Identify Focus Markets
Markets are often defined by products, technologies, and demographics. These narrow definitions ignore massive opportunities in core, related, disruptive, and new markets.
JTBD is a powerful frame of reference that can be applied to product design, among other things. For a more detailed overview of JTBD, take a look at “An Introduction to Jobs-to-be-Done (JTBD) in Digital Product Design.”
How do I identify a market?
In order to identify a market, we need to start by understanding what a market truly is. Although many definitions exist, it can essentially be summarized as “an area of demand that we want to be able to supply.” But what are these areas of demand?
In order to identify them, we can start by understanding what they are not. According to JTBD, a market is not a product. As we know, products come and go. For example, many of us likely grew up using a Rand McNally road atlas. We kept it in our car and it helped us get around when we didn’t know where we were. But over time, new tools became available and physical maps were no longer a necessity.
Some may reason a market is centered around a specific technology. But similar to products, technologies also come and go with time. For example, consider Kodak. Their entire company was built around the technology of film. But when other solutions came around that allowed a consumer to do the same thing, namely digital cameras, the added efficiency and convenience slowly made that particular technology outdated.
Perhaps the most common misconception is that a market is a certain demographic of people. We might narrow down characteristics of a particular group and assume that these individuals have more of a demand. But customers rarely think in these terms. No one goes out and buys a product because they think to themselves, “I’m a college student” therefore “I like these products.”
A market is not centered around a product, a technology, or a specific demographic. Rather, markets are really a group of people with the same under-served need in common. Human needs and wants do not invariably change over time, and so focusing on a need or a “job” is inherently much more stable.
What are the different kinds of markets to consider?
Now that we’ve identified what a market is, it’s also important to consider the different kinds of markets that exist. When discussing JTBD, many individuals reference a famous quote by Professor Theodore Levitt, “People don’t want to buy a quarter-inch drill. They want a quarter inch hole.” If we consider this particular example, we may define a core market as individuals who want to achieve a specific job — in this case, individuals who want to make a quarter inch hole in the wall.
Related markets are individuals who may be trying to accomplish a specific job in tandem with this main job. For example, an individual who needs to make a quarter inch hole, may also want to hang or measure things. Over time, we’ve seen that the common drill has accommodated many of these related needs by incorporating features that allow a consumer to measure or level items off.
In addition to core and related markets, we’ve often heard of disruptive markets being associated with sweeps of innovation. It’s easy to think that disruptive markets rise when a specific need is being under-served. While these areas are ripe for net new experiences, usually a specific barrier exists that limits progress. As a result, most disruptive markets actually come from over-served markets.
Consider the rise of Airbnb. The core market — people who need a place to stay when they go away — is oversaturated with options. While hotels give travelers a variety of price ranges and luxuries, there were specific needs within that market that were not being addressed. Staying in a home for example, is often more cost-effective, gives large groups the ability to live together while traveling, and provides more affordances such as the ability to cook. By focusing on an under-served need in an over-served market, Airbnb was able to meet with great success in a relatively short period of time.
To understand what a new market is think about candles. Centuries ago, if you wanted light, you needed to use a candle. But as new technologies formed, candles eventually became an outdated source of light. And now, they serve a new purpose — we often buy candles for sentimental reasons, to create an ambience, or because of a scent.
How can I apply this to product design?
- Our discussion of what a market is has helped us to see that we need to focus on individuals who are trying to get a specific job done. As designers, we may be tempted to align our solutions to a particular product, technology or demographic that currently exists. But focusing too heavily on one of these aspects can limit the potential solutions we explore.
- Another benefit of considering specific “jobs” is that it allows us to pivot quickly when our environment changes. As a result, our efforts are more stable. Remember, the job itself never changes.
By identifying markets, we create more opportunities for ourselves, and ultimately help users get their specific jobs done.
This is article 3 of 6 in the series “Applying Jobs-to-be-Done to Digital Product Design.” Next up, learn how to Categorize the Jobs that Need to be Done.
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