Using Adwords to Determine Market Type in a Customer Development Process
Topics :
Start Ups ·
Internet ·
Oct 27, 2009 | 0 Comments
Determining your market type can be critical in defining your business strategy. Steve Blank talks about the importance here. But it is quite confusing sometimes to even experienced thinkers in the area such as Nivi.
There are 3 types of markets but the two main types of markets are:
One strategy to figuring this out could be to use Google AdWords. If customers are searching in large volumes for "printers/chips/laptops/mailing list software/content management software" for which your solution is trying to do a better job, then you are probably in an "existing market".
But, if you find through the Google AdWords site that the way you describe your solution and the keywords that you imagine your ideal customer will use, are not of a high volume then you are perhaps in a New Market. It maybe better to try some other form of marketing such as display advertising or educating customers in some other way. An example of marketing a product for a new market is illustrated via Chris Dixon's blog post when he talks about marketing SiteAdvisor (a company he co-founded) which was generally considered to be a new market / category. He talks specifically about two areas: 1) how information and influence flows in your market, and 2) when and where people use and/or purchase your product.
Marketing tactics differ for each type of market & researching through Adwords could save you a lot of heart burn in figuring out the market you are in.
Determining your market type can be critical in defining your business strategy. Steve Blank talks about the importance here. But it is quite confusing sometimes to even experienced thinkers in the area such as Nivi.
There are 3 types of markets but the two main types of markets are:
- Are you in a New Market i.e. enabling customers to do things that were not possible before OR didn't realize that there was a need (e.g. Hand held devices etc...)
- Are you in an existing market i.e. your customers know they have a problem or a need and they are actively looking to fulfill that need or already meeting thier need and your solution is better/faster/cheaper
One strategy to figuring this out could be to use Google AdWords. If customers are searching in large volumes for "printers/chips/laptops/mailing list software/content management software" for which your solution is trying to do a better job, then you are probably in an "existing market".
But, if you find through the Google AdWords site that the way you describe your solution and the keywords that you imagine your ideal customer will use, are not of a high volume then you are perhaps in a New Market. It maybe better to try some other form of marketing such as display advertising or educating customers in some other way. An example of marketing a product for a new market is illustrated via Chris Dixon's blog post when he talks about marketing SiteAdvisor (a company he co-founded) which was generally considered to be a new market / category. He talks specifically about two areas: 1) how information and influence flows in your market, and 2) when and where people use and/or purchase your product.
Marketing tactics differ for each type of market & researching through Adwords could save you a lot of heart burn in figuring out the market you are in.
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