Hey Fellow Founders,
I'm interested to hear the stories about how your identified your target market. Was it (roughly) the segment you assumed it would be in the begging? Did you develop something for one market, only to find it was being strongly used by a different market?
I as because I went in looking to solve an issue for the SaaS support side, but now I'm starting to see that the enterprise level for the hospitality industry might me more beneficial for the comapny's growth.
Love to hear some other thoughts.
Identifying your ideal buyer persona ( what you call ideal customers) underscores the need for MVP. Before your market entry, both MVP, business and marketing plans are at best an executive guess. Upon market entry, so many things about your product and plans will surely change.
The beauty of your growth lies in you allowing your customers to take the lead while you follow. You are in business for them, to solve their problems. And you can only solve a problem they seem to have, not otherwise. Their response to and how they consume your MVP, products and services will lead your path to satisfying them.
Therefore, in all you do, priotise data and statistics. In all, listen to them and seek customer experience always.
Hello, Willis. Nice to e-meet you.
Well, I have an example, from an interview I did with Dam Mulhem, co-founder of XXII Group (France). During one year, XXII struggled to develop their VR Game for final consumers. Only when they redirected their team to develop B2B solutions was when they started getting several projects.
Another case comes from my conversation with Crijn Bouman, founder of Epyon Power (Netherlands). At the beginning, they tried to focus on mobile phones fast-charging batteries market. Once, they didn't find traction, they redirected their efforts to address electric vehicles market. The company was sold to ABB in 2011.
Finally, I would recommend you one final post related to market size assessment. There are some basic, but important concepts to calculate market size, as well as a free spreadsheet to help on getting the numbers.
I hope you find some insights on these. :)
To launch a successful business, it is highly imperative to advertise your services/products to the right group of people with the right message. The marketing strategy sets guidelines for actions your business will take to get its information out to your target customers. Before you spend big bucks on a campaign, you will need to make sure the approach is appropriate. This is known as marketing research. Market research should not be confused with marketing research, which is the scientific and objective study of the overall marketing process which involves collection, analysis, communication and utilization of information, so as to help the management in the process of decision making and also resolving marketing problems.
Though they have different purposes, both provide opportunities for asking questions, finding answers and using those answers to be a better marketer. Because Market Research is a subset of Marketing Research, it is easy to see why the two terms are often confused. They are both related to each other in great extent and are widely practiced.
Yes, companies start with a focus on one market, then expand to other markets once they've gotten traction in one. I've worked for several where we look at "who else has this problem," then research to better understand their processes, data requirements, competitive set, how they buy, etc., and most importantly willingness and ability to pay! It sounds like you stumbled into it rather than proactively seeking out new markets, but the research you need to do is the same.
From my experience, the hospitality industry is lagging in BOH technology - they spend a lot on marketing technology and guest-facing - but BOH/support functions don't want to/have a lot of money to spend.
Think much of the answer is in the detail of you ideal client profile. Take child day care as an example. Within your total market ( children ) there are different segments and needs. Younger and single may look at price most often. While older and more professional parents may want it to be education prep based. The staff and goals of the day care would be different. Within your large market there are several small segments that actually have different needs. You can't address these needs with a simple and general ideal client profile or persona.
Looking for a target market, find the closest successful competitor of your product, research them, see what their target market is and how they are reaching it. Copy, copy, copy. You have a better mousetrap right? No need to waste time re-inventing the wheel. CVS/RightAid builds new store next to Walgreens, because they let Walgreens spend the millions determining the best area.