Whether launching a new technology or new release, conducting a strategic analysis of potential markets and competitors will reveal a defensible target market and differentiated market position. This analysis is critically important for focusing your business development activities and shaping the strategic direction of your company.
Through the analysis, you should objectively search for industries representing the greatest opportunity for sales success and sustainable profitability. This includes research to validate preconceived or long-standing assumptions as to the target company type, target contact profile and their core business needs and buying needs.
Proper and comprehensive research will enable you to develop business goals that are measurable, attainable and that foster a positive work environment for all stakeholders.
Below are basic guidelines for defining your strategy and delivering an innovative solution that offers superior value to customers:
- Establish the foundation for all your sales and marketing activities by successfully identifying your target market
Conducting a thorough and objective market analysis is key to learning both the strengths and challenges of your business position, identifying specific market segment(s) to win and dominate and validating your target market assumptions. In tandem, you must identify the strengths and challenges of your key competitors and analyze how you stack up against the competition. Through this research, you are able to define a defensible target market on which to focus all of your marketing activities.
- Differentiate your product offering and establish a clear message and market position
Emerging technology companies are often product-driven and have spent little time really understanding customer needs and problems. Successful companies start with the customer in mind and assure development of a product or service that addresses the customer's problems. This involves addressing all the customer's needs in finding, evaluating, choosing, purchasing and implementing a solution, and ensuring that product purchase, installation and support is easy for the customer. Through this research, you will be able to develop a clear statement of the tangible results a customer gets from using your products or services.
- Develop a business model comprising optimized revenue, cost and cash flow models
Having a defined target market and a great solution that meets that market's needs is essential, but not sufficient; companies must be able to produce, sell and deliver products and services at a profit, and collect cash in a timely manner. Creating a scalable, credible business model that drives profitability and cash flow should be a top priority for any business. To track performance against the business model, companies should develop a performance management system that establishes a clear dashboard of measurements for the whole company.
