Marketing Strategy 101 states that the first thing to do when evaluating the potential of an idea, is to determine the size of the target market.
This approach suggests that the entrepreneur is entering a market that’s already established and is coming in as Johnny or Jane Came Lately. Differently put: as a late entrant.
Late entry into a marketplace requires a strategy of taking customers or clients away from established competitors. While it’s hard without a winning unique selling proposition at least, the market is already established and does not have to be sold on the merits of the concept.
For instance, any entrepreneur coming up with an idea of an automobile already has a target market and has to get his or her product noticed and sold.
On the other hand, it happens that sometimes, there’s no market for a given idea. The entrepreneur just has to figure out the target audience. Those are clients or customers who would react positively to the idea’s appeal and buy in.
This is market pioneering at it’s finest. The only problem though is that it may take a while for this market to be recognized and trusted. Thus, the strategy is to sell the merits of the concept first.
For instance, I know of an entrepreneuse who’s considering starting the first eveningwear rental boutique in her city. Her strategy will be to sell the “eveningwear rental” concept first to people that this idea would appeal to.
Being first is certainly more profitable if the concept introduced is a winner but it’s a riskier proposition for an entrepreneur. On the other hand, being a late entrant makes it hard to get noticed but it’s a less risky endeavor.
It should be noted that entrepreneurs who win big such as Bill Gates, tend to be the ones who pioneered a certain concept.
