To provide market information for your pitch deck, you’ll need to conduct thorough research and gather relevant data about your target market. Here are some key areas to focus on:
Market Size: Determine the overall size of the market you are targeting. This includes the number of potential customers or businesses, the total market value, and any projected growth trends. Use market research reports, industry analysis, or government publications to gather this data.
Market Segmentation: Identify the different customer segments within your target market. Segmenting the market helps you understand the specific needs, preferences, and characteristics of different customer groups. This information is essential for tailoring your product or service and developing effective marketing strategies.
Target Customers: Provide a detailed profile of your ideal customer. Describe their demographics (age, gender, location, income), psychographics (interests, values, lifestyle), and any other relevant attributes. Explain why your target customers would be interested in your product or service and how it addresses their pain points or fulfills their needs.
Competitive Landscape: Analyze the competitive landscape in your market. Identify direct and indirect competitors who offer similar products or services. Evaluate their strengths, weaknesses, market share, pricing strategies, and any unique selling points they may have. This analysis will help you position your business and highlight your competitive advantages.
Market Entry Barriers: Assess the barriers to entry in your market. Determine the challenges and obstacles that new entrants may face, such as high capital requirements, legal or regulatory hurdles, established competitor dominance, or strong brand loyalty. Highlight any unique advantages or strategies you have to overcome these barriers.
Market Opportunities: Identify specific market opportunities that your business can capitalize on. This could be an underserved customer segment, an unmet need, a gap in the market, or a growing trend that aligns with your product or service. Present these opportunities as potential avenues for revenue growth and differentiation.
Identify your market with clarity!
Check out the gap that your product can fill. In other words, find the market that is interested in filling the gap. Make a slide for that.
While making the slide, be sure to consider customer needs. It forms the market. Thus, identify the market by asking yourself these questions:
- Does my solution serve the customer’s perspective?
- This problem is affecting how many people?
- Will my solution be paid?
For this reason, your work involves visiting more business entities and collecting insightful data.
Keep validating your business idea with the questions. If you discover that fewer people are affected by the problem, do you investigate whether the demographic or the problem is correct?
Before presenting the business idea to investors, make sure you are well-versed with the market, customer segments, and consumer behavior.
Before heading to explain the market, be specific about the following terms:
Total Addressable Market (TAM)
It is defined as the number of customers ready to use your product along with the maximum amount of money used by the customers. This number aids in getting an insight into what you can expect from your product or service in the market. TAM, due to its size, is unconcerned about competition or sales teams.
Serviceable Available Market (SAM)
It is a realistic market that takes your competition and your resources into account. It is calculated by taking into account the total market and the competitors you are going to face.
Serviceable Obtainable Market (SOM)
It brings a realistic picture of the market area that you can capture in the coming 3–5 years. It is calculated taking into account the competition, market strategy, pricing plans, and other variables.
Best Practices to follow
- Define your niche by filtering your SOM. Keep in mind geographic, demographic, customer preference, customer base, choices, and hobbies in the filter.
- Forecast that indicates reaching the target group being cost-effective.
- Focus on your initial customers and how to reach them.