Chapter 4 – The Pull of the Market
“The greatest danger for a new venture is to “know better” than the customer what the product or service should be.” – Peter Drucker, Innovation and Entrepreneurship
Developing a Strong Market Orientation
- This is why hard work, cool technology, lots of funding, or superior talent won’t, by themselves, guarantee startup success. In fact if the market is right, these attributes might not even be necessary. A founder with questionable skills, little money, and a B-grade product might still launch a business by stumbling into a white-hot market, which can disguise and cure a lot of ills.
Emphasize Your Market
- Do you see a product being sold or a human need being met? Do you see a hamburger or hunger?
- In the mid-1990s, Stacy Madison, a Boston social worker, dreamed of opening a health food restaurant. With very little money, she and her business partner, Mark Andrus, decided to start with a small sandwich cart in downtown Boston, selling all0natural pita0wrap sandwiches. Hungry customers were soon forming long lines down the block. To keep them interested while they waited, Stacy and Mark served them seasoned pita chips baked from leftover pita bread. Customers flipped over the chips, convincing Stacy and Mar to package them for sale in stores.
Know Your Market
- Seth Godin, in his 2005 book, All Marketers Are Liars, wrote that “all marketing is about telling stories … painting pictures they (customers) choose to believe.”