!Goal
Recognize that market type drives:
* Sales curves
* Marketing strategies
* Revenue and cash flow needs
* Test alternate market types on your company product
See [[Four types of startup markets]]
!Checklist
* Do you have a new product in an existing market?
* Do you need to redefine / reframe a market?
* Or do you want to create an entirely new market?
** Is your product / service a substitution for something customers already have?
** Is it a replacement?
** Is it a variant on something already out there but can be 'respun' into something new?
** Is it something totally new?

''//Positioning in an existing market//''
* If it is a new product in an existing market, define the basis of competition:
** Positioning the //product// is the basis of competition
** Picking the correct axes for the basis of competition is critical. For example:
*** feature / technology axis
*** price / performance axis
*** channel / margin axis
** What are the revenue and burn rate curves look like for this market type?
* Who is driving the existing market?
** Are there any existing standards? If so, who's agenda is driving these standards?
** Do you want to embrace the standards, extend them or replace them?
** Are there different global issues than just national onces?
* Do you have some advantage or appeal among any vertical or horizontal market segment?
** Which markets or segments?

''//Positioning in an existing market you want to resegment//''
* If it is a new product in an existing market you want to resegment, define the basis of competition on how you want to change the market:
** Positioning the //change in the market// is the basis of competition.
** This is driven by some new feature of the product or service that redefines the market
** Redraw the market map and showing which feature you offer that drives this is critical. For example:
*** New customers
*** New distribution channel
*** Feature / Technology axis
*** Price / Performance axis
*** Channel / Margin axis
** Why would thousands of new customers believe in and move to this segment of the market?
** What are the revenue and burn rate curves look like for this market type?
* Who is driving the existing market?
** Are there any existing standards? If so, who's agenda is driving these standards?
** Do you want to embrace the standards, extend them or replace them?
** Are there different global issues than just national onces?

''//Positioning in an existing market you want to resegment//''
* If it's a new market, create the market:
** Positioning the creatio of a //new market// is the basis of competition
*** List the closest markets to ours (a market is a set of companies with common attributes)
*** Draw the market map with you in the centre
*** Give your market a descriptive three letter acronym
** Why would thousands of new customers believe in and move to this segment of the market?
** What are the revenue and burn rate curves look like for this market type?

!Exit deliverables
* A preliminary hypothesis on the Market Type

Part of: [[Customer Development Checklist]] - [[Customer Discovery]]
Part of book: [[The Four Steps to the Epiphany]]
bag
mbi_public
created
Sat, 20 Nov 2010 13:14:22 GMT
creator
dirkjan
modified
Sat, 20 Nov 2010 13:14:22 GMT
modifier
dirkjan
tags
Checklist
creator
dirkjan