When to Listen to the Analysts – While Considering Adjacent Market Entry

In my last post, I expressed the view that companies should not focus on what analysts are saying about their market.  Instead marketing organizations, typically staffed with 10-100X the personnel of analyst groups, should conduct their own primary research about competitors, new products and market trends.  But there are many scenarios in which analysts can create tremendous efficiencies and competitive advantage for marketing departments.  One such scenario is when companies are contemplating entry into an adjacent segment.

Four Dimensions for Expanding Addressable Markets

A good marketing executive should always spend a percentage of their time contemplating entry into adjacent markets.  In today’s hyper-competitive technology sector, market segments mature rapidly and new products quickly become obsolete.  Consequently, every company needs a well-designed strategy to expand their addressable market opportunity if they want to continue to grow.  There are four dimensions by which you can expand your addressable market – new product lines, new geographic regions, new vertical industries and new customer segments:

Chris Anderson’s Book Free – Worth Every Penny!

Chris Anderson’s Free is a must read for anyone responsible for pricing, strategy or marketing in a corporation. I must admit that before reading the book I was skeptical of free. I have always viewed free as just a marketing gimmick that was transparent to most consumers. However, after reading Anderson’s explanations I have changed my perspective 180 degrees.

Outside-In Marketing

One of the consistent trends I have found is that corporate marketing departments in the tech sector are full of “inside out” thinking. Decisions are based upon internal goals, priorities and opinions of a company rather than customer needs and market drivers.