One reason why your business could be unsuccessful is not because your product is bad, or your marketing bad, but that your market opportunity is too small.
I keep reminding myself that the core of the word marketing is “market” – that collection of people or companies that are potentially interested in your offering. If there aren’t enough of them – if your market is small – you are doomed to failure.
It’s counterintuitive: Great product. Great marketing. Business failure. What did you do wrong? Not much.
It brings us to a very basic step in preparing a marketing strategy: you need a view on the size of the market. Even if this is simply a best guess, it is critical to have some idea of how many potential clients or customers are out there. You’ve got to quantify the market. Failing to do this – to even try doing this, means you are operating in the dark!
Once you understand the so called “size of the prize” – the potential of the market, in money terms, you can start to make some back-of-the-envelope calculations on what portion of that pot of money you want to lay claim to. In simple terms, your market share. With this info at hand, you can start working backwards to understand what marketing investment you are required to make. Vintage marketing strategy.
It is only at this point, once you’ve understood what investment you are willing to make, that you can decide on the marketing activity to pursue. How much are you willing to spend on a website? What social media channels will you use? Who will manage it for you? Do you need a gold-plated business card?
It’s a far cry from the ad-hoc approach most business owners take to marketing.
Do you have any idea — even just a guess, of how much money, yes money!, potentially lies at the end of your business rainbow?