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What is the simplest way that your brand can dominate share-of-mind? Create your own market where you can dominate.

 

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How you can Create a New Market

At this point, we must introduce two tools: Audience Segmentation and Market Mapping. By going through both these processes, and overlaying the results, you will be able to spot pockets of emptiness, ripe for the creation of a unique niche that you can own!

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What is Audience Segmentation

 

Audience segmentation deals with the consumer. It takes the totality of all possible people who could be consumers (your Total Addressable Market), and breaks this monolith down into distinct groups. 

It’s a complex process, and something we’ve dedicated a full walk-through to in a blog post.

The segments that you want to break people into can be decided by different things, but should take into account demographic information, attitudes, motivations, and behaviours.

You need to carry out thorough enough research, that you can understand why people purchase, when they purchase, and how they purchase. This way you can inform your decisions on how to position your product, since you will have a solid knowledge of the people you’re trying to reach, which is more than skin deep.

We advise that audience segmentation comprise both your current consumers, and people who don’t yet buy your brand. By looking at the general population, and not just your existing customer base, you will start to understand all the possible opportunities your brand has to ‘own’ and develop a unique, but valuable, market.

It’s just as important to know who’s buying your competitor’s products, similar or alternate options to your product, and who’s not buying your product or anything remotely like it. This will allow you to isolate and target potential buyers of the future.

When done properly, you will end up with a snapshot of all the consumers operating in a given market, illuminating the different reasons people buy one product over another; and all the potential consumer who don’t buy anything (but might do).

 

 

What is Market Mapping?

Market mapping deals with the current offering in a given market.

When you map a market, you plot all the brands that already exist, so that you have a clear picture of where you would have to go to colonise new territory.

To map your market, traditionally two variables are chosen.

The Harvard Business Review’s version takes ‘centrality’ and ‘distinctiveness’ as their key qualities to measure. In this case, you would need to conduct a survey to ask consumers about a chosen market.

You would want to ask them which brand they think of first, when thinking about the car industry, for example. You would then want to take all the brands named, and ask consumers how distinctive each brand is. Each brand’s two scores can then be used, like coordinates, to plot them on a market map. 

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There’s magic in the mixing

Understanding consumers or the current market dynamics is an excellent start to looking for a niche you can command as your own. But rather than seeing either of these sets of results in a vacuum, we encourage you to think of them in relation to each other.

By overlaying the two sets of data, you will be able to see which consumer segments aren’t currently engaging in a market, and which areas of the market are underpopulated. It’s extremely likely that the two will match up, to at least some degree, and these perfect meeting points are where you want to position your brand.

 

 

 

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