7 replies
Watching a little tv at 5 am this morning I noticed two commercials that struck me as innovating to a degree.

Now one was hitting the huge dog food niche.This would be a very hard niche to market to if you planned on just feeding Rover. A lot of different dog food makers would be an understatement for sure.

This company decided to drill down to a gourmet group. Smart if you think about it. You can produce the food just ass cheaply but you are targeting a niche who is willing to pay more than the average Fido lover.

Not only do they market to a niche that is willing to pay more, they go even deeper by offering food that has no wheat or corn products in it .. just rice.

Now there have been no test to prove that Spot likes rice better than corn or wheat. Because of a dog's comparatively short life span, no test have been conducted to prove that rice in the food is important.

The producer has hit emotional points by first going above and beyond in assuring you they want only the best for your dog. They plant a seed in your mind that starts a comparison. You know that wheat and corn has a negative effect on the human body and by comparison it must be the same for your dog.

They have drilled down to a niche that has money and are willing to spend it. Made you feel almost neglectful if you do not feed your dog their food. In reality, Rover will walk past the corn, wheat, and the rice to get to a piece of meat and if that meat is half rotten by human standards .. even better.

The next commercial is playing on the vegetarian concept .. to sell chicken. Ironic huh?

They feed their chicken a total vegetarian diet. Totally unnatural to say the least. Being a country boy .. I know a few things about chickens. They are a nasty critter. When allowed to run free range they will eat bugs and worms before anything else. They will peck their own poop to get a worm out of it.

Still this company knows that a vegetarian diet is considered healthy ... even by the majority who doesn't follow it's rigors. They figure those carnivores that like the idea of eating healthier but just are not going to .. well they will eat their chicken because it is healthier for them. Now keep in mind there has been no scientific data to back any of this up.No proof that a chicken fed a vegetarian diet is any more healthy than free range ... as a matter of fact the opposite is true.

Both these companies are creating markets. Once created they then supply a demand they created themselves. Could we in the IM field or any other market not take a lesson and profit from them?
#creating #markets
  • Profile picture of the author mizesean
    Actually, I think a lot of the strongest marketers are already doing it . . . .

    I think most of the launches these days - including mine - are not about the basics, they are drilling down into advanced topics - many topics literally created by the product creator -

    So, yes, I definitely see that as possible in the im niche, and not only possible - but the place for the greatest profit in the future.

    Check out "Blue Ocean Strategy" by Renée Mauborgne and W. Chan Kim
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  • Profile picture of the author Mr. Ken Russell
    Smart thinking! The best markets are the ones no one knows about.
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  • Profile picture of the author Marketing Fool
    Creating a market is always always always so much harder than just finding out what people want and giving it to them. Why make things harder when it's so easy to do it the other way?
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  • Profile picture of the author jbsmith
    Great observations, but they are not "creating markets" really, what they are doing is:

    1. Sub-niching
    2. Positioining to that sub-niche for increased profits.

    We've done this as an entry to many highly competitive markets where you enter via a more specific sub-niche - obviously you would like that sub-niche to be the upper end, but it will work (to get attention) in any sub-niche you identify.

    As a rule, this happens in every market...

    1. Coffee started with add-on to a meal, then discount/donut coffee chains, then upscale like Starbucks...each catering to a subset of the market and taking their piece

    2. Weight loss has moved from generic to rapid to diets, to segregation of diets (carb, vegetarian, etc...)

    An excellent way to enter any busy market (where there is lots of money) is to identify a new sub-group and market to them. You don't create the sub-group, you simply cater to them.

    Jeff
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    • Profile picture of the author Troy_Phillips
      Originally Posted by jbsmith View Post

      Great observations, but they are not "creating markets" really, what they are doing is:

      1. Sub-niching
      2. Positioining to that sub-niche for increased profits.

      We've done this as an entry to many highly competitive markets where you enter via a more specific sub-niche - obviously you would like that sub-niche to be the upper end, but it will work (to get attention) in any sub-niche you identify.

      As a rule, this happens in every market...

      1. Coffee started with add-on to a meal, then discount/donut coffee chains, then upscale like Starbucks...each catering to a subset of the market and taking their piece

      2. Weight loss has moved from generic to rapid to diets, to segregation of diets (carb, vegetarian, etc...)

      An excellent way to enter any busy market (where there is lots of money) is to identify a new sub-group and market to them. You don't create the sub-group, you simply cater to them.

      Jeff
      The dog food commercial may not be creating a market so to speak but the chicken one is.Not too big a niche exist for vegetarian chicken .. at least until they offered it. Even the dog food one has drilled down so far they are really going into a niche they may not be creating but they are having to expand to make it profitable.
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  • Profile picture of the author Thomas Michal
    Creating markets is a terrible idea.

    It takes years and millions or billions of dollars to create a market.

    Anyone that has read what might be the most influential book on advertising Breakthrough Advertising: How to Write Ads That...Breakthrough Advertising: How to Write Ads That... would know this.

    By creating a new market you are effectively educating, not marketing/advertising.

    marketing takes an already shared mass desire e.g. "lose weight" and channels it to a product - weight watchers.

    the innovators don't make the money, it's the imitators that do once the trend catches and enough of the market is educated enough to create a mass desire.
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    • Profile picture of the author Troy_Phillips
      Originally Posted by Thomas Michal View Post

      Creating markets is a terrible idea.

      It takes years and millions or billions of dollars to create a market.

      Anyone that has read what might be the most influential book on advertising Breakthrough Advertising: How to Write Ads That Shatter Traditions and Sales Records: Eugene Schwartz: 9780932648549: Amazon.com: Books would know this.

      By creating a new market you are effectively educating, not marketing/advertising.

      marketing takes an already shared mass desire e.g. "lose weight" and channels it to a product - weight watchers.

      the innovators don't make the money, it's the imitators that do once the trend catches and enough of the market is educated enough to create a mass desire.
      I can promise you Thomas, those of us who have been doing this a while have made our own markets. Many of the things you take for granted today wasn't around 10 to 15 years ago.

      Maybe market isn't even the right tag here. Let's say you have an audience wanting more traffic. In reality they are wanting more profits. It is our job to educate that audience in the fact they need better conversions and not just more traffic. We have to an extent created an audience (or market) for conversions.
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