Creating and Dominating New Markets

Creating and Dominating New Markets

AUTHOR: Peter MeyerPUBLISHER: AMACOMDATE OF PUBLICATION: 2002NUMBER OF PAGES: 241 pages

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Creating and Dominating New Markets by Peter Meyer

THE BIG IDEA

For every hundred new businesses launched, less than half will survive the crucial four years of operations.

A business that creates and dominates new markets is more likely to survive.

The author provides a guide on how to start and manage a new market.


PART 1: Strategies for Creating and Dominating New Markets

The Mystique and Challenges of New Markets

New markets are attractive because it is:

1. Exciting - it is fun and rewarding to create something new that consumers want and enjoy.

2. Profitable - you have no competition so you can price your product at the customer’s sense of value.

3. Forgiving - you can make mistakes at your own risk and make your own rules.


Follow the following fundamentals to increase the chance of success in creating new markets :

1. Customer-driven markets work better than vendor-driven markets.

2. Follow one of the two-lower risk paths - new products for known markets

or known products for new markets.

3. Be willing to ignore opportunities. Stay on track through-out.

4. Start with cross-functional terms and leadership.



• Clear these hurdles to succeed in new markets:

1. Funding the work internally with time, people

and money.

2. Finding key external support.

3. Assembling the right mix of skills to pull it

off.

4. Resisting the siren call of the great idea.

5. Believing expertise in old market equals

understanding a new one.

6. Realizing your friends and customers may

not know the market.



Balancing Your Resources and Your Opportunities

Creating new markets is an investment of time, people and money.

1. Money - to create new markets, you need money to invest.2. People - choose people who are not limited by traditional business practices.3. Time - this is the most vital resource.



It’s the Problem that Matters

• Look at your potential customers’

perceived problem and create a solution.

• Change the way customers think of a

problem by creating a need for your

product.

• Look for problems at the top of the

customer’s list.



Choosing the Best Risk

Guides in choosing the right problem:

1. Anticipating Problems - look into the future and identify issues that are most likely to create problems for your

customers.

2. Creating Problems - create a totally new problem that is equally critical as well.

3. Asking About Problems - Ask prospective clients about problems that are important to them and would pay most to solve.



What New Markets are Available to You?

There are four ways to create a new market.

1. New Customers, New Products

2. Unknown Products, Known Customers

3. Known Products, Unknown Customers

4. Known Products, Known Customers



Funding the New Market Effort

An opportunity data base makes it easier to call on the best prospects first.

1. It looks at all leads at once.

2. Finds prospects before they feel need.

3. Looks at a total universe of possible customers.

4. Lower per-lead cost because main cost is up front.

5. Assigns ranking to all leads.

6. Provides macro view.

7. Leverages technology.

8. Ranks leads by likely sense of need.

9. Ranks leads by likely margin contribution.

PART 2: Application of the Strategies


Eight steps to create the database:2. Review your data of existing customers.3. Sort the data for common denominators and

trends that show up in a structured sort.4. Identify the key common denominators for a

purchasing decision.5. Look for the same data for your competitor’s

customers.6. Match the list against a standard for identifying

locations and buyers.7. Buy the information you need from other database

that highlights the commonalities you care about.8. Create ranking priorities for the common

denominators.9. Sort the entire list against the common

denominators by DUNS number and point value.



What Role Does the Customers Play?

Three basic strategies in creating to new markets:

1. Shaping the Market

2. Predicting the Market

3. Asking Your Customers for Help

Three basic steps to succeed in letting your customers help build new markets:

1. Understanding the problem as customers sees it.

2. Using customer success criteria.

3. Applying what you learn.



Building and Dominating Markets through Involvement

Three pitfalls to look out for when building a new market:

1. Launching is slightly off target.

2. The target will move immediately.

3. Customer loyalty to you is always bounded by customers’ loyalty to themselves.



What is the Role of Information Technology?

• It can reach customers, automate the company processes, and allow employees to do more with the same resources that are essential to growth.

• I.T. can develop tool that permits a company to enter new markets that are unavailable.




Using Credibility in Creating and Dominating New Markets

Four options you can use to add or increase credibility:

1. Viral Marketing

2. Careful Selection of Your Customers and Investors

3. Production Trials

4. Using Competition



What’s Next?

Creating and dominating new markets can arise from the following opportunities:

1. Changing demographics

2. Warp-speed growth

3. Recession

4. Dislocation, disruption and consolidation


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