When developing your business it helps to consider the entire industry landscape, and where your business will fit in.
While success of a product or service requires practical fulfillment of a need in the marketplace, you can boost your market share by identifying and targeting under-served niche(s). This can greatly improve the odds of business survival, especially in highly competitive or saturated markets. First determine your present capabilities. Will this type of expansion over-extend the company? When executed efficiently, supplying specialized markets can increase your net-margins, and even establish your brand.
Determining Your Niche
Choosing your market position will largely be determined once you understand what types of people purchase from you, and why. Useful data can be gleaned from sources like competitors, industry/trade publications, and by surveying potential clients to determine sufficient demand. Next develop a unique positioning strategy based on your company's strengths, capabilities, and current trends.
Be aware that success in market penetration will largely depend on the accuracy and integrity of market info! The right data also makes marketing efforts much more effective, as knowing the demographic data of the target audience ensures a "tailored" message they can understand.
History has shown us that even great products ideas can become epic fails when the market cannot understand them quickly enough. This is usually the case with new inventions, or products that are "ahead of their time", (i.e. Web TV circa 1997, tablet PCs circa 2002...).
Once your venture is active, its wise to keep this research ongoing, as it will keep you bonded with your ideal clients as well as provide on-going feedback to help you improve your business.
This information is also useful in determining your marketplace advantages and disadvantages, while potentially uncovering new opportunities and trends to help you maintain a competitive edge.
Considering the potential benefits of this knowledge, who can afford to not study their market? Combined with proper planning and responsible management, your business will retain market relevance while experiencing long-term stability.
Lambin, J., Chumpitaz, R., & Schuiling, I. (2007). Market-driven management: Strategic and operational marketing. Basingstoke: Palgrave Macmillan.
Republished by Blog Post Promoter