STEP 1Market Segmentation
WHAT IS STEP 1, MARKET SEGMENTATION?
Brainstorm how your idea or technology can serve a variety of potential end users. Narrow that list of potential end users to several promising categories, then conduct primary market research to gain more information about each potential end user.
WHY DO WE DO THIS STEP, AND WHY DO WE DO IT NOW?
It is crucial to start the process with a focus on a target customer. Everything else about your business will be based on that focus.
The Market Segmentation step gives you the right frame of mind for the new product right from the start.
PROCESS GUIDE
The single necessary and sufficient condition for a business is a paying customer. If people don’t give you money in exchange for your product, nothing else matters. As I discuss in Disciplined Entrepreneurship, the best way for an innovative startup to lay the groundwork for a solid company is to dominate a narrow, carefully defined market that serves a particular end user. To choose the best market, you’ll do a Market Segmentation that uses primary market research to pinpoint the best markets to draw your attention. Later, you’ll select one of these markets and dig ...
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