Catalyzing Revenue

POINT OF VIEW

Market Ownership versus Market Share

 

The one common theme heard from the largest to the smallest company is about the scarcity of marketing resources. A market ownership approach is designed to focus scarce resources on the quickest pathway to build market credibility and the creation of real customer and ultimately, market value. 

Markets available for ownership are those based on un- or under-served customer needs. The company that continuously defines these according to their advantage, and then quickly captures control of the market network that comprises the space, is the one that will continuously achieve higher valuations. Those who identify available market spaces in advance of their competitors will force those companies to play according to their rule book. Isn't it always better to be in control of your own destiny, rather than someone else's?

Market category opportunities become real when there is typically a technology price/performance breakthrough that  –

  • significantly reduces the resource investment required to achieve a business or personal goal (remember resource investments involve more than just money)

    or

  • enables the user to do something that they couldn’t do, or it wasn’t worth their investment of resources to do

The view that defining and developing new categories is more resource intensive is a myth. In fact, this approach to the market is often the more resource-effective as it delays costly and unproductive market share battles. Resources can completely be focused on setting up market control points and co-opting relationships.

The customer need coupled with the technology enablement for fulfilling the need defines the market category opportunity. The customer segments where the need is the most compelling then become the early resources for the development of the market. The company role is to orchestrate the focus, the partnerships, the channels, the solution portfolio, and the sales engine towards completely fulfilling the need as quickly as possible. This early customer advocacy must then be invested to accelerate new customer acquisition and adoption.

To become a market owner –

  1. Identify customer areas where there are gaps in personal and business needs fulfillment.
  2. Competitively assess your ability to cost-effectively fill those gaps with products and services “made” by you, augmented by those you “make happen” through solution partners.
  3. Proactively define and author the category with the most significant solution partners so that its parameters advantage you and disadvantage competitors.
  4. Launch the category first; then the solution; then the solution portfolio evolution; then the distribution channel expansion.
  5. Proactively attract competitors with the economics, while you proactively identify the next market category.