Goal of phase 1e: Recognize that Market Type drives : sales curves, marketing strategies, revenue and cash
flow needs - test alternate Market Type's on your company and product.
Author:
Approval:
Business Execution, Business Visionary
Entire Founding Team
Presenter: Founding Technical Team
Time / Effort: 2-3 days of authoring by VP Business Execution or Business Visionary, 114 day
presentation/strategy meeting with founding team and executive staff
- Do you have a new product in an existing market?
- Do you need to redefine/reframe a market?
- Or do you want to create an entirely new market?
I. Is your product/service a substitution for something customers already have?
2. Is it a replacement?
3. Is it a variant on something already out there, but can be "respun" into something new?
4. Is it something totally new?
Positioning in An Existing Market
- If it's a new product in an existing market, define the basis of competition
I. Positioning the product is the basis of competition
2. Picking the correct axes for the basis of competition is critical. For example:
a. feature / technology axis
b. price / performance ax is
c. channel/margin axis
3. What are the revenue and bum rate curves look like for this Market Type?
- Who is driving the existing market?
1. Are there existing standards? If so, whose agenda is driving the standards?
2. Do you want to embrace the standards, extend them, or replace them?
3. Are there different global issues than just national ones?
- Do you have some advantage or appeal among any vertical or horizontal market
segment?
I. Which markets or segments?
Positioning in An Existing Market you Want to Resegment
- If it's a new product in a market you want to resegment, define the basis of the how
you want to change the market
I. Positioning the change in the market is the basis competition
2. This is driven by some new feature of the product or service that redefines the market
3. Redraw the market map and showing which new feature you offer that drive this is critical.
For example:
a. New customers
b. New distribution channel
c. feature / technology axis
d. price / performance axis
e. channel/margin axis
4. Why would thousands of new customers believe in and move to this segment of the market?
S. What are the revenue and burn rate curves look like for this Market Type?
- Who is driving the existing market you want to resegment?
1. Are there existing standards? If so , whose agenda is driving the standards?
2. Do you want to embrace the standards, extend them, or replace them?
3. Are there different global issues than just national ones?
Positioning in a New Market
- If it's a new market, create the market
1. Positioning the creation of a new market is the basis competition
a. List the closest markets to ours (a market is a set of companies with common attributes)
b. Draw the market map with you in the center
c. Give your a market a descriptive TLA (three-letter acronym)
2. Why would thousands of new customers believe in and move to this market?
3. What are the revenue and burn rate curves look like for this Market Type?
Phase 1e Exit Criteria: A preliminary first hypothesis of the Market Type.