November 6, 2009 § 2 Comments
Imperfect markets are local “pockets” of unmet need within a mature market. Emerging markets are those which are ready to go through rapid growth (in market size). A commonly known problem is the sizing of such markets. A commonly known solution is “niche marketing”.
Investors know emerging markets cannot easily be sized.
How to size and ground your claim?
November 5, 2009 § Leave a comment
Only a few companies have ever been successful selling one product or service into one market for its entire existence. When prices drop, or the market is saturated, or the economy comes to a grinding halt, usually new markets or new products or services are sought. Alternatively, revenues can also be increased by selling a series of related products and services. The razor and blades approach.
The razor and blades model is the concept of either giving away a salable item for nothing or charging an extremely low price to generate a continual market for another, generally disposable, item.
November 5, 2009 § 2 Comments
Even when you are building a market around your product or services, you enter a market, because it is many layers of markets. A person exist not only in yours, but also in the market around a tooth paste, a washing soap, an enterprise or organisational model, a car, and countless other products. If and when your product is close to another product (solves the same or a similar problem), the markets overlap and you enter the other’s market.
Get a lay of the land, and anticipate responses