How to conduct market research? 2/7: Improve your idea

Summary

In this video, Dr. Pierre-Nicolas Schwab, director of IntoTheMinds market research agency, introduces two key techniques for refining a business idea before conducting market research: the pitch and prototyping. The pitch helps entrepreneurs test the viability of their idea through feedback, while prototyping involves creating a simplified version of the idea—such as a mock-up or video—to visualize the concept. Schwab emphasizes the importance of these steps in confirming a business idea’s potential and guiding its development, offering practical examples from a hospital's service launch project.

Takeaways

• 😀 The pitch is a crucial tool for entrepreneurs to refine their business ideas and present them convincingly to others.
• 😀 A good pitch allows you to test your business idea by confronting it with tough questions from investors, partners, and potential customers.
• 😀 Market research should confirm the strength of a mature idea and reveal areas for further development, rather than just highlighting weaknesses.
• 😀 Entrepreneurs often make the mistake of conducting market research too early, before their idea is fully developed.
• 😀 Prototyping is the next step after pitching, helping to bring your idea to life in a tangible form, whether as a product, service, or software.
• 😀 Prototypes do not need to be fully functional but should effectively convey the concept's potential and functionality to others.
• 😀 For software, a mock-up can be used as a visual representation of the idea. For physical products, a simple prototype or model can be created.
• 😀 For services, a mock-up could be made using simple tools like Lego or through a video presentation demonstrating the service in action.
• 😀 The hospital service example illustrates how prototyping—like creating a video—can effectively communicate the concept to stakeholders during qualitative interviews.
• 😀 By integrating both the pitch and prototyping into your market research methodology, you can gain valuable insights and improve your business idea before committing to full-scale development.
• 😀 Entrepreneurs are encouraged to reach out to market research experts for further guidance and to gain actionable insights into refining their business ideas.

Q & A

What is the main purpose of the pitch in market research?

The pitch serves as a tool to develop an argument that convinces an audience of the relevance of your business idea or project. It's a critical step for startups and entrepreneurs to test the viability of their ideas in front of others who will challenge and critique the concept.

Why is the pitch described as a 'trial by fire' for entrepreneurs?

The pitch is considered a 'trial by fire' because entrepreneurs and project owners face intense scrutiny. They present their idea to an audience who will push them to the limits, testing the strength and clarity of the idea.

How does the pitch contribute to successful market research?

The pitch contributes to successful market research by confirming the viability of a mature business idea. It helps reveal any additional development opportunities while identifying weaknesses in the concept before proceeding further with market research.

What is prototyping in the context of market research?

Prototyping in market research involves creating a version of your idea to test its practicality. It can range from a mock-up of a product to a video that illustrates a service. The goal is to give stakeholders something tangible to evaluate and provide feedback on.

Can you provide an example of prototyping for a service?

For a service, prototyping could involve creating a mock-up using simple materials like Lego or developing a video that demonstrates the service. The aim is to create a visual or functional representation that can be shown to potential users or stakeholders for feedback.

What was the specific example given in the video for prototyping?

The video gave an example of a hospital conducting market research for a new sampling and analysis service. In this case, the team created and showed a video of the service to the individuals interviewed during qualitative research to gather feedback.

Why is it important to prototype before market research?

Prototyping before conducting market research allows entrepreneurs to present a more refined idea or product. It helps clarify the concept for research participants and enables more accurate and actionable feedback that can guide further development.

What are the common weaknesses that market research often reveals in early-stage projects?

Market research often reveals that early-stage projects are too immature or underdeveloped to withstand scrutiny. Entrepreneurs may discover flaws in their ideas, product functionality, or market readiness that were not evident at the start.

What is the importance of combining different techniques in market research?

Combining different market research techniques, such as pitching and prototyping, helps to gather a more comprehensive range of insights. It enables entrepreneurs to address various aspects of their business idea, from its market fit to its practicality and user appeal.

How can entrepreneurs contact the market research agency for further questions?

Entrepreneurs can contact the agency by email or phone for further questions or support regarding their market research and business development needs.