MARKET RESEARCH – JOHN RAU

by Chuck Umeda  9906

Market research is something inventors tend to overlook, because their primary focus is refining the idea, getting a patent, having prototypes built and improved.  The inventor hopes to sell the product to a benevolent company which will shower said inventor with a generous royalty.  The truth of the matter is that the companies want profit.  They also know that the inventor’s idea may be a flop just as easily as it can be a hit.  Wise inventors will gain significant leverage in their favor by performing sound market research to demonstrate that the idea will be worthwhile.   This topic was presented by John Rau, President of Ultra-Research, Inc.  His firm is involved in market research and can be reached at 714-779-0151.

Market research has an intimidating ring, but it is basically a business term. It is a planned method of assessing the potential of buyer acceptance of the product, what the buyer will pay for it and where these buyers are in the socio-economic population.

There are two types of market research.  The primary type is aimed at people such as in focus groups (I.A.A., for example), one-on-one interviews, task testing, consumer surveys, telephone interviews.  The secondary type involves database searches, library research, gathering and reviewing information.

Market research is done through extensive search for and survey of information available in published literature and databases and through telephone interviews.  Good starting places include:

the local library for the Thomas Register, trade journals, directories, etc. librarians also can be helpful; the Encyclopedia of Business Information Sources;

the internet has “pay for” databases and services;

government agencies (SBA, Dept of Energy, National Institute of Standard & Technology [formerly the National Bureau of Standards]),

trade associations (most established business segments have an association).

There are companies involved in market research such as Frost & Sullivan, 212-964-7000 and Find/SVP 800-346-3787, the Information Catalog.

Words of wisdom.

Don’t confuse a need with a market.  The public can have a need, but may be unwilling to pay the desired price for the product.

          There must be a demand for the product.

Failing to do market research can amount to a death sentence for your idea.  Consider market research as an investment in your future.

What are typical costs and time?  It can be done in the range of $200 to $2,000 and in 2 to 3 weeks.