Machine learning · Market research

How do you find a niche market to start?

Anonymous

May 22nd, 2020

Hello! My question is related to when you already have the core technology, and would like to focusing on a specific niche to validate your idea and track. The difficult I know, is to get start from technology instead of the business problem. What do you recommend to do? Vertical business, starting from technology and be applied to many business problems? Or horizontal business, starting with a business problem and solve partial or end-2-end?


My core technology is related to natural language processing, and I appreciate feedbacks to redirect me to research more about that can be resolved with NLP.


Thanks!

Patrick Weinkam Cofounder at CYTK, Nooklyate data science consulting

May 22nd, 2020

The saying "an inch wide and a mile deep" applies here. As a founder in your exact position, I did focus on a specific business problem and domain. Of course, the exact details of your technology may change the course here. However, there is a lot of work to adapt a technology to create a product and there is sales and marketing to think about. You will learn a lot from a single use case. If you apply a technology to many different domains, the resulting product may not be a competitive solution within any of the verticals and your burn will get very big very fast.

Bryan Riester Economy, Process, Design

May 23rd, 2020

You're welcome to reach out to me if you'd like to talk about your technology specifically. I'm working with a startup in the language space, and NLP is something we use heavily.

Paul Garcia marketing exec & business advisor

May 23rd, 2020

One word answer. Research.

Remember that marketing research should define your product, not your product define who you will market to.

People aren't persuaded to buy products. They are persuaded to buy solutions. You can't start from the technology. You have to research the issues and develop a strategy by which you arrive at a solution.

Raghu Ranjolkar Strategy & Marketing Consultant

Last updated on May 23rd, 2020

Having a strategy for deciding on our target market is a valuable use of time as it gives us a consumer’s standpoint to view our product from, and it helps point us in the right direction.

The first thing that matters when you're starting a business is to know your customer.

Value is always in the eyes of the customer, and not understanding your potential customers means you cannot possibly know what they value. You should know how they behave and how they might react to your offer.

The more narrowly you can define your customer, the easier it will be to understand his or her needs and deliver relative value. If you offer enough value, you can charge a high enough price to cover your associated costs. In other words,narrow is lucrativewhen it comes to business.

Niches do not 'exist' but are 'created' by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them. As a strategy, niche marketing is aimed at being a big fish in a small pond instead of being a small fish in a big pond. Also called micromarketing.

As consumer groups have become more differentiated and fragmented, and with the increasing specificity of needs it has given rise to the growth of Niche marketing. Niche marketing has thus become an important marketing strategy for new and existing organizations. This will become increasingly pertinent as individuals and societies move from meeting basic needs to a more self-actualizing posture. There is therefore, a need for current professionals in the field and in training to be aware and equipped to operate within this new marketing environment.