MassMEDIC

Boot Camp for

MedTech Entrepreneurs

Market
Opportunity
Assessment
October 18, 2005
Good Morning, Entrepreneurs
Market opportunity assessment:
1. Understanding innovation
2. Asking the right questions - Looking beyond
product attributes to the customer need
3. Getting the right answers - Appropriate research
methodologies to build market models
4. Building sustainable brands for market change
Understanding Innovation
Health Care Innovation
Principles of change:
1. The adoption of health care innovation requires
a change in standards
2. The rate of adoption is controlled by the
benefits of innovation and the barriers to
change of practice
Innovation Diffusion
Adoption of medical technology has a steep diffusion
curve due to the influence of two market segments.

Nt =Nt-1+p(m- Nt-1)+q Nt-1 (m- Nt-1)

m
Target Organizations
Behavioral change is driven by the acceptance of early
adopters who will influence imitators.
– Innovators are not influenced by others in the timing of
their initial product purchase.
– Imitators are influenced by the number of previous
buyers in the timing of their initial product purchase.

Imitators

Early Adopters
Barriers to Change
The speed of adoption will also be influenced by the
relative difficulty of change.
Asking Questions
Assessing Barriers to Change
Rogers’ Innovation ACCORD model:
Relative Advantage to what it replaces
Compatibility with current behaviors
Complexity of communicating the benefits
Observability of the products benefits
Risk of product failure
Divisibility or trialability
Defining Audience Segments
How can we segment the market in an effective way?
– Based on our core product attributes, who will
this appeal to initially and in the long run?
– Who are the intermediary decision makers
and end users?
– What are their barriers to change?
– Which segments are most attractive?
– What behaviors will need to change?
Understanding the Value Proposition
What benefits are they willing to pay for?

– Functional attributes defining “quality”

– Added benefits or services beyond product

– Economic benefits

– Psychological benefits
Getting Answers
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Market assessment to brand development:

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Sifting through the market for customer behavior

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Developing the Value Proposition
Constructing customer value models based on qualitative
and quantitative research findings
Benefit Values by Customer

Administration Clinician Patient

economic

price ease of use

clinical efficacy quality of life

Building Sustainable Brands
Influencing Diffusion
Marketing effort will influence both early adoption and
imitation
• Awareness - advertising, promotion
• Accessibility - distribution, pricing
• Satisfaction - product design and modification; service
Brand Development

Value Proposition The core value derived from how a

company differentiates its offering from the competitors

Positioning The statement that conveys what you do for

whom, to uniquely address their need

Message Sets Messages that will ultimately inform our

customers on the benefit to change

Creative Platform The words and images that present your

brand to the market
Thank You
Remember, successful market entry requires more
than innovation:
 Ask the right questions
 Use the answers wisely
 Build a sustainable brand
Q&A
Source Materials
Frank M. Bass, A New Product Growth Model for Consumer Durables (Management Science: 1969, 15, 215-227)

Everett M. Rogers, Diffusion of Innovations, 4th ed. (New York: The Free Press, 1995)

David A. Aaker, Build Strong Brands (New York: The Free Press, 1996)

Al Ries, Jack Trout, Positioning - The Battle For Your Mind ((New York: McGraw-Hill, 2001)

Hanssens, Parsons & Schultz, Market Response Models, 2nd Edition. (Boston: Kluwer Academic Publishers, 2001)