In previous articles, we covered the first 2 levels of the growth strategy framework used in upstream marketing. In case you missed those, here are the links:
- Article 1 – https://equibrandconsulting.com/alignment-your-key-to-business-brand-growth/
- Article 2 – https://equibrandconsulting.com/growth-strategy-frameworks/
Now, welcome to Level 3 of the growth strategy framework. You’ll quickly discover why it offers benefits over the previous two levels.
A third-level framework:
- Articulates customer segments and their attitudes, needs, and behaviors
- Starts to identify growth opportunity areas to pursue, including market sizing
Growth Strategy Framework: A Quick Summary
In determining where to best focus business growth, it’s wise to consider 3 levels of strategic decision making and corresponding frameworks.
Here’s a quick recap:
Level 1 involves whether to pursue “closer in” or “further out” opportunities. Ask if your focus should be on the core business, adjacent areas, or diversification?
Level 2 uses traditional market segmentation methods to segment customers. Example methods might include: geographic, demographic, behavioral, and attitudinal.
Level 3 is the domain of upstream marketing. By drawing on a proprietary customer demand framework, it directs where to focus precisely—which customers, needs, and offerings. The three levels are described below.
Level 3: The Domain of Upstream Marketing
A Level 3 framework differs from Levels 1 and 2 on several key points – and in that, offers obvious benefits over the previous two levels. It:
- Is proprietary
- Emphasizes new market spaces
- Provides alignment of products with the marketplace
- Acts as a common platform shared within the organization
The Level 3 framework itself consists of three interrelated elements, as seen in Figure 1 below:
- customer segments
- potential needs
- strategic opportunity areas
When you’re thinking about a customer demand framework, envision a strategic chessboard: Across the top, align customer groups that your organization could potentially serve. Then, on the left, group market-based opportunities:
- What needs do customers have?
- Which benefits are they seeking?
- What jobs need to be done?
Any areas of unmet need represent unoccupied white space opportunities.
Become a Master Chess Player…in Marketing
Like a master chess player, this allows a company to strategically identify, plan for, and move into new demand spaces. Then the magic happens: it makes competition irrelevant.
The most powerful Level 3 frameworks join together standard segmentation methods with proprietary market insight. Customer attitudes, behaviors, and demographics are combined into a composite sketch of opportunities. The framework then informs value proposition creation, brand positioning, customer experience, and product portfolio development.
To be clear, a Level 3 framework is not about dividing up existing–and often shrinking–market opportunities. A Level 3 framework is designed to uncover and size new market spaces to capture unmet demand.
You want to find the deep that unites – by aggregating demand across customers and non-customers to maximize brand and market opportunities.
Want to learn more about these frameworks and how to use them to grow your own brand? Enjoy a complimentary download of the third chapter of our best-selling book, Upstream Marketing. Get quick access here.
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