7 Key Considerations For Building A Product For An Underserved Market

Considerations For Building A Product For An Underserved Market

Gaining market share is an important aspect of growing a business.

Because of this fact, many organizations focus their efforts on casting as wide a net as possible in their sales and marketing methods.

However, this tendency can also lead to the development of underserved markets that are seemingly too small to service.

But when you look a bit closer, these individuals and businesses have a number of unmet needs that discerning brands can leverage for added visibility and higher conversion rates.

By focusing more attention on underserved markets, businesses can get the insights they need to create highly engaging and profitable products for their customers.

Understanding Market Challenges

Before you can build a successful business product, you first need to have a clear understanding of the target audience you’re trying to reach.

The great news about putting more focus on an underserved market is that you have you can have a much narrower approach to this process.

Similar to larger markets, you’ll want to invest in researching your niche customer segments to help identify the demographics you’re working with, their pain points, and, most importantly, the products or solutions they need to solve them.

Conducting surveys or putting together focused testing groups is a good place to start with this initiative.

During your research, try to identify the nature of the challenges your audience is experiencing.

For example, if you’re developing a product designed to improve property management effectiveness or streamline communication within a homeowners association (HOA), you should consider certain struggles your audience may be experiencing when accessing information online or using other digital platforms.

Focusing on Accessibility and Affordability

It’s important to consider “why” underserved markets aren’t being serviced by other brands. In many cases, there may be very specific requirements that larger organizations may not have the time or capabilities to meet when targeting larger market segments.

One of these requirements could be additional accessibility to the products they use.

This could be represented by needing products that support multiple languages or are compatible with different assistive technologies. 

Another common need for underserved markets is the ability to acquire more cost-effective solutions.

Although focusing on providing the highest quality products with extensive feature sets can be beneficial, it’s also important to consider ways to present more cost-effective products with more flexibility in subscription options or more adaptable pricing plans.

Building Credibility

Gaining trust quickly is critical when entering underserved markets.

Communities are together and often weary of trusting new brands. Because of this, transparency is critical.

Through your marketing initiatives, clearly communicate your brand’s intentions and express where and how you’re best suited to address their needs.

Another great way to prove good intentions is to partner with community leaders or organizations that can strengthen your message.

When it doubt, it’s important to let your product speak for itself.

You can do this by offering free trials or demos and leveraging any customer testimonials you have on your website and throughout your marketing materials. 

Planning Marketing and Distribution

Access to an underserved market presents its own challenges.

When marketing to these segments, you need a strategic approach to marketing and distribution. 

Traditional channels may not be accessible to niche markets, so it’s important to identify the platforms or communication methods preferred by your target audience.

This might involve partnering with local media outlets or utilizing word-of-mouth marketing strategies.

Distribution is important, and you should consider it before targeting certain markets.

If your niche audience has limited access to certain types of technology or transportation, traditional retail channels may not be sufficient, and you may want to consider alternative distribution models. 

The primary goal here is to make your product as easily accessible as possible while removing any barriers that might prevent them from benefiting from your products.

Considering Sustainable Business Practices

Before you advertise your products to niche markets, you should establish a sustainable business model.

But this means much more than having disciplined bookkeeping and simply turning a profit.

Of course, all businesses want to grow their revenues and profits over time.

However, this need must not come at the expense of affordability and long-term market value.

Instead, focus on creating products that have tangible benefits for your audience.

This means considering the entire product lifecycle, from sourcing materials responsibly to minimizing environmental impact during production and distribution.

Researching the Competition

Never underestimate the potential for competition, even in underserved markets.

Research existing solutions and analyze their strengths and weaknesses.

Consider their features, pricing, and marketing strategies.

This type of research can help you differentiate your products and better serve the market.

For example, you might discover that preexisting solutions are too expensive or difficult to use.

Take this information and refine your product strategy to better highlight your unique value proposition.

Making Room for Feedback and Iteration

Building a successful product is an iterative process, especially when serving an underserved market.

Don’t assume you have all the answers from the start.

Be responsive to feedback and willing to adapt your product based on user input.

This might involve making changes to the user interface, adding new features, or even rethinking your pricing strategy. 

Either way, you should always view feedback as an opportunity to improve your product and better serve your target audience.

By listening to your users and incorporating their feedback, you can ensure your product meets their needs and delivers real value over time.

Start Capitalizing On Your Target Market

Serving an underserved market can be a great opportunity for your business to see more sustainable growth.

By understanding the specific needs and challenges of these niche customer segments, prioritizing your product’s accessibility and affordability, and building trust through authentic brand engagements, you can unlock the full potential of an underserved market and start seeing profitable results from your efforts.