DISCOVERY
Step 2 : MARKET NEEDS ANALYSIS

2. The Technology Commercialisation Model
SCIENCE & TECHNOLOGY MARKET ENTERPRISE / BUSINESS
CONCEPT PHASE
STAGE 1 : DISCOVERY Step 1
Technology Analysis
Step 2
Market Needs Analysis
Step 3
Venture Assessment
CREATION PHASE
STAGE 2 : DO-ABILITY Step 4
Technical Feasibility
Step 5
Market Study
Step 6
Economic Feasibility
STAGE 3 : DESIGN Step 7
Engineering Prototype /
Pilot Plant
Step 8
Strategic Marketing Plan
Step 9
Strategic Business Plan
STAGE 4 : DEPLOYMENT Step 10
Pre-production Prototype
Step 11
Market Validation
Step 12
Business Start-Up
COMMERCIAL PHASE
STAGE 5 : DELIVERY Step 13
Production
Step 14
Sales & Distribution
Step 15
Business Growth
STAGE 6 : DOMINATION Step 16
Production Support
Step 17
Market Diversification
Step 18
Business Maturity

3. Step 2: Market Needs Analysis
Does this product meet a clear market demand or solve a problem?
• Assuming all things are still positive, the next
step is to investigate a marketing concept for
the product. This step is called the Market
Needs Analysis. The questions are
straightforward and simple: who will buy the
product, how many will they buy, and how
much will they pay? Discovering this
information is not as simple as asking the
questions. At this level of analysis, the
information comes primarily from secondary
sources such as trade journals, periodicals,
existing market studies and electronic data.
The permissible margin for error at this level
is large. This activity is designed more to
qualify the market opportunity than quantify
it at this point in the process. The purpose
here is to develop a level of confidence about
the marketability of the product.
• Definition: The process of determining whether the concept demonstrates superior ability
over current solutions to meet a market need.
• Objective: The objective of a market needs assessment is to identify a potential market for
the concept, estimate the market size and determine a preliminary value of the product.
• Product: The product of this step is a short summary of information from trade journals,
data bases, and interviews which follows the marketing section of a standard business plan
format.
• Marketing Activities: The marketing activities common to this step are those necessary to
demonstrate that the product is unique and sustainable in a competitive marketplace.
• During the conceptual phase the following activities must be completed:
• • Identify three unique features or benefits of the product;
• Identify the competition;
• Establish customer requirements for the product;
• Identify potential market barriers;
• Identify market distribution channels;
• Identify product pricing criteria
• Milestones: Background research materials
• Funding Sources: Personal finances, Family and friends
• Marketing Information: Completion of the conceptual marketing step will usually result in a
rationale of why the product will receive a positive market response, gross estimates of the
market and its segmentation, a simple explanation of how the product will be marketed,
and an estimated price for the product.
• Key Questions :
• Have you assessed the needs of the market?
Do you know the product uniqueness?
Do you know the product competition?
Do you know the customer requirements?
Have you identified the barriers to market entry?
Have you identified distribution channels?
Do you know the pricing criteria?

4. KEY QUESTIONS
1. Have you assessed the needs of the market?
2. Do you know the product uniqueness?
3. Do you know the product competition?
4. Do you know the customer requirements?
5. Have you identified distribution channels?
6. Do you know the pricing criteria?
7. Have you identified the barriers to market entry?

5. WHAT IS A MARKET SEGMENT?
WHO IS THE CUSTOMER?
Demographic Grouping and Buying Behaviour

6. MARKET SEGMENT : GENERATIONAL
• GEN ALPHA (2011 - )
• GEN Z (iGen)(1995 – 2010)
• MILLENNIALS (GEN whY?)
(1979-1994)
• GEN X (1964-1978)
• BABY BOOMERS (1946-
1964)
• SILENT GENERATION /
TRADITIONALISTS (1925-
1945)

7. Average Ages & Generations

10. MARKET SEGMENT : LIFESTYLE
1. DINGO : Double Income Not Going
Out (Saver)
2. DINKY : Double Income No Kids Yet
3. DITCHED : Dual Income, Two or
more CHildren, Expanding Debts
4. MUPPIE : Middle-aged Urban
Professional
5. OINKY : One Income No Kids Yet
6. ORCHID : One Recent Child Heavily
In Debt
7. GLAM : Greying Leisurely Affluent
Married
8. GOFER : Genial Old Fellow/Female
Enjoying Retirement
9. HENRY : High Earner Not Rich Yet
10. KIPPERS : Kid in Parents Pockets
Eroding Retirement Savings
11. LOHAS : Lifestyle of Health And
Sustainability
12. SINBAD : Single Income No
Boyfriend And Desperate
13. SITCOM : Single Income Two
Children Oppressive Mortgage
14. YUPPIE : Young, Upwardly mobile
Professional

11. My Reasons to Own a car
Choices
•Past Experience
•Present Relationship
(Emotional Attachment)
•Future Dream
(Expectations)
Determinants
•Affordability
•Pleasure
•Practical
•Status Symbol
•Latest Technology

12. 5
3
5
3
1
3
4
4
4
2
2
5
3
5
5
AFFORDABILITY
PLEASURE
PRACTICAL
STATUS SYMBOL
LATEST TECHNOLOGY
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
DETERMINANTS ON CAR CHOICES
PAST EXPERIENCE PRESENT RELATIONSHIP FUTURE DREAM

13. PRODUCT PROMISES : Car Ownership
1. Building Cars People First
2. It’s in the Drive!
3. The Power of Dreams
4. All about the drive.
5. Innovation that excites
6. Passion for life
7. Driving matters
8. Go further.
9. Drive@earth
10.The best or nothing.
11.The Ultimate Driving
Machine
12.New thinking New
Possibilities
13.The power to surprise

14. CLASSIC-INNOVATION
DEPENDABLE - PASSIONATE
CAR OWNERSHIP : MALAYSIA
PASSION
INNOVATIVE
CONVENTIONAL
DEPENDABLE
PERCEPTUAL MAP : INNOVATIVE VS PASSION

15. [CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE] [CELLRANGE]
[CELLRANGE]
[CELLRANGE] [CELLRANGE]
[CELLRANGE]
[CELLRANGE][CELLRANGE]
CLASSIC-INNOVATION
DEPENDABLE - PASSIONATE
CAR OWNERSHIP : MALAYSIA 2015 (591,298 new cars)
PASSION
INNOVATIVE
CONVENTIONAL
DEPENDABLE
PERCEPTUAL MAP : INNOVATIVE VS PASSION

16. PRODUCT PROMISES : Car Ownership
BRANDS
1. Perodua
2. Proton
3. Honda
4. Toyota
5. Nissan / Renault
6. Mazda
7. Isuzu / Ford
8. Mitsubishi
9. Mercedes
10. BMW
11. Hyundai
12. Kia
PROMISES
1. Building Cars People First
2. It’s in the Drive!
3. The Power of Dreams
4. All about the drive.
5. Innovation that excites / Passion for life
6. Driving matters
7. Go further.
8. Drive@earth
9. The best or nothing.
10. The Ultimate Driving Machine
11. New thinking New Possibilities
12. The power to surprise

18. WHAT ARE THE NEEDS OF YOUR CUSTOMER?
Hierarchy of Needs of Individuals and Organisations

19. Maslow Hierarchy of Needs
1.Self-actualization
2.Esteem
3.Love/Belonging
4.Safety
5.Physiological

20. PROMISES, PROMISES
CONSUMER
1. “Think different”
2. “Do the Right Thing”
3. “Taste the Feeling”
4. “Be What’s Next”
5. “Let’s Go Places”
6. “Imagine the Possibilities”
7. “i’m lovin’ it”
8. “and you’re done.”
B2B
1. “Do the Right Thing”
2. “Be What’s Next”
3. “Think.”
4. “Let’s Go Places”
5. “Imagine the Possibilities”
6. “Imagination at work”

21. Organisation Hierarchy of Needs
1. Brand. The brand describes a promise to stakeholders. The brand
is more than the collection of products or services offered by the
company. The brand encompasses an emotional value, an
aspiration, and the public face of a business strategy. The brand
can be viewed as a person, product, organization, and symbol for
the company.
2. Strategic Corporate Stakeholder Relations. Organizations seek
strategic relationships to achieve a desired reputation, create a
defensible competitive advantage, and influence preferential
behaviors in the value chain. Tools include positioning strategy,
design thinking, CSR and innovation programs.
3. Operational Efficiency Operational efficiency priorities focus on
reducing costs, improving existing performance, and optimizing
existing landscapes. Operational efficiency is also know as bottom
line priorities.
4. Regulatory Compliance. Regulatory compliance is a base
need. Organizations must comply with legal requirements. In
addition, organizations may want to avoid legal suits, causing
injury, or failing to meet a commitment.
5. Revenue and Cashflow Growth. Revenue growth reflects the
initiatives used to drive new customers, revenues, and market
share and increased cashflow generation to ensure the survival of
the organization. Revenue growth is also known as top line
priorities.
Brand
Strategic
Corporate
Stakeholder
Relations
Operational Efficiency
Regulatory Compliance
Revenue and Cashflow Growth

22. MARKET SEGMENTATION : B2B
• DEMOGRAPHIC
• Industries range
• Company size
• Geographic Locations
• OPERATING VARIABLES
• Customer Technologies
• User or non-user status / Level of usage
• Customer capabilities / Level of service
support needed
• SITUATIONAL FACTORS
• Urgency
• Specific or all applications
• Size of order
• PURCHASING APPROACHES
• Centralized or decentralized purchasing
function in organization
• Power structure of decision-makers
(engineering/finance)
• Nature of existing relationships
• General purchasing policies
(leasing/service contract/system
purchases/tenders)
• Purchasing criteria (quality/ service/
price)
• PERSONAL CHARACTERISTICS
• Buyer-seller similarity (People/values)
• Attitude towards risk
• Loyalty level to suppliers

23. GLOBAL BRANDS

24. THE MARKETING MIX 4+Ppl
Understanding interactions with the customer

25. Select your Supermarket Product
PRODUCT
COMPETITORS
COMPLEMENTORS
SUBSTITUTES

26. BRANDS SELECTED BRAND COMPETITOR 1 COMPETITOR 2
(SUBSTITUTE)
COMPETITOR 3
(COMPLEMENTOR)
MARKETING MIX
(1=Disadvantage,
2=No difference,
3=Superior Advantage to
competitors)
1. PRODUCT : promise,
packaging, ingredients
2. PRICE : Value for
money, discounts,
bundling offers
3. PROMOTION : On
pack offers, in-store
advertising, newspaper
ad, social media,
website
4. PLACE : Availability,
convenience of outlets,
online store
5. PEOPLE : Store
customer service,
Helpline, Email support
TOTAL SCORE
(x/15)

27. COMPETITIVEADVANTAGES
MARKET SHARE
CONSUMER BRANDS@SUPERMAKET
MARKET LEADERS
CHALLENGERS
COMPLEMENTORS
LAGGARDS
COMPETITOR ANALYSIS : SUPERMARKET WARS

28. Consumption at 10x speed …

29. There is always an alternative …