{"id":76099,"date":"2022-08-14T16:34:00","date_gmt":"2022-08-14T20:34:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=76099"},"modified":"2022-08-22T12:50:42","modified_gmt":"2022-08-22T16:50:42","slug":"target-the-right-market","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/target-the-right-market\/","title":{"rendered":"How to Target the Right Market\u2014and Dominate It!"},"content":{"rendered":"\n<p>What are the various kinds of markets in which you can <a href=\"https:\/\/www.shortform.com\/blog\/how-to-sell-a-product\/\">sell your product<\/a>? How do you determine which market is the right one for your product?<\/p>\n\n\n\n<p>Positioning means establishing the context for the use of your product, and selling your product in the right market helps provide that context. For instance, if you sell a new snack in the \u201cchip\u201d market, customers immediately know approximately what your product will look and taste like.<\/p>\n\n\n\n<p>Keep reading to learn how to target the right market and dominate it.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-targeting-the-right-market\">Targeting the Right Market<\/h2>\n\n\n\n<p>Positioning consultant April Dunford recommends that, once you understand your competition, your superior features, and which <a href=\"https:\/\/www.shortform.com\/blog\/customer-segmentation-analysis\/\">customer segments<\/a> to target, you should target the right market. The right market is the one that provides context on how to use your product and that gives you the opportunity to dominate that market.<\/p>\n\n\n\n<p>(Shortform note: Dunford doesn\u2019t provide specific advice on how to select the market for your product that provides the right context on how to use it. In <a href=\"https:\/\/shortform.com\/app\/book\/crossing-the-chasm\"><em>Crossing the Chasm<\/em><\/a><em>, <\/em>Geoffrey Moore advises that <a href=\"https:\/\/shortform.com\/app\/book\/crossing-the-chasm\/chapter-4#intuition-versus-analysis\">you won\u2019t initially have enough data to know which market\u2014or what he refers to as a niche\u2014to position your product in<\/a>. You must therefore first position your product as well as possible through a thought exercise: <a href=\"https:\/\/shortform.com\/app\/book\/crossing-the-chasm\/chapter-4#step-2-build-purchasing-scenarios-based-on-customer-profiles\">Think of your target customer (who you identified in the previous step) and consider in what scenarios they\u2019d buy your product<\/a>. This is, in essence, the niche you should enter (for instance, \u201chigh-end convenience store snacks\u201d).)<\/p>\n\n\n\n<p>You can try to dominate three types of markets, claims Dunford:&nbsp;<\/p>\n\n\n\n<p><strong>1. An existing market: <\/strong>Customers already know this market well and understand what defines a good product within it. For instance, in the chip market, consumers know a chip should be salty and crunchy and expect this from all chips. Small businesses shouldn\u2019t try to win over an entire existing market\u2014to create a chip more popular than Pringles, for instance. However, a large company could try to win over an existing market if the market is changing in a way that favors its product (say if the chip market is becoming increasingly health-conscious, and your company sells a veggie chip), or if there\u2019s no existing <a href=\"https:\/\/www.shortform.com\/blog\/market-leader-company\/\">market leader<\/a>.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: If you were to succeed in dominating an existing market in the way Dunford recommends, you might even go so far as to establish a monopoly in the market. Dunford doesn\u2019t discuss this specific possibility, but in <a href=\"https:\/\/shortform.com\/app\/book\/zero-to-one\/1-page-summary\"><em>Zero to One<\/em><\/a><em>, <\/em>Peter Thiel argues that <a href=\"https:\/\/shortform.com\/app\/book\/zero-to-one\/1-page-summary#the-importance-of-monopolies\">creating a monopoly would advance the greater good<\/a>. This is because monopolies, facing no stiff competition that requires them to minimize expenses and maximize profit, can dedicate resources toward improving the lives of employees and society as a whole. If you aim to dominate an existing market, it might be worth asking yourself if you\u2019d feel compelled to give back to society if you achieve your goal and perhaps changing your aim if the answer is no.)<\/p>\n\n\n\n<p><strong>2. A subsegment of an existing market:<\/strong> Alternatively, if you\u2019re a smaller company, pick a <em>subsegment<\/em>\u2014an industry, region, customer group, or another factor\u2014of an existing market you can dominate. Winning over a subsegment is easier than winning an entire existing market, and you\u2019ll likely grow more quickly within that subsegment because happy customers will spread the word about your business within their small subsegment community.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: You might appeal to a subsegment of an existing market by <em>differentiating<\/em> your product. According to Alan Lafley and Roger Martin, <a href=\"https:\/\/shortform.com\/app\/book\/playing-to-win\/chapter-4#strategy-2-differentiation\">differentiating means producing a product that\u2019s special in the eyes of the customer<\/a>\u2014has a higher quality or more exciting branding, for instance. Brands can charge more for differentiated products because customers value them more highly than competitor products. You might therefore target the \u201cgourmet\u201d subsegment of the existing chips market by <a href=\"https:\/\/www.shortform.com\/blog\/product-positioning-marketing\/\">positioning your product<\/a> as being for epicures.)<\/p>\n\n\n\n<p>To win over a subsegment of a market, you must identify a customer group within the broader market that has an unmet need\u2014for instance, people with a potato allergy who still want to eat chips. You must then prove that your product is better for your market subsegment than the leading product on the market within that subsegment. In our example, you must prove that your veggie chip is better than the existing potato-substitute chip that dominates the market.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: In <a href=\"https:\/\/shortform.com\/app\/book\/the-22-immutable-laws-of-marketing\/1-page-summary\"><em>The 22 Immutable Laws of Marketing<\/em><\/a><em>, <\/em><a href=\"https:\/\/www.shortform.com\/blog\/al-ries-and-jack-trout\/\">Al Ries and Jack Trout<\/a> contend that you must not only prove that you\u2019re a better product than the market leader, but <a href=\"https:\/\/shortform.com\/app\/book\/the-22-immutable-laws-of-marketing\/1-page-summary#law-8-use-a-message-that-reflects-your-market-position\">you must also communicate to customers that you <em>understand<\/em> you\u2019re not the leading product on the market<\/a>. They advise this specifically to businesses that aren\u2019t at the top of their chosen markets (because customers only buy from you when your messaging aligns with what they understand about your brand), but their advice also applies to companies in a <em>subsegment<\/em> of a market. You might acknowledge your subsegment position to customers by saying something to the effect of: \u201cWe know we\u2019re no Pringles, but we offer something healthier than Pringles\u2026\u201d)<\/p>\n\n\n\n<p><strong>3. A new market: <\/strong>Creating your own market is extremely difficult but also has the greatest potential for you to dominate, claims Dunford. This style is hard to pursue because you can\u2019t use existing market references to help customers understand what your product is: You need to educate them from the ground up about your product.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s an illustration of this: If you position your veggie chip in the \u201cchips\u201d market, consumers will instantly understand what you\u2019re selling (a salty, fried vegetable snack) because they understand what a chip is. However, if you position your veggie chip in a new \u201calternative dehydrated superfood\u201d market, customers won\u2019t <a href=\"https:\/\/www.shortform.com\/blog\/know-your-product\/\">understand your product<\/a> because they don\u2019t grasp and will need to be taught what an \u201calternative dehydrated superfood\u201d is.&nbsp;<\/p>\n\n\n\n<p>However, while <a href=\"https:\/\/www.shortform.com\/blog\/creating-a-new-market\/\">creating a new market<\/a> is difficult, if you succeed, you\u2019ll be the dominating company in a market that\u2019s set up to support your unique strengths.<\/p>\n\n\n\n<p>(Shortform note: Al Ries and Jack Trout agree with Dunford that being first in a market means potentially big success. They elaborate that if you\u2019re first in a market, <a href=\"https:\/\/shortform.com\/app\/book\/the-22-immutable-laws-of-marketing\/convince-consumers-that-youre-the-only-viable-option#law-1-be-the-first-in-your-field\">customers will remember and reach for your brand more than newcomer brands<\/a> and will continue to choose you even if newcomers offer better products. Trout and Ries would likely further argue that if you\u2019re going to create a new market, you should start <a href=\"https:\/\/www.shortform.com\/blog\/customer-education\/\">educating your customers<\/a> about it <em>immediately<\/em> and not waste time trying to perfect your product before setting up the market. They feel that being first in a market offers you so many advantages that the quality of your product is secondary in importance. This approach might make creating a new market easier than Dunford thinks.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the various kinds of markets in which you can sell your product? How do you determine which market is the right one for your product? Positioning means establishing the context for the use of your product, and selling your product in the right market helps provide that context. For instance, if you sell a new snack in the \u201cchip\u201d market, customers immediately know approximately what your product will look and taste like. Keep reading to learn how to target the right market and dominate it.<\/p>\n","protected":false},"author":9,"featured_media":76102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,104,103],"tags":[720],"class_list":["post-76099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-marketing","category-sales","tag-obviously-awesome","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Target the Right Market\u2014and Dominate It! - Shortform Books<\/title>\n<meta name=\"description\" content=\"The right market provides context on how to use your product and gives you a chance to dominate. Here&#039;s how to target the right market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/target-the-right-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Target the Right Market\u2014and Dominate It!\" \/>\n<meta property=\"og:description\" content=\"The right market provides context on how to use your product and gives you a chance to dominate. 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