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Definition of market boundaries Δ and 2 application explanations

The market boundary, chivalrously speaking, is the market space for an enterprise or brand to provide products and services in the process of enterprise operation and brand marketing.Broadly speaking, in the relationship between market supply and demand, different industries and product categories coexist and coexist, and they are mutually acceptable security boundaries in the process of competitive expansion.

Definitions and Formulas

米国生活The market boundary is defined as the variable δ (or Δ, pronounced: delta), defined as above, with the formula:

Market boundary δ = total number of users x total user demand

The relationship between the total number of users and the total demand of users

The total number of users and the total demand of users are two concepts, but they are related or have mutual influence.

To better meet the needs of users, it is possible to increase the share of the total number of users, thereby increasing the market share.

For example, Baixiang instant noodles is a high-quality product in my memory, but since "instant noodles are still better in bowls", high-quality has lost to other needs of users.At that time, when we traveled by train, did we really need to fill our stomachs more easily, and was it easier to get a hot noodle when we went out to play?In this way, consumers can sacrifice quality needs with little difference and choose portable use needs with obvious differences.

Market Boundary Δ-Value Enhancement Model-米国生活

Business Type Classification

In the business of an enterprise, depending on the types of products and services provided, there may be several situations:

  • single product and service
  • Integrated complex products and services
  • Multiple lines of products and services

For single products and services such asPocket WiFi, in general, the total user demand is single, and it is a directional solution in a certain field of a certain industry. According to the formula defined by the market boundary, expanding the market by expanding user demand is limited, and the total number of users is limited. Expansion, from the local city to the country to the world, opens up markets.

For comprehensive products and services, they are generally platform companies, such as Amazon, Taobao, and JD.com, which can cover more user needs through comprehensive products, thereby obtaining more total users and forming a market share.It also meets the needs of more users to obtain more customers. At the same time, independent warehousing and logistics and fast delivery are still one of the needs of users in the transaction process. Better meet the needs of users, you can get Users with such needs.

For multi-line products and services, such as, doWebsite SEO, we can do domestic, domestic search engine SEO is really impossible to do, we can do Google SEO, Douyin SEO, brand SEO, based on the same core framework, we can increase technical capabilities in other fields, through our own capabilities To improve the user needs met by products and services, and then reach more users.In the process of enterprise business transformation, it is necessary to consider the acquisition ability, production capacity, technical service quality and other issues of the target market.

Safe Boundary S

We know that the total market demand is limited. It is impossible for every industry to eat up the market, and it is impossible for all of them to be monopolistic enterprises. Monopoly without good life is harmful to the market ecology.They exist but are invisible: the security boundary of the unified market, the security boundary of the industry market, and the security boundary of the enterprise's own market.

The security boundary variable is defined as S, (meaning Security, crossing the security boundary will reach the death boundary)

Application of Market Boundaries

Application XNUMX:米国生活By extending website SEO to brand SEO and overseas Google SEO, we can meet the needs of more users by improving our own technical capabilities, thereby expanding the market competition space.

Application XNUMX: The domestic pomalidomide market, through competition with Indian pomalidomide, expands users who have a demand for Indian medicines.However, theoretical expansion needs to be realized with actual brand marketing methods.

Market boundary applications - pomalidomide - lenalidomide

Extended reading:

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How to deal with negative brand public opinion?

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