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.
• 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