Confluence Media’s Niche Market Discovery Process

Confluence Media’s is in the prototype development phase of a marketing intelligence platform branded as the Litmus Business Network (LBN). The LBN is a smart system which enables an evolutionary process to gain a deep understanding of people by researching facts and social science rules derived from history, sociology, and anthropology, all linked to changes in individuals’ psychology. The LBN is an iterative system that narrows possible markets identified by a problem to highly probable market targets characterized by changes in lifestyle, and ranked by a given product or service.

 

Phase 1

We focus on the cause(s) of lifestyle changes and therefore psychological shifts from a macro viewpoint.  We look at timelines over multiple generations for a given geographic area caused by historical events (in particular innovations in technology). For example, modern logistics vehicles (e.g., steam ships, trains, gas powered trucks) and management; in-home refrigeration (e.g., refrigeration distribution and local electric grid); and food science (e.g., preservation and additives) have been introduced to given geographical areas differently at different times leading to macro-state changes attributed to the causes of obesity. The goal is to identify when lifestyles, followed by psychological influences, have emerged over time establishing “possible” market segments.

Phase 2

Next we filter possible markets into “most probable” for a given product/service based on its behavioral characteristics and modeled using social studies resources such as area studies. For example, in the case of obesity, countries with slow technology adoption rates have typically experienced gradual increases in obesity, whereas countries with rapidly adopted technology innovations have seen massive growth rates in obesity. Behavioral models that analyze propensity to change can be applied to filter and narrow possible markets based on technology adoption and rates of state changes. The goal is to segment demographic groups that have changed the fastest as they have a higher probability to change again, which is a highly attractive buyer behavior.

Phase 3

We then filter the most probable niche segment into market persona models. Persona models characterize markets by demographic, lifestyle and behavioral attributes. Persona modeling is the point from which we start to gain perspectives of the market from the inside out vs. the outside in. We employ a bottoms-up approach by communicating directly with the market using social media communication methods and techniques to identify accepted communication modes, methods, and preferences within like peer groups.  We follow a cyclical process working to attain an accurate voice of the customer, which sets the stage for product engagement through social indicator programs.

Phase 4

Lastly, we work with a client’s product/service to further refine secondary predictions via social indicator program. Based on 5 years of experience in social media research and marketing, Confluence Media has discovered that the most effective primary marketing research for products and services comes from representatives in the market. Social indicator programs identify and targets market archetypes, the leaders and representatives in the market that members within their social network follow. Our engagement methods create new points of entry and sales opportunities for customers.