A Maximum Density Market (MDM) is a subsector of a category that has unusually high concentrations of demand in a small arena on a per capita basis. Demand density is extremely important as it provides a shortcut to scalability with far less investment than to achieve it on a mass market basis. The density of the market makes word of mouth exponentially faster and more powerful, so less marketing (if any) dollars are needed.
Consider Tinybeans, a fast-growing private social media network with over 3 million users. It’s a photo and video sharing site focused on newborns and the many delightful milestones they achieve over the next months. Unlike Facebook, where everyone can see your photos and videos, Tinybeans is private and accessible by invitation only to close friends and family, so there is a tremendous amount of trust which encourages more sharing. This newborn MDM is extremely attractive to marketers whose products are tied to this life event, such as life insurance, a $700 billion dollar industry that is normally unpleasant to talk about.
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