PHASE 1: MARKETS
Focus on the markets where you can develop and exercise pricing power.
Identifying markets where you will have a competitive advantage will fuel the growth of your business. Not all markets are equally attractive from a pricing perspective. Mature, low-growth markets where products have little opportunity for differentiation don’t allow much room to create and capture value. Companies grow faster when they can enter growth markets and set prices to capture the value that their differentiated solutions provide.
1. You know the market size, growth rate and served market share.
2. Your growth rate is above the market growth rate.
3. You have identified how many competitors you have for each segment and who they are.
4. You have identified the type of each competitor (Direct, Indirect, Replacement).
5. You have identified the predominant type of competition in each market segment (Price, Value, Relationship).
6. You have identified the growth rate of each competitor.
7. A portion of your growth comes from increased average selling price (ASP).
8. Your growth goals require (a) a share gain from competitors or (b) a share of market growth is sufficient.
9. You have identified which market type you compete in (Negotiated vs. TIOLI).
10. You frequently conduct Market Problem Analysis to identify the actual problems your customers are trying to solve today.
• Market Segment Definitions
• Market Attractiveness Criteria
• Market Adjacency Identification
• Market Share
• Total Available Market (TAM)
• Market Problem Analysis (frequency, pain, willingness to fix)
• Product Win Strategy