From Idea to Impact: How Market Research Shapes Startup Journeys by Dr. MahaDev
When starting a new venture, it’s easy to feel overwhelmed by uncertainty. But the key to building a successful business lies in grounding your idea in clear objectives and sharp market understanding. At the recent Sparklab 2.0 session on “Market Research Methodologies”, Dr. Mahadev—a Marketing Strategist, Professor, and Startup Consultant with two decades of deep industry experience—shared invaluable insights for early-stage founders.
Dr. Mahadev, who heads the marketing area at Global Institute of Business School, Bangalore, is known for his hands-on approach. As he put it, he doesn’t just teach marketing frameworks—he “lives with them.” His session broke down the essential questions every entrepreneur must ask before diving into market data.
1. Defining the Business: Building Profitable Relationships
According to Dr. Mahadev, marketing is not just about promotions or sales; it’s the part of an organization that builds profitable customer relationships. At the heart of any business lies one crucial question:
👉 What are you expecting in return?
For some, the return is profit, satisfaction, and value. For others, like social entrepreneurs, it might be appreciation, goodwill, or community impact. Whether your goals are financial or social, clarifying them sets the foundation for market research.
2. Sharpening Your Focus: The Power of Positioning
Early-stage startups enjoy the “luxury of the startup”—the freedom to choose how they want customers to remember them. This is where positioning comes in.
👉 What do you want your customers to remember you for?
Positioning is your brand’s identity in the customer’s mind. Dr. Mahadev shared powerful examples:
- Chik Shampoo (Kevincare): Revolutionized the market by introducing sachets, making shampoo affordable for the masses. Their positioning was clear: affordability through packaging size.
- Patanjali (Baba Ramdev): Positioned as the go-to brand for all things Ayurvedic.
Similarly, one Sparklab participant, K. Asha Rani, is developing a tool to detect adulterants in the baking industry. Her positioning focuses on making it affordable and simple enough for anyone to use—empowering people to make safe food choices.
3. Estimating Market Potential: TAM, SAM, and SOM
Once your positioning is clear, the next step is estimating your market size, also called sales forecasting. This involves three critical measures:
- TAM (Total Addressable Market): The entire market that needs your product. For tea sellers, TAM = all tea drinkers in the country.
- SAM (Serviceable Addressable Market): The segment you have the capability to serve, often limited by geography. For instance, a startup may serve only Bangalore rather than all of India.
- SOM (Serviceable Obtainable Market): The realistic share of SAM you can capture after factoring in competitors.
Understanding these three levels prevents founders from overestimating their reach and helps set realistic business goals.
4. Knowing Your Customer: The Four Parameters
Finally, identifying your ideal customer is the backbone of market research. Dr. Mahadev outlined four parameters that define the target audience:
- Income – How wealthy or resource-constrained are they?
- Age – What age group fits your product best?
- Occupation – What jobs or livelihoods do they have?
- Gender – Who makes the buying decision? (E.g., Johnson & Johnson markets baby soap to mothers, since they are the decision-makers.)
By mapping your offering, positioning, and customer along these parameters, you gain clarity and direction for all future research.
The Takeaway
Successful startups don’t just jump into execution—they start by asking the right questions. By clarifying goals, defining positioning, estimating realistic market size, and deeply understanding target customers, founders lay the groundwork for sustainable growth.
As Dr. Mahadev reminded participants, marketing is about building profitable relationships—and those relationships begin with clarity.