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Doing it Right: Define a Market and Discover Growth Opportunities

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How to use Jobs to be Done to segment markets

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Doing it Right: Define a Market and Discover Growth Opportunities

  1. 1. Doing it Right Define a Market and Discover Growth Opportunities
  2. 2. Why does this matter?
  3. 3. cbinsights.com
  4. 4. cbinsights.com
  5. 5. DIDN’T KNOW WHAT BUSINESS THEY WERE IN
  6. 6. DIDN’T KNOW WHAT BUSINESS THEY WERE IN DEFINED MARKETS WRONG
  7. 7. So…what is a market?
  8. 8. So…what is a market? Is it a type of person? Is it a product category? Is it a technology? Or something else…?
  9. 9. To answer this question, we should look at what consumers actually consider as competition when they shop…
  10. 10. Parents trying to pass on life lessons to their children Solutions that can be “hired”
  11. 11. Consumers who desire a type of progress (Consumers with a Job to be Done) Products they can use to make progress
  12. 12. Consumers who desire a type of progress (Consumers with a Job to be Done) Products they can use to make progress The market is…. Demand (as a Job to be Done)
 + 
 ALL the supply that can be hired for that demand
  13. 13. Professionals who want to be inspired with advice from someone whom they respect Solutions that can be “hired”
  14. 14. How did Clarity’s market definition change? Old Way Products that offer consumers a similar function New Way Products that offer consumers a similar progress
  15. 15. How did Clarity’s market definition change? Old Way Products that offer consumers a similar function New Way Products that offer consumers a similar progress Revenue potential grows… …but so does your competition
  16. 16. Defining competition outside of product categories is not a new idea…. Moreover, [the types of products you compete against] are transient by nature. In the case of retail trade the competition that matters arises not from additional shops of the same type, but from the department store, the chain store, the mail-order house and the supermarket which are bound to destroy those [monopolies of product types] sooner or later. Joseph Schumpeter Capitalism, Socialism and Democracy 1942
  17. 17. Alternative market segmentation typologies Demographic Psychographic Behavioral Customer Jobs (Demand side only) ODI Markets are based upon people who share.. Physical and situational attributes Activities, interests, and the opinions A behavior when they buy things A desire for a positive change in their life- situation Who engage in a particular task Example Female Aged 45-65 Married with children Dealing with issues of weight gain Household income $100K+ Concerned with health and appearance Wants a healthy lifestyle, but doesn’t have much time Enjoys going online in the evenings, big fan of Pinterest Buying gifts for Christmas whitening of teeth, repairing split ends (benefit segmentation) “I always drink Coke” (Brand loyalty) Getting control of a sales that is starting to fall apart Having financial stability Be able to use market news as a competitive advantage Interventional cardiologist who want to restore blood flow in an artery Patients who want to infuse prescribed fluids Tradesmen who want to cut a piece of wood in a straight line
  18. 18. Defining a market as progress, helps you… Size markets more accurately Determine revenue potential Know who you’re really competing against Create effective marketing and product strategies Create internal alignment around what business you’re really in
  19. 19. What market(s) does Weber compete in?
  20. 20. What market(s) does DeWalt compete in?
  21. 21. Upgrade your user, not your product. Don’t build better cameras, build better photographers. —Kathy Sierra
  22. 22. Defining markets in terms of progress helps you know what business you’re really in. This helps you… Understand “market needs” Find growth opportunities (new sources of revenue ) Know who your real competitors are (so you can best learn what consumers value)
  23. 23. Thank you @alanklement alanklement.com idealizedinnovation.com

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