{"id":76683,"date":"2022-08-14T10:08:00","date_gmt":"2022-08-14T14:08:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=76683"},"modified":"2022-08-25T13:06:18","modified_gmt":"2022-08-25T17:06:18","slug":"how-to-develop-a-new-market","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-develop-a-new-market\/","title":{"rendered":"How to Develop a New Market to Expand Your Business"},"content":{"rendered":"\n

Why does your business need a new market? How can you develop a new market?<\/p>\n\n\n\n

A new market is where you’ve created a novel solution for consumers. This type of solution isn’t just improving on other solutions because it completely alters peoples’ lives and renders old markets obsolete.<\/p>\n\n\n\n

Check out how to develop a new market, according to the book Play Bigger<\/em>.<\/p>\n\n\n\n\n\n\n\n

Step 1: Develop a New Market<\/strong><\/h2>\n\n\n\n

The authors write that the first step of learning how to develop a new market and become its winner is to identify your market by pinpointing an unmet need in peoples\u2019 lives or a new way for your existing technology to fill an unmet need<\/strong>. At your low-tech company, you might identify the unmet need for less intrusive technology. Your market, then, becomes the market for low-tech devices.\u00a0<\/p>\n\n\n\n

Contrary to popular belief, you don\u2019t first<\/em> create the product and then<\/em> decide what its market will be, note the authors. Instead, as we\u2019ve discussed, you must build your product, market, and company at the same time <\/em>for them so they support each other and create the flywheel effect<\/a> you need to become the market winner.<\/p>\n\n\n\n

The authors suggest identifying an unmet need in five parts:<\/p>\n\n\n\n

Part 1: Decide who will identify the unmet need.<\/strong> The CEO must support this effort, but someone with an outsider\u2019s perspective\u2014a firm or someone hired for this purpose\u2014must spearhead it because identifying an unmet need requires a fresh outlook on the company and product. Plus, this person must be able to dedicate themselves exclusively to this work. <\/p>\n\n\n\n

(Shortform note: If your company doesn\u2019t currently have the resources to hire an outside firm or new employee, consider recruiting trusted friends or business associates into a casual business support group<\/a>. You can meet regularly and offer each other fresh perspectives on your respective business questions<\/a>.)<\/p>\n\n\n\n

Part 2: Conduct research on the unmet need. <\/strong>The person leading the work must then gather information about the company, what it does, and the market it currently occupies. They can do this by speaking to company leaders, board members, and advisors, and by researching your industry. However, this person shouldn\u2019t ask customers for their opinions. This is because the market you\u2019re creating will be totally new, so customers won\u2019t yet understand the need you\u2019re fulfilling and will give you unhelpful feedback. <\/p>\n\n\n\n

Part 3: Hold ideation meetings with leaders. <\/strong>Next, the leader of this work must have a (preferably day-long) meeting with company leaders to teach them about the importance of creating a new market<\/a> and brainstorm how to establish the right new market. These are the topics you should brainstorm and discuss: 1) customers you want to target, 2) the problem your product solves in the new market and its solution, 3) how you can express this problem in a way that will resonate with the customer, 4) the mindset shift your customer must make to embrace your new market and product, 5) what your new product is. <\/p>\n\n\n\n

Part 4: Pick a name for the new market. <\/strong>During these meetings, you\u2019ll start to identify a name for your market. Settling on a good final name may take a while, and if that final name is somewhat technical, you may need to do extra work to help customers understand it. The name should be two to three words long (for example, \u201clow-tech tech\u201d for your low-tech device market). <\/p>\n\n\n\n

Part 5: Create a document of your work. <\/strong>This should include: 1) a description of the new market, 2) the market ecosystem (the third-party developers, consultants, stores, analysts, and partners with whom you\u2019ll work in tandem), 3) the mindset shift your customer must make to embrace your new market and product, 4) the final market name, 5) the reason for the new market.<\/p>\n\n\n\n

In the case of your low-tech device company, these points might be: 1) A market for people who want less invasive technology, 2) Retailers, developers, and analysts, 3) Your customers must go from thinking that more<\/em> technology is better for their lives to thinking that less technology is better for their lives, 4) \u201cLow-tech tech,\u201d 5) Technology has negatively affected people\u2019s mental health, and we should be using less, not more, of it.<\/p>\n\n\n\n

Step 2: Identify and Express Your Company\u2019s Take<\/strong><\/h2>\n\n\n\n

The authors write that once you\u2019ve identified and developed your new market, it\u2019s time to craft your company\u2019s take: <\/em>an identity, guiding principles, outlook, and story about how your company solves a problem differently than other companies<\/strong>. <\/em><\/p>\n\n\n\n

A take is what consumers connect to\u2014they can identify emotionally<\/em> with your principles, story, and outlook. This is especially important when establishing a new market: You must<\/em> give consumers a story and identity to hold on to; otherwise, you won\u2019t establish your company as important and different in consumers\u2019 minds. Importantly, this take must help change consumers\u2019 mindsets so they embrace your new solution to the old or new problem\u2014as we discussed earlier in this guide.<\/p>\n\n\n\n

A strong take separates exceptional companies from merely good ones, add the authors. You can tell when a company has a strong take because you know what the company\u2019s about, what it stands for, and how it\u2019s different. The authors mention Whole Foods as a company that has a strong take. Whole Foods believes in providing high-quality, environmentally minded, natural, and organic products. It solves the problem of obtaining such specialty foods in a new way: by creating an inviting, fun shopping environment in which to buy them all at once. <\/p>\n\n\n\n

Step 3: Remaining the Market Winner<\/strong><\/h2>\n\n\n\n

Now that you\u2019ve solidified your market in customers\u2019 minds and made yourself that market\u2019s winner, the authors explain how to remain the long-term market winner in two steps: 1) by expanding your market or creating another new market and 2) by establishing a <\/strong>flywheel effect <\/em><\/strong>in that market<\/strong>. The authors claim that you must complete the first step because e\u200b\u200bvery company eventually reaches most customers in its market and must either create a new market or expand its current market to continue growing. Companies must do this over and over to remain market winners. For instance, you\u2019ll eventually reach all customers who want to minimize their tech use in your low-tech devices market and might therefore expand that market to include customers who not only want to be on their phones less, but also want to use more analog products, by selling paper agendas, notepads, and so on.<\/p>\n\n\n\n

Then, create a flywheel in that new market because, as we\u2019ve discussed, a flywheel composed of aligned company, market, and product makes you the market winner. Beyond aligning company, market, and product, the authors recommend pushing the flywheel forward by strengthening your company take, holding continued events and campaigns, collecting data that lets you build better products, and hiring the right talent. Your company might thus refine its take as it grows, elaborating on the problem it helps solve. You might also ask job applicants specific questions that help determine if they\u2019re a good cultural fit.<\/p>\n","protected":false},"excerpt":{"rendered":"

Why does your business need a new market? How can you develop a new market? A new market is where you’ve created a novel solution for consumers. This type of solution isn’t just improving on other solutions because it completely alters peoples’ lives and renders old markets obsolete. Check out how to develop a new market, according to the book Play Bigger.<\/p>\n","protected":false},"author":14,"featured_media":46315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79,104],"tags":[725],"class_list":["post-76683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","category-marketing","tag-play-bigger","","tg-column-two"],"yoast_head":"\nHow to Develop a New Market to Expand Your Business - Shortform Books<\/title>\n<meta name=\"description\" content=\"If you want to be a winner in the market, you have to develop an entirely new market. 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