Principles of marketing 2: Know your market

gapDragon’s Den.

Your idea of hell or your biggest opportunity? On the one hand, you might give away 40% of your business, but on the other the TV exposure guarantees you an audience if you decide to go it alone. Often it’s a gamble because huge assumptions have been made about the market potential of the product.

The biggest issue the dragons face is quickly and decisively establishing if there is a market in the gap of the gap in the market solution being presented.

There are some basic research questions to ask yourself to establish the answer for your own business:

1. Is it a growing or shrinking market? How dynamic is it?

2. What are the trends – movement to online buying, procurement from the Far East, greater automation?

3. What needs are being fulfilled with your product/service? How might these needs evolve over time?

4. Who and where are the customers? Can they be segmented based on need / buyer behavior?

5. Are there lots of existing competitors? If yes, then clearly there is a market in the gap, if no, be concerned.

An abundance of resources, statistics and executive summaries of expensive market reports can be found online. You will be able to find information about your market if you shine your torch in enough dark and dirty corners.

Now ask yourself this: Could you face the Dragons right now and confidently explain how you understand your market?

Advertisements

2 responses to “Principles of marketing 2: Know your market

  1. Some really good points in there. Lots of food for thought.

  2. Like Paul says there are some really valid points above.

    I think a lot of business think too much about their market here and now but fail to look in to the future and notice future trends/opportunities or not as the case may be.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s