Most of our articles come from conversations with our clients, and this is another great example. In all our time dealing with clients we have found very little thinking and pro-active action around their operating market.
What does it mean in simple terms? It is the pond you fish in – and we want you to understand everything you can tell us about your pond in order to fish better for your self.
Understanding your pond helps your business make strategic decisions. Here’s a perfect example. Our team was working with a client who decided they wanted to take a new service to market, their current services were seeing a diminishing demand and they needed to acquire an increase in revenue. One of the best ways to do that is to innovate or create a new product or service to market.
Martin, one of our clients, came to us with an idea. When we first started talking to him, there were some initial facts we needed to know before we could help him launch this new service to market:
5 Key Questions in Launching a New Product or Service in Your Operating Market
- Would this new product or service fit into our client’s current market position? Specifically, is this something the market would expect from our client?
- What was the market demand?
- Have any of our client’s competitors brought this product to market already?
- If our client was going to take his new service to market, what was the revenue available? What could they make?
- Was there enough margin to make it worthwhile for our partner client?
If your business is thinking about new products and services, these are the initial questions you should be asking yourself for your operating market.
This is how it panned out for Martin and his team: Yes, there was a demand and it absolutely would fit into his current market position. Unfortunately, five of our client’s competitors had the same idea and two of them were delivering this service at the top of their game. They had already entered the market and owned in excess of 60 % of the market share. Therefore, this would be more difficult and expensive to make work than it needed to be. As a matter of fact, launching any new service or product is expensive yet doing that in a market where there is a strong competitor set is even harder.
If our team hadn’t asked those five simple questions, Martin would have started a tough and costly process. Alternatively, we looked around and found other gaps in his operating market where revenue acquisition looked easier with lower risk.
Growthology offers a structured process 9 Boxes to help SMEs get access to corporate marketing thinking. We want to raise the marketing bar, changing the way businesses engage with marketing. Read more of our blog by clicking here.