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Market Types

Where can you grow?

You need to specify in what kind of market you can achieve growth. Sales, marketing, business and service development differ radically by three main market types.

Existing Market

A solution to customer problems exists, either yours or competitors.

Aim

Add value to customers

Actions

1. Expand sales through new uses for your service

2. Generate new sales by targeting a new (demographic, psychographic, institutional) segment

Focus

Service – Market – Customer Fit

Resegmented Market

A solution to customer problems exists. Can you address customers’ specific needs differently than competitors?

Aim

Add value to customers

Actions

1. Resegment by employing a niche strategy, or

2. Resegment the market as a low-cost player

Focus

Service – Market – Customer Fit

New Market

Innovative service that has never existed before. Unknown customer problems and thus, unknown solutions.

Aim

Create value to customers

Actions

1. Discover and define target customers

2. Create customer adoption, and

3. Drive demand

Focus

Problem – Solution Fit