Both the value proposition and market segment are problems for chicken-and-egg types. Some recommend starting the canvas from the right, that is, by the market segments. However, sometimes the value proposition doesn't make sense. Ann Marie Puig, an entrepreneur and successful global business consultant, offers valuable insight into how to select the right market segment.
First, we need to find markets that will accept our value proposition. The entrepreneur must first analyze the macroeconomic indicators. Next, he or she must examine the microeconomic information in the market to determine how the product can be adapted to this environment.
States Puig, “You must first determine what the demand is for the product. This means determining who the end users are and what their buying motivations are. Also, where they live, their location, and their seasonal interest in the product. The employer should then analyze the product that would meet the demand.”
This includes its components, design, packaging and manufacturing process, as well as technical standards and approvals. The third thing an entrepreneur needs to do is look at the local market and determine who their competitors are and where they are located.
It can be as simple as looking at what the people in that industry are discussing on social media. It also involves obtaining all the estimates necessary to understand customer needs and benchmarking while also investigating and testing potential competitors. This will allow you to identify the value proposition and potential clients.
Puig asserts, “The entrepreneur must listen well. Consuming Medium articles, podcasts and books, as well as magazines and books, which are not related to your field, can help you connect creative ideas and identify potential markets.”
Many books, courses and incubators tell you to survey many people in order to validate your solution. But sometimes, it's better just to invite one prospect or one potential benefit to your value proposition.
It is better to get to know a sector in-depth than to just ask a bunch of random people. They will probably tell you what you want to hear. You can search the Internet to find similar solutions to yours in other markets, listen to the problems of your friends, watch the news, and keep your ears open to hear what they have to say.
After you have found a candidate, connect with a representative of that industry, preferably an opinion leader, on LinkedIn. You can also join a Meetup group for people in the same industry or attend a networking event.
Talk to the candidate for at least an hour, but not about the product. Ask him about the challenges they face each day and what solutions they have tried. If your product is attractive, an industry expert has probably already created something similar, but has not done so because of fear, or lack of interest.
Once you are certain that the niche is right for you, create a landing page. This can be a website or Facebook page with basic information about your product or service but also focusing on your value proposition. It will include a form where visitors can sign up for news and updates. You can then send the address to everyone you know who is interested in the industry.
Then, you can paste the URL into Facebook groups and ask your friends to share it. This will allow you to see how many people have subscribed or contacted you. A landing page that is well designed and user-friendly focuses on the value proposition.
Make your first sale. Even if you didn't do it, you could still apologize for the mistake. If you have a great market problem, early adopters (people who don't hesitate to try new products and services) will be happy to buy it pre-sale. They won't mind waiting for delivery. You can only get the best validation if someone invests in your idea.
It is important to pay attention and be aware of the signals. You can research on the Internet, social media networks and public places about potential markets that could benefit from the value proposition. It's okay to modify it. Many large companies have done this. Talk to as many people about your niche as possible, but don't forget to focus on the depth and not the volume. First, make the sale. This is the best validation you can get of your market.
About Ann Marie Puig
Ann Marie Puig is a business consultancy expert. She is bilingual in Spanish and English, and provides reliable and expert business consultancy services based on years of experience. She is extremely knowledgeable in current technology, eCommerce and a variety of industries. As a result, her clients are able to trust her to offer a more personal service. When she's not active consulting for a business, she dedicates her time to her family and her community.
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