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1 find a_new_market(2)

  1. 1. Find A New Market for an Existing ProductThe Growth Panel exercises loaded in the Library follow the Marketing M.O. process which starts with theassumption that you already have your product/service ready for sale. The late business analyst PeterDrucker once said: “Business has only two functions – innovation and marketing.”You’ve already handled the innovation part; Growth Panel will help with the marketing. It’s important to notethat we define the term marketing as more than just traditional advertising or lead generation: Marketing is the process of developing and communicating value to your prospects and customers.Good marketing is essential for every company. It can make a company with a mediocre product successful,but poor marketing can send a company with a good product out of business. Yet even business-to-business(B2B) marketing is often seen as a soft creative field instead of the engine that drives company revenue.In a perfect world, you would start with competitive positioning and build your entire business growth (akamarketing) program following this process.Competitive positioning is about defining how you’ll “differentiate” your offering and create value for yourmarket. It’s about carving out a spot in the competitive landscape and focusing your company to deliver onthat strategy.If you’re a new company preparing to launch your product (we’ll use this term to cover both products andservices) your first step is to clearly define your initial target market and shape your strategy to penetratethat market and deliver value.Summary EXERCISE SUMMARY If you’re a new company in the process of building your product or service If you’re an existing company looking to expand your market reach and revenue When to Address If you’re an existing company developing a new product or service offering Who Should Business leaders: company founders, owners, presidents and vice presidents ParticipateCompetitive Positioning  Find a New Market for an Existing Product page 1 of 20
  2. 2. Marketing and sales leaders Advisors After completion, reference your results in the rest of the Competitive Positioning exercises. Where to Use the Results Your segment/persona results will help you shape your Brand Strategy. Every brand representation, marketing campaign creative piece and sales pitch should be targeted at one or more of these segments/personas. Choosing the market to pursue is a critical decision for any company. Poor understanding of a new market can easily cause a new product launch (and possibly Why it’s Important an entire business) to fail. Since this is the first exercise in the entire process, it affects everything else that comes afterward: the rest of your strategy and the tools and campaigns that you use What Builds Upon it to execute your strategy. This is not a simple exercise, and the results require substantial commitment. Sometimes, the exercise might lead to a “no-brainer” decision and will only require a Timeframe to few days of work. Most of the time, however, this will take weeks to possibly months Completion to complete. Potential Business Substantial. Few business decisions are as important as what markets you enter. Impact You’ll analyze market segments and brainstorm to determine if it makes sense to enter a new market. Your deliverable is the decision to enter/not enter a specific Deliverable market. Next Steps If you find a new market to pursue, you’ll want to address the rest of the exercises in the strategy portion of the process to address any changes you’ll need to make for your new market: Competitive Positioning Brand Strategy Distribution Channels Pricing Sales Process Marketing Campaigns Marketing Plan & BudgetCompetitive Positioning  Find a New Market for an Existing Product page 2 of 20
  3. 3. Target Completion Date PARTICIPANTS PERSON TASKS TO GET STARTED DUE DATE RESPONSIBLENotesCompetitive Positioning  Find a New Market for an Existing Product page 3 of 20
  4. 4. Find A New Market for an Existing ProductWhat to Complete1. CREATE CUSTOMER VIEW2. DISCOVER POTENTIAL NEW MARKETS3. NEW MARKETS REQUIREMENT OVERVIEW4. RESULTSWhere it Fits in Competitive PositioningCreate Customer ViewDiscover Potential New MarketsNew Markets Requirement OverviewNew Market Analysis ResultsDefine Market SizeOutline Market CharacteristicsDetermine Market Lifecycle StateDetermine Positioning StrategyGet to Know Your MarketEvaluate Your Market ResearchDetermine Your Segments or PersonasProfile Your Segments or PersonasDetermine Your True CompetitionDecide on Your Rating CriteriaEvaluate Your Competitors and YourselfAnalyze Competitive Analysis ResultsCreate SWOT AnalysisDetermine Your Competitors’ Value PropositionsRate Your Market on How it Solves Customer ProblemsDetermine Your Value PropositionCreate Competitive Positioning MatrixMap Your MarketSummarize Your Competitive StrategyCompetitive Positioning  Find a New Market for an Existing Product page 4 of 20
  5. 5. 1. CREATE CUSTOMER VIEWIf you’re looking for a new market for your product or service, start by considering your current orprospective customers. Dive into the details and get a clear picture of them by creating a 360 degree view.What are the problems they face and why do they (or would they) buy from you? Search for the true reasons—they’re not always what we think. Then evaluate whether there are other markets, industries, types ofcompanies, or applications for your product.Your sales team can probably give you valuable ideas throughout this exercise. Consider including them inthis session.First, describe your customers (or potential customers), their problem(s), and how your product solvesthose problems. Product or serviceWhat are the problems your customers face? Consider whether they’re specific to individuals of company-wide. How significant are their problems?Is your market actively seeking a solution to this problem? For most companies, there are a mix of peopleactively seeking a solution, people desiring a solution if it was presented to them (but they’re not activelyseeking one), and people with the pain, whether they’ve realized it or not. Estimate the percentages ofeach. If you don’t know, start with a guess, and refine it as you are able to.How does your product/service solve their problem?Competitive Positioning  Find a New Market for an Existing Product page 5 of 20
  6. 6. If most of your market already has a solution in place to solve this problem, how does your product delivermore value than the competition? Quantify how your solution is an improvement. Typical examples are: 1. Product delivers a more comprehensive solution that accomplishes more than the competition. 2. Product delivers a faster/easier solution. 3. Product delivers a less expensive solution.Make sure to consider this question from the context of your market instead of from your viewpoint (i.e.don’t overstate your differentiation based on small product features that the market doesn’t recognize.This is common in many industries—the market doesn’t differentiate offerings based on feature set, butthe competitors believe it does.)What do your customers value most when they buy from you? What are the factors in their decision topurchase? Is there a single deciding factor?Who makes the ultimate decision to buy from you? Are there influencers? If so, describe how theyparticipate in the decision-making process as well.Competitive Positioning  Find a New Market for an Existing Product page 6 of 20
  7. 7. Next, describe a typical customer. You’re aiming to create a profile of an average customer. Manycompanies find that they have multiple customer groups or segments, so they need to create a profile foreach segment. Some marketers refer to these as customer personas. This is especially popular in thetechnology industry. Personas can make it easier for your company to truly understand your typicalcustomer. Some companies create a name (Sally the Secretary, or Dan the IT Director) and a life-sizecardboard cutout of that person as a reminder. Add as many specific details as you can think of, for thespecific person, the company, or both. Don’t be limited to the initial suggestions. Add as many as necessaryto build a strong profile.If you have multiple segments or personas, copy the below table for each. Customer Segment or PersonaCustomer Details 1 Problem your product solves for this segment/persona 2 Magnitude of the problem for this segment/persona 3 How your product/service is used 4 Stage of company growth 5 Number of employees 6 Annual revenue 7 Industry 8 Geography 9 Decision-maker & role within company 10 Were they looking for a solution before they purchased? 11 Were they aware of their pain before they purchased? 12 Did your product replace a previous solution? 13 Does your product provide a complete solution? Or is it a partial solution?Competitive Positioning  Find a New Market for an Existing Product page 7 of 20
  8. 8. 14 How do customers describe your solution? 15 If they’re a person, describe them in detail (age, income, family status, interests). If they’re a department within a company, describe their characteristics (# people, hierarchy, location) 16 Other2. DISCOVER POTENTIAL NEW MARKETSNow think about other markets you could pursue. Consider the profiles or personas you created. Are theresimilar people in other industries that you haven’t considered? What other types of companies have similarproblems to those of your customers? Focus on their core pain and the solution you deliver. Brainstorm otherindustries, locations, departments and demographics.Here are more specific questions to get you thinking: 1 Could companies whose problems are larger or smaller than those of your current customers use your product? 2 Are there other ways your product/service could be used? 3 Can a company in another growth stage benefit from your product? 4 Can smaller or larger companies benefit? 5 Can you create a version to meet the needs of companies who can afford more or less? 6 What other industries have similar problems and could use your product? 7 Are there other markets geographically? National? International? 8 Can your product be used by a different department or decision- maker within a company? What benefit would s/he gain?Competitive Positioning  Find a New Market for an Existing Product page 8 of 20
  9. 9. 9 Other 10 OtherFrom your brainstorming, are there any other segments/personas for your product? If so, outline them.Are there other ways your product could be used?Are there additional features or benefits that could make your product more valuable to any of theprospects you’ve identified above? If so, can you deliver them on your own, or by partnering with anothercompany?Are there segments/personas similar to your in other industries? If you’re not sure, take some time toresearch. YOUR SEGMENT/PERSONA INDUSTRIES WITH SIMLAR PERSONAS      Competitive Positioning  Find a New Market for an Existing Product page 9 of 20
  10. 10. YOUR SEGMENT/PERSONA INDUSTRIES WITH SIMLAR PERSONAS    What is the size of these potential new marketing segments, in terms of number of potential customersand revenue?Who is serving these markets right now? How competitive are they? [Exercise 4 – Competitive Positioning:Evaluate Your Competition can help]What would your company need to do in order to pursue these markets? Is it a substantial undertaking interms of time and budget? Does it require product innovation or taking on new partners? [Exercise 40 –Distribution Channels: Identify Potential Channels can help] Also consider the marketing messages. Arethey similar to your existing messages? Or would you need to create new messages, collateral andcampaigns?Competitive Positioning  Find a New Market for an Existing Product page 10 of 20
  11. 11. 3. NEW MARKET REQUIREMENTS OVERVIEWAt this point you should have a few ideas of new customer segments or markets to pursue. Penetrating anew market is time-consuming and requires careful planning and asset allocation. Start by organizing yourhigh-level requirements for each potential market to pursue. Product or service Customer Segment or Persona New Market to PursueOverviewNow list the changes you’ll need to make in different areas of each department. Start high-level, and drill-down into any potential problematic changes. DEPARTMENT AREA REQUIREMENTS Marketing Brand Strategy Pricing Distribution Channels Marketing Campaigns Sales Tools & Literature Website Creative OtherCompetitive Positioning  Find a New Market for an Existing Product page 11 of 20
  12. 12. Other Other DEPARTMENT AREA REQUIREMENTS Engineering Design Features Manufacturing Suppliers Product Development Other Other Other Other Other DEPARTMENT AREA REQUIREMENTS Sales Training Sales Headcount Sales Management Sales Process Other Sales Other Other Other Other OtherCompetitive Positioning  Find a New Market for an Existing Product page 12 of 20
  13. 13. DEPARTMENT AREA REQUIREMENTS New Capital Required Potential ROI Effect on cash flow Effect on EBITDA Banking changes Finance Accounting changes Other Other Other Other DEPARTMENT AREA REQUIREMENTS Software changes Hardware changes IT management changes New software New hardware IT New users Training Other Other OtherCompetitive Positioning  Find a New Market for an Existing Product page 13 of 20
  14. 14. DEPARTMENT AREA REQUIREMENTS New headcount New training Use of current headcount Employee performance measurements Management requirements HR Salary requirements Other Other Other Other4. RESULTSAnalyzing the high-level requirements of new customer segments or markets to pursue will probably delivera list of questions to address in one or more potential markets. QUESTIONS POTENTIAL MARKET RESULTAfter resolving your questions, your research should clarify your results to determine if you should pursue anew market. List your results and plan your next steps.Competitive Positioning  Find a New Market for an Existing Product page 14 of 20
  15. 15. NEW MARKETS OR CUSTOMER MARKETS OR CUSTOMER SEGMENTS/PERSONAS DESCRIPTION SEGMENTS/PERSONAS TO PURSUE SUBJECTS/EXERICSES TO ADDRESS NEXT STEPS Continue in Competitive Positioning [2 through 6] If you find a new market to pursue, you’ll want to Brand Strategy address the rest of the subjects in the strategy Distribution Channels portion of the process to address any changes for Pricing your new market: Sales Process Marketing Campaigns Marketing Plan & Budget PERSON TASKS DUE DATE RESPONSIBLENotes Find a Market for an Existing ProductCompetitive Positioning  Find a New Market for an Existing Product page 15 of 20
  16. 16. Report1. CUSTOMERS SEGMENTS OR PERSONAS2. NEW MARKETS TO PURSUEThis report summarizes our results from completing Exercise 1 – Competitive Positioning: Find a NewMarketing for an Existing Product.1. CUSTOMER SEGMENTS OR PERSONASWe used our customer segments or personas to identify and research new market opportunities. Step 1 wasto detail the segments/personas.Copy the below table for multiple segments/personas. Customer Segment or PersonaTarget Customer Details 1 Problem our product solves 2 Magnitude of the problem 3 How our product/service is used 4 Stage of company growth 5 Number of employees 6 Annual revenue 7 Industry 8 Geography 9 Decision-maker & role within company 10 Are they looking for a solution? 11 Are they aware of their pain? 12 Does our product replace a previous solution? 13 Does our product provide aCompetitive Positioning  Find a New Market for an Existing Product page 16 of 20
  17. 17. complete solution? 14 How do customers describe our solution? 15 Personal or company details (age, income, family status, interests, # people, hierarchy, location) 16 OtherBelow is a list of our segments/personas, along with industries we found to have similarsegment/personas: OUR SEGMENT/PERSONA INDUSTRIES WITH SIMLAR PERSONAS          2. NEW MARKETS TO PURSUEAfter analyzing our product and potential market opportunities, I recommend for us to pursue the belowadditional market(s): Product or service Customer Segment or Persona New Market to PursueDescription of OpportunityCompetitive Positioning  Find a New Market for an Existing Product page 17 of 20
  18. 18. Market Details 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 SUBJECTS/EXERICSES TO ADDRESS NEXT STEPS Continue in Competitive Positioning, starting with Profile Your Marketing and Your Position [2]Competitive Positioning  Find a New Market for an Existing Product page 18 of 20
  19. 19. We’ll need to update our entire strategy for our Brand Strategy new market. Distribution Channels Pricing Sales Process Marketing Campaigns Marketing Plan & Budget We’ll reference our results in the rest of the Competitive Positioning exercises. Our segment/persona results will help us shape Where We’ll Use our Brand Strategy and every brand representation, marketing campaign creative and sales pitch should be targeted to one or more of our segments/personas. Choosing a market to pursue is a critical decision for our company. A poor understanding Why it’s Important of a new market will cause a negative impact on our top and bottom line. Entering a new market is the first strategic decision that affects all of our subsequent activities: the rest of our strategy, the tools we What Builds Upon it create and the campaigns we choose to use to execute our strategy. Potential Business Substantial. Few business decisions are as Impact important as what markets we enter. PERSON TASKS DUE DATE RESPONSIBLECompetitive Positioning  Find a New Market for an Existing Product page 19 of 20
  20. 20. NotesCompetitive Positioning  Find a New Market for an Existing Product page 20 of 20

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