When considering a new market, having a solid information base is crucial. A market's maturity significantly influences the approach and position of your products and services against the competition. This understanding is the foundation for your market strategy and guides your future marketing and sales activities, ensuring you are well-informed and prepared.
Is your market actively seeking solutions to problems? Does your product or service solve them?
Understand how your customers and prospects work to solve their problems. The goal is to know your potential customers' thoughts and solve their problems with a tailor-made set of solutions. Objectively look at your market and customers' issues and their value to you.
One of the critical elements of your positioning strategy is delivering value at the highest level. This value can be achieved through operational excellence or customer intimacy. By understanding what your customers value most when they buy from you, you can strategically focus on delivering that value, demonstrating your customer-centric approach and strategic thinking.
Is your market growing, stable or shrinking?
Without reliable market data, it is not easy to understand the exact positioning of new opportunities. Consider the most critical factors in your market's lifecycle, such as size and buying propensity. Determine the external factors and trends that will affect the market alongside any growth potential.
You need as much numerical market data as you can find and a clear picture of the life cycle of your direct and indirect competitors and your indirect and direct future competitors. It is crucial to understand the market's life cycle and current trends and be aware of your industry and market trends.
A successful positioning strategy requires careful evaluation and thorough market research. This strategy will guide your market entry and growth, ensuring you are well-prepared and strategic in your approach.
A detailed competitive analysis clearly shows where you stand in the market and where your customer acquisition is gaining ground. Clearly understand your direct and indirect future competitors and who they will be. Analyse the top five using a set of criteria that will give you an objective view of the market. Include an understanding of how your competitors add value to the market. Try to be as neutral as possible.
Embracing your customer ecosystem
Just as the perception of the market changes, so can your product or service. It is not uncommon for one company to transfer certain mindshares to another. If you have not yet decided which mindshare to own, displaying your positioning on a map is helpful.
Your competitive position can define how you differentiate your offer and create value for the market. The types of analysis described above will provide you with a solid base of information that you can use when deciding whether to seek a new market and your competitive position. The aim is to clarify your business model, customer base, and potential market for your product or service, embracing your customer ecosystem.
The above will also allow you to clarify your strengths and challenges to overcome the competition in your market. Consider these issues carefully (i.e., do not overestimate your differentiation based on small product features that markets do not recognise) and the growth potential. By quantitatively analysing the needs of any new market alongside an analysis of your existing customer base, you will find out how to interact with and engage new customers.
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