When the strategy team lays out the go-to-market plans as part of the market sizing and business potential exercise, they are aware of the nuances of the market from a broader business lens.
However, the clarity to the execution team (sales, marketing and operations) needs to be very well articulated in terms of the initiated vs un-initiated target groups.
The initiated group are potential customers who are well aware of the product/service you sell. The uninitiated group consists of potential customers who are not necessarily aware of the product/service you sell.
It needs different approaches to reach out to the group which is already being served, vs the one which can be served but isn't being served. Often the execution team approaches both these customer bases from the same lens.
An example from the insurance industry.
Suppose you're part of an insurance company that sells various kinds of Health Insurance. The person who has previously purchased a health insurance (from another company) and the one who does not own a health insurance and fundamentally two different target groups.
The first one is most likely aware of the product or service, and to make a switch needs a different approach to marketing and sales. Not just switch, there can also be scope for additional services to be sold.
Vs the second one is most likely uninitiated on the nuances of evaluating what to look for, or for that matter the importance of owning a health insurance. Here the sales and marketing approach will be education and information led.
Based on the industry, time and place, the proportion of the target market in the initiated vs the uninitiated category changes.
Example, in the early childhood education sector, the initiated group of parents will be near ~100% for a country like Singapore. Vs the uninitiated group of parents will comprise the largest group in a country like India.
Therefore preschools in Singapore need to market their services to parents is a very different way compared to preschools in India (in fact, there will be much more public policy led awareness that would need to be driven in India for the initiated target market to expand).
Its a simple idea -- the way you approach the initiated and the uninitiated target groups in the market needs to be fundamentally different. 💠
Have you noticed this in your industry?
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