2009 Q2 Strategic Questions in Market Identification
When market opportunities are identified, it becomes critical to assess the market to the fullest extent possible, recognizing that managers seldom have all the information necessary to make perfect strategic decisions prior to investing capital and resources. Acknowledging this deficiency, the accompanying list represents a list of questions that should be asked as an integral part of the market identification / feasibility process.
- Who are the customers for our product or service?
- What are the customers’ likes and dislikes about the existing product offering (including buying motives)?
- What product forms are customers presently using? Why?
- Why do they want it in its present forms? Do they have a choice? Are there alternative forms that better serve their needs?
- What motives drive customer purchase habits today? Tomorrow?
- What is the prevailing pricing structure?
- Who are the sophisticated customers who both understand and care about product benefits?
- Who are the unsophisticated customers whom time and resources should not be wasted against?
- Through what distribution channels are customers obtaining existing products in the market?
- How should our products be differentiated and positioned?
- Who are present and potential competitors and why are they successful?
- What are the perceived objectives, strengths and weaknesses of key competitors?
- What brands are established in the market? How strong and expanded are they?
- What can be done with our product or services that are unique, profitable and hard to duplicate?
- What is the market potential ($ and units) for a supplier of high quality?
- What are the key category growth trends and how can they be capitalized on?
- Which target markets offer the most attractive growth potential?
- What markets are desirable to reach in the future? Why? What are their needs?
- What key success factors drive success in each market segment?
- Which distribution channels offer the best market opportunities? Short/long term?
- What options exist for developing, processing, selling, marketing, and distributing?
- What obstacles are likely to be encountered? How can they be circumvented before it costs money?
- What is the financial potential?
Using this checklist of questions will help minimize surprises once a decision is made to move forward with the market opportunity.