Determining Where You Sit In The Market, And What That Means

An eternally relevant piece of business advice is to “research the market before you try to appeal to it.” After all, your business can be the most innovative and interesting brand in the world, but without anyone to serve, it will go nowhere fast. Market research helps you determine what competitors are doing in this space, what customers are missing, and how you might fill that gap.

Yet this isn’t always easy. It’s not as if there’s always a clear seat for you that no other business has noticed, because if there were, you can bet another brand would have tried already. So, market research is not always about finding space as it is making space, and convincing others to go along with that plan.

But how can you even determine where to sit in the market, and what implications might that have from now into the future? It’s worth asking these questions, and in the following advice we hope to get started:

Researching Your Clientele

It’s good to research not only the market trends, but get a real picture of the kind of clientele you’ll be servicing. This might include a personified example of the kind of person you expect to sell to most, be that families, business owners, fishing owners and tech enthusiasts. Here you can determine what level of jargon or complexity they’re comfortable with.

For example, when Uber first came onto the market, they would have accepted that those who had been using the conventional taxi method for years may have found it strange to onboard using an app, and so they rolled out many newcomer promotions and began in cities with large youth populations so as to captivate a market that would be interested. Researching your clientele in this way can help you come to similar decisions, not only for your launch, but for the standard operational timeline after that.

Operational Standards

All companies will need to uphold certain operational standards depending on their competitors and how a product or service is expected to be offered. For instance, many upscale barbers will wash your hair, offer a refreshment, give you comfortable seating, and give you access to salon-quality hair products you can purchase while there. Operational standards can be broken and improved, but it’s important to be aware of why they’re here, and what they can offer you. 

This way, you can determine how your shift in approach might situate you in the market, or if you’re developing a new part of that market for yourself. Uber is a good example to return to – they managed to innovate in a space where many other companies simply weren’t looking at, allowing them to capture a completely unique part of that market thanks to subverting or improving those baseline operational standards.

Regulations & Vetting

Depending on the field you operate in, you may need to offer compliance with certain regulations, and have that compliance vetted from time to time. In some cases, compliance can be optional, but will also help you understand terms you’re agreeing to. For instance, considering why gambling businesses are considered high risk will help you accept the more stringent terms of any insurance or payment provider services, allowing you to cultivate your business idea accepting these parameters that are ultimately there to protect those working with and supplying you, and as such helping you secure your own position in the best way.

Marketing Scope

Depending on your potential market, how you might invest in advertising can wildly differ. For instance, funeral directors, law firms, professional accounting and auditing services, or perhaps those with great responsibilities such as chemical manufacturing firms all need to offer the firm messaging of a professional brand that takes its duties seriously and with pride. Humor is a no-go.

For a new beverage firm focusing on sustainability to a hip and new audience, humor, fun copywriting, and colorful, well-acted advertisements are the name of the game. From the font you select to the promotions you run, from how you talk to your new and loyal customers alike, and how you present the vision and path of your company can make a huge difference as time goes by. Paying clear attention to your possible marketing scope is the natural extension of understanding your place within that market, and these two habits can reinforce one another as time goes on.

With this advice, you’re sure to determine where you sit in the market, and also accept what that may mean, and the implications of your foundational choices for some time to come.