Title: Module 1 Introduction: (CU2 M1) Essential Venture Research
Course: SkillsCom BA 260 15.0 > Section: Credit Unit 2 Module 1- Essential Venture Research

Imagine you have spent several years creating a product that you are convinced is going to be very successful. You have lived the product, talked it up to anyone who will listen, and spent hours developing it. Basically, the product had become "your baby", and your baby is going to be successful because . . . . . well, because it's your baby!

A potential investor asks, “So, can I see some marketing information that will show me that your product stands a good chance of success?”  “Why?” you reply, “This thing is going to sell like hot cakes.” The potential investor walks away without showing further interest in your product.

Bigger businesses than yours have made the same mistake in thinking their product can’t fail. It is later, after they have invested large amounts of cash in the business, that they realize they have a white elephant on their hands. It has happened to bigger fish than you! It happened to Ford in the 1950's with the Ford Edsel. Ford had predicted that the Edsel would help them catch up to other American auto giants like GM and Chrysler, but it turned out costing the company millions of dollars in losses. Failure even happened with Walmart in Germany after they were forced to withdraw from the country in 2006 following poor sales and cultural misunderstandings.

However, preparing well can prevent failure. Diligent preparation includes researching the following aspects of your product idea:

a. What does the customer want? This is not what you think they want.
b. Is there a demand for your product?
c. Can you meet that demand AND make a profit?
d. Who is your "typical" potential customer and how will you let them know you are "there"?

Module Outcome:

- Analyze marketing information.