Competition for grants is increasing, and many funding agencies now require strong commercial validation. Our program helps bridge the gap between scientific expertise and market understanding. This page provides guidance on critical aspects of the commercial portion of grant proposals, helping researchers convey the commercial viability of their work.
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Why Commercial Success Matters
Strong market research demonstrates to stakeholders that you understand both the scientific and commercial potential of your work. If a team can clearly articulate their whole path to market, the unique benefits and consequences of a technology, and the holistic impact the technology will have socially and economically, then their proposal will be in an advantageous position.
Reviewers have to believe that a team or PI can accomplish what they are promising and that what they are promising is valuable, and one of the best ways to do that is to explicitly show careful consideration of all relevant variables surrounding the path to market.
Strong market research It helps answer three critical questions:
Is it valuable?
Demonstrate clear market need and commercial potential
Can you execute?
Show understanding of path to market and implementation
What support is needed?
Identify resources required for success
Key Steps in Effective Market Research
1. Establish Market Need
Describing your product’s market need demonstrates its societal and commercial value. Address how it meets existing gaps, offers benefits over competing solutions, or aligns with current market needs.
Key Questions:
- Does this product solve a well-known or relevant problem?
- Is there a commercial case for this product?
- Does it improve on current solutions, or is it cost-effective?
- Does it fill a unique gap other products do not?
Research Sources:
- Market databases
- Academic literature
- Patent searches
- Industry reports
Answering these questions conveys a clear sense of how your technology fits within the current landscape, even if other products or research exist. A relevant product review or comparison will strengthen your proposal.
2. Define Your Target Customer
Clear, well-defined target customer definitions build credibility and demonstrate market understanding. Consider factors like company size, geography, and customer relationships. Detail who these customers are and why you've chosen them. This specificity helps reviewers understand your market entry strategy and expected relationships.
Avoid Vague Definitions:
- "Academic institutions"
- "The government"
- "Biotech companies"
Use Specific Definitions:
- "Top 5 U.S. academic institutions with lionfish research programs"
- "DOE Office of Energy Efficiency and Renewable Energy"
- "Venture-backed sleep tech companies in the western U.S. valued between $1M-$15M"
Key Questions to Consider:
- Who are your primary and secondary customers?
- What is their geographic location and market presence?
- What size companies or institutions will you target?
- What problems do your customers have?
3. Estimate Market Size
Defining your market size is essential. This typically starts with broad figures for a parent market, like the total bicycle market if your technology is a new bicycle tire. However, stopping at the broad number may signal a lack of specific market understanding.
Estimation Approaches
Top-Down Approach
Begin with a large parent market found in market reports and narrow down by filters.
- Start with broad market size
- Apply relevant filters
- Quick but less specific
Bottom-Up Approach
Calculate from expected product units and target customer numbers.
- Start with unit economics
- Multiply by target customers
- More detailed but time-intensive
Both approaches will require some level of assumptions or hypotheses to accomplish. What is important is if these assumptions are reasonably justified by the person who created them. Nobody knows the future, but evidenced hypotheses is critical to whether market numbers are substantial or unconvincing.
In either of the above approaches, when describing a parent market and a segmented one, there are generally three ‘standard’ market sizes that are helpful to readers:
TAM
Total Addressable Market: Your maximum potential market worldwide
SAM
Serviceable Addressable Market: The portion you could realistically serve
SOM
Serviceable Obtainable Market: Your expected market share
Simply put:
- TAM is 100% of the revenue from all possibly related customers
- SAM is 100% of the revenue from all target customers
- SOM is X% of the revenue from the target customers (SAM) you realistically expect to be able to capture (in a best-case scenario)
Take a look at more detailed market estimation methods and market segment definitions here.
Resources Available at the University of Utah
Access these powerful market research tools through the J. Willard Marriott Library:
Markets and Markets
Comprehensive market research reports, competitive intelligence, and industry trends
- Market forecasts
- Competitive analysis
- Industry insights
BCC Research
Detailed market forecasting and technical industry analysis
- Technology assessments
- Market valuations
- Growth projections
Factiva
Global news and business information database
- News archives
- Company profiles
- Industry updates
Pitchbook
Private market and investment data platform
- Investment tracking
- Company valuations
- Market analytics
4. Plan Your Sales and Distribution
A well-defined distribution strategy shows stakeholders you understand how to reach your market. Consider these key elements:
Strategy Components:
- Initial production and testing
- Early adopter engagement
- Scaling partnerships
- Market expansion timeline
Key Considerations:
- Team capabilities and resources
- Existing relationships and partnerships
- Industry-specific channels
- Geographic expansion plans
Sample Distribution Timeline:
Ex. New Bicycle Tire Compound
- Collaborate with my relevant tech transfer office to determine, in tandem with those already identified (X, Y, Z), what labs best align with the goals and benefits of our product
- Work with my committed industry partner, Bicycle Labs, to get initial batch of rubber produced at their in-house manufacturing facility
- Distribute initial batch first to ten labs we have gauged interest from. Seven are committed so far to short term trials, expect three more from tech transfer office collaboration effort.
- Expect to capture 30% of the initial labs distributed to for long term partnership
- Expand to nationwide bicycle stores within five years.
Looking Forward: Flexibility in Market Planning
Planning a market strategy is never perfect, but a thoughtful approach shows external stakeholders that you are prepared and can adapt as dynamics change. Adjustments to your plan may be needed, and that’s acceptable as long as it is demonstrated that they are well-considered.
"Adaptability is key to commercial success.”
Need Help?
Our team is here to guide you through the market research process and help strengthen your grant proposal.
