Market type

It drives how you execute your marketing strategy and spend. (This sounds very related to the Blue Ocean strategy)

• Existing market.
  • You'll be the weakest player with the least resources
  • Customers need performance
  • For a product it means better/faster.
  • Risks: Can you compete with existing solutions?
• Reframe an existing market
  • Create a clear competitive advantage by serving a niche
  • Customer needs lower cost, or a new perceived problem/need. (The focus is the Value proposition)
  • Product needs to be good enough (for low cost) or specialized features.
  • Risks: low value proposition-market fit, competition.
• Create a new market
  • Requires long-term customer education and adoption
  • Customers search for simplicity/convenience.
  • The product can be low in traditional aspects, but they are improved by new customer metrics
  • Risks: market adoption -> Crossing the Chasm

The decision influences many aspects: - Type of customer - Market size - Launch type - Competitive barriers - Positioning - Sales model - Sales cycle