Market type

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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


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Aquiles Carattino
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