Market Development Strategy Checklist
A nine-factor scoring system for evaluating beachhead candidates and screening out segments with ...
The Market Development Strategy Checklist is a nine-factor evaluation framework designed to score and rank candidate beachhead segments for crossing the chasm. It transforms what is typically a subjective, opinion-driven debate into a structured, evidence-based decision process. Each candidate segment is scored across all nine factors, but the framework includes a critical screening mechanism: certain factors are designated as showstoppers, meaning a failing score on any one of them eliminates the segment regardless of its scores elsewhere.
The nine factors are: (1) target customer -- can you identify and access a specific economic buyer? (2) compelling reason to buy -- does the customer have an urgent, funded problem? (3) whole product -- can you assemble a complete solution? (4) partners and allies -- can you recruit the complementary players needed? (5) distribution -- do you have a viable channel to reach these customers? (6) pricing -- can you price profitably while matching customer expectations? (7) competition -- is the competitive landscape favorable? (8) positioning -- can you create a credible, differentiated market position? (9) next target customer -- does this beachhead connect to adjacent segments for expansion?
The first three factors -- target customer, compelling reason to buy, and whole product -- are the showstoppers. If any candidate segment scores below the threshold on these three, it is eliminated immediately. The remaining six factors differentiate between viable candidates.
- {"title":"Showstoppers Are Absolute","description":"A segment with no identifiable target customer, no compelling reason to buy, or no feasible whole product cannot succeed regardless of how attractive it looks on other dimensions. These three factors are gates, not gradients."}
- {"title":"All Nine Factors Must Be Addressed","description":"Even after passing the showstopper screen, a segment must score acceptably across all remaining factors. A brilliant target customer with perfect whole product fit but no viable distribution channel is still a poor beachhead choice."}
- {"title":"Relative Scoring Drives Comparative Decisions","description":"The checklist is most valuable when comparing multiple candidates. Absolute scores matter less than relative ranking. The goal is to identify which candidate is strongest overall, not to find a segment that scores perfectly on every factor."}
- List All Candidate Beachhead SegmentsGather the target customer scenarios developed through the Target Customer Characterization process. Each scenario represents a candidate beachhead. You should have at least five to ten candidates to evaluate.Pro tipInclude some counterintuitive candidates -- segments that seem too small or too obscure. These often score surprisingly well because they have less competition and more urgent pain.
- Screen for Showstoppers on Factors 1-3For each candidate, evaluate: (1) Can you specifically identify and access the economic buyer? (2) Is there a compelling, urgent, funded reason to buy? (3) Can you assemble a complete whole product for this segment? Score each on a 1-5 scale. Eliminate any candidate that scores below 3 on any of these three.WarningBe brutally honest in showstopper screening. The temptation is to rate your favorite segment generously. Bring in outside perspectives -- advisors, board members, or friendly customers -- to challenge your self-assessment.
- Score Remaining Factors 4-9For each surviving candidate, score: (4) partners and allies available to complete the whole product, (5) distribution channel viability, (6) pricing that works for both customer and company, (7) competitive landscape favorability, (8) positioning credibility and clarity, (9) connection to adjacent segments for future expansion. Use the same 1-5 scale.Pro tipFactor 9 -- the next target customer -- is frequently undervalued. A beachhead with no expansion path is a dead end. Ensure that conquering the beachhead opens doors to at least two adjacent segments.
- Total Scores and Rank CandidatesSum the scores across all nine factors for each candidate. Rank candidates by total score. Discuss the top three with the leadership team, paying special attention to any factor where the top candidate scores significantly lower than an alternative.Pro tipIf two candidates are within a few points of each other, give preference to the one where your team has the deepest domain expertise or the strongest existing customer relationships.
- Commit and CommunicateSelect the top-ranked candidate as your beachhead. Communicate this decision across the organization as a strategic commitment, not a tentative experiment. Allocate resources, set milestones, and hold the organization accountable to this focus.WarningThe most common failure mode is committing on paper but hedging in practice -- continuing to pursue deals in other segments 'just in case.' This undermines the entire strategy.
Moore demonstrates the checklist by evaluating 3-D printing scenarios. The dental lab scenario scores high on compelling reason to buy (dental labs need custom crowns daily) and whole product (the technology plus dental CAD software is a relatively complete solution), but might score lower on distribution (no established channel to dental labs). The aerospace prototyping scenario scores high on distribution (existing engineering sales channels) but lower on whole product (extensive material science and certification requirements). The systematic comparison reveals which scenario has the best overall profile.
Documentum's pharmaceutical regulatory affairs beachhead scores exceptionally well on the checklist: target customer is highly identifiable (regulatory affairs directors at pharma companies), compelling reason to buy is extreme (FDA compliance), whole product is achievable (document management plus validation), partners exist (systems integrators specializing in pharma), and next target customer is clear (adjacent regulated industries). This near-perfect alignment across all nine factors explains why the crossing succeeded.
Moore developed the checklist because he observed that beachhead selection meetings typically devolved into political battles where the strongest personality or the most senior executive imposed their preference. Without a common evaluation framework, teams could not compare segments objectively and could not articulate why one niche was superior to another.
The checklist was designed to be simple enough to complete in a single team workshop yet rigorous enough to prevent fatal selection errors. The showstopper mechanism reflects Moore's hard-won insight that certain conditions are non-negotiable for chasm crossing -- no amount of excellence in distribution or positioning can compensate for the absence of a compelling reason to buy.