A “market analysis” should not be confused with a “marketability evaluation“. A market analysis merely considers trends, consumption, users and types of products in the market of your invention. Many of the BAD Guys sell only a market analysis to inventors and not a marketability evaluation which is really needed. Though it has some useful information, a market analysis has limited value to inventors since it does not tell them anything about whether their invention is potentially marketable.
Below is an example of the significant differences between a “market analysis” and a “marketability evaluation” for a new toothbrush invention that brushes teeth 25% faster than conventional toothbrushes called SUPER BRUSH.
- 10,000,000 toothbrushes were sold in 1998
- 4.4 Billion people in the world use toothbrushes
- 2.3 Billion people replace their toothbrush every year
- Toothbrush sales are expected to top 12,500,000 in 1999
- The average price for a toothbrush sold in 1998 was $2.75
- The average cost to manufacture a toothbrush in 1998 was $0.35
- Most consumers do not care if they can brush their teeth 25% faster
- There are over 250 different competitive products in the toothbrush industry
- The SUPER BRUSH is heavier than conventional brushes so they are less desirable by consumers
- The SUPER BRUSH requires extensive training by a professional to ensure proper usage
- Consumers of toothbrushes do not change types of toothbrushes easily
By merely looking at the “market analysis” it appears that the SUPER BRUSH would be a great invention to invest thousands of dollars into which is exactly what the BAD Guys want you to think. However, by considering the “marketability evaluation,” it is obvious that the SUPER BRUSH does not have much of a chance for making it in the toothbrush, hence a smart inventor would not spend anymore time or money on the SUPER BRUSH and go onto the next invention!
Some of the BAD Guys will charge you $600 to $4,000 for a market analysis which provides you with little value. This is especially disturbing when considering that you can do your own market analysis for free at your local library or by using the following free Internet resources:
- American Demographics
- Hoover’s Online
- Industry Research Desk
- State of the Nation
- U.S. Census Bureau
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