A4.0 Justifying a Problem Through Market Research

Justifying a Problem
Knowledge of the Marketplace
Engineering Design and Development
© 2013 Project Lead The Way, Inc.
Is the problem that you have identified
really worth saving?
As noted previously, there are two standards or pathways
to answering this question.
1) Is there a large volume of evidence supporting my
claim that this is in fact a problem and it is worth solving?
Would solving this problem help people?
3) Can I prove that there would be a market for a product
that solves this problem?
Justifying Problem Selection
Two Pathways to Justification
Academically or Ethically
Market Research
• Some problems worth solving have no research to draw on.
• Once you have documented your search of the academic
pathway, you might find that a better justification could be
showing that there is a market for your product.
An Engineering Design Process - Research
1. Define and Justify a Problem
• Brainstorm possible project problems.
• Research and select a valid problem.
• Become an expert on the problem.
• Justify the problem through research.
• Academic
• Market
• Write a problem statement.
• Document and analyze prior solutions.
• Identify design requirements.
• Create a Project Proposal.
Justifying Problem Selection – Market Research
Knowledge of the Marketplace
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Why Consider the Marketplace?
Are There Existing Similar Products?
Who Is the Competition?
Who Are the Users and Who Are the Buyers?
What Is the Total Available Market?
What is the Target Market?
Conducting Your Own Market Research
Justifying Problem Selection – Market Research
Why Consider the Marketplace?
• If you justification takes an entrepreneurial
route you will need to prove that people
would buy a solution to the problem identified.
• Almost always, and inventor will need
investors to help realize a solution and
produce it for profit.
Justifying Problem Selection – Market Research
Are There Existing Similar Products?
• Existence of similar products does not necessarily
justify the project.
• But is critical to disclose all attempts and not infringe
on another's intellectual property
©iStockphoto.com
©iStockphoto.com
Justifying Problem Selection – Market Research
Are There Existing Similar Products?
• Why do those solutions fall short?
• Why will your solution be more valuable or desirable?
• Is the market big enough for another similar product?
©iStockphoto.com
©iStockphoto.com
Justifying Problem Selection – Market Research
Who Is the Competition?
• Even with a new device, some
competition must exist or there
is likely no need for the device.
• Even a new solution can expect
competition from other makers
once the new device has been
introduced.
• The competition is not always
among makers of the same
product (e.g., bikes and cars are
different but do compete).
The Xerographic Process,
Chester Carlson
Justifying Problem Selection – Market Research
Who Is the Competition?
• Learn more about the market and your product’s place
• Ask these questions . . .
– Who /what are your major competitors?
– On what basis do you compete?
– How do you compare?
– Who are potential future competitors?
– What are the barriers to entry for new competitors?
Justifying Problem Selection – Market Research
Who Are the Users and Who Are the Buyers?
• Are the users and buyers always the same?
• Who should be targeted, users or buyers?
• How does this relate to justifying a problem statement?
Identify users and buyers in a graphic organizer.
Justifying Problem Selection – Market Research
What Is the Total Available Market?
New Ink Pen Design
• 262,000,000 people in the US over the age of 14 in 2010.
– US Census Bureau estimate
• On average, people buy two pens per year.
– The Total Available Market is 524 million.
• A 0.5% market share the first year would represent
2,620,000 pens. At $2 each, that is $5.24 million.
Does this market
support a new Ink
Pen Design?
Justifying Problem Selection – Market Research
What is the Target Market?
The target market should be . . .
Definable
Meaningful
Sizable
Reachable
Why is it important to consider your target market as
part of justifying the problem?
Justifying Problem Selection – Market Research
Conducting Your Own Market Research
• Decide what you need to know.
• Is there something that existing research cannot provide?
Common methods include . . .
– Personal Observation
– Informational Interviews
– Surveys
– Focus Groups
iStockphoto.com
Image Resources
Microsoft, Inc. (n.d.). Clip art. Retrieved from
http://office.microsoft.com/en-us/clipart/default.aspx
iStockphoto. Retrieved from
http://www.istockphoto.com/index.php
Xerox Corporation. (2010). Chester Carlson and
Xerography from http://www.xerox.com/innovation/chestercarlson-xerography/enus.html