Assessment of the potential for demand for new and / or innovative goods and services
The nature of demand emergence as the driving force for commercialization of innovative products is different for b2b segments and consumer segment.
The demand for innovative products and services for the consumer segment is often based on the emotional component (including factors of fashion, possession, superiority, comfort, pleasure) and, to some extent, a rational component.
The demand for innovative products and services for b2b segment is almost always based on the rational behavior of b2b consumers of innovative products and services - the consumer should receive tangible benefits from switching to new products: revenue growth, cost reduction, business process acceleration, risk reduction, and others.
In this regard, the models used in the market of consumer goods are not required for studying the demand for goods of b2b segment.
Studies of evaluating the potential of demand for innovative goods and services are much more time consuming and expensive compared to ordinary goods for the following reasons:
1. Absence of statistics or finished studies for a market of innovative products with necessary detail
2. The need to study several markets for substitute goods
3. Necessity of a proof of replaced production volume, revealing the factors and drivers of transition.
4. Short life cycle of some innovative products.
Approaches to exploring the demand potential for new and / or innovative goods and services:
1. Full definition of consumer properties of innovative goods and services, including both useful and negative.
2. Determination of probable target groups for consumers of innovative products.
3. Identification of goods and services of substitutes and / or combinations thereof.
4. Market capacity estimation of each substitute product
5. Capacity estimation of a part of the traditional products market, consumers of which can switch to the use of innovative goods and services. Often there is a need to estimate the total cost of using a traditional product, which can be higher than the total cost of using an innovative product.
6. Total volume estimation of the innovative products market as the sum of all replaced parts of the traditional market.