Market type
It drives how you execute your marketing strategy and spend. (This sounds very related to the Blue Ocean strategy)
- Bring a new product to an 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
- Re-segment the market as a low-cost entrant
- Product needs to be good enough (for low cost) or specialized features.
- Re-segment the market by serving a niche market
- Customer needs lower cost, or a new perceived problem/need. (The focus is the Value proposition)
- Cloning a business model that has worked in another country (Mercado Libre, Bol.com, etc.)
- Risks: low value proposition-market fit, competition.
- Re-segment the market as a low-cost entrant
- Bring a new product into a new market
- This is what happens when you allow customers to do something they couldn't do before. Getting feedback and creating demand is much more challenging.
- The key isn't competing, but understanding if the customer base is large enough.
- 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
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Aquiles Carattino
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