Immature Market?By Tom Dougherty
No Such Thing As An Immature Market
A case for the bullshit of an immature market
In any case, a brand will not survive unless it steals share.
When you evaluate your category, do not look at it as a particular process or technology. Rather, look at it as the satisfaction of a customer’s need or want.
Suddenly, even your most immature market begins to look remarkably crowded and quite mature.
Evaluating your offering in terms of a perceived need or want is an important understanding to foster — that is if you want to steal market share.
It forces you to see your product and service from the outside-in perspective of the customers you are trying to influence.
Immediately, rather than a new offering, your new category looks a great deal like a marketing improvement that will help you target the competitive set. Failure to understand this is failure to know the enemy.
Legends in our own minds
Purveyors of new product offers are not the only guilty parties when it comes to self-deceit.
All marketers worth their salt are in love with their offers, but somehow, those riding the exhilarating crest of innovation and newness are understandably more prone to this error. Know this, and you will own the advantage.
Certainly, it is important to tout the innovative advantages, but do not get lost in the minutiae of the process that excites the engineers and the lab-coated folks in R&D.
They love the processes.
Your target audience cares only for the outcome and purposes.
Even the greatest of outcomes is no substitute for a great brand promise. Brand equity not only promises a specific outcome but also promises to reinforce the self-description of the target audience while they actively use or purchase the brand.
It speaks directly to your target’s sense of self. (Read how Stealing Share solves this problem here)
Defining your competition
We at Stealing Share think about every means that the customer has of satisfying that need or want when we evaluate a new brand or service, new pharmaceutical, new technology, new financial service, or new consumer product.
FedEx competes with UPS and DHL, for sure, but it also competes with all means of communicating and sharing data at high speed.
The competitive set, therefore, includes texts, faxes, email, telephone, social media posts, and, in an older age carrier pigeons.
When the iPod hit the market, it was in a life-or-death struggle not only with other MP3 players. But, also with every means by which the end-user had to play music — both portable and non-portable.
The competitors in an immature market
Understanding the entire competitive set prepares you to find real opportunities for your brand and not just a temporary fix. No need to even ask about market maturity.
When building the brand story, always remember that your competition’s customers are not simply buying a product or service, they are buying a brand that reinforces a belief in whom they are. As individuals and as a group.
They are reinforcing their sense of self with every purchase and no one, regardless of the power of the offer, will commit emotional suicide by buying a brand that shatters that self-concept.
These emotional attachments to brands are more important than efficacy or performance. Brand loyalty will always protect your brand from always having to be the best or most affordable.
Brand protects Coke from being overtaken by Pepsi even if Pepsi is preferred in blind taste tests. It protects Apple from encroachment by its competitors and it provides advantages to countless other brands every day.
It is the only reason to invest in brand building and runs counter to everything R&D might tell you. Anthropologists better understand brand equity than most marketers and companies. Those that know both disciplines own an outstanding advantage.
Low penetration vs. immature market
However, there are a number of existing products that are certainly satisfying the category need by other means.
To get consumers to change their current behavior, your brand needs them to change both their loyalties and their actions and choose differently.
You are bucking both brand loyalty and force of habit, and such powerful laws of consumer behavior requires an equal force to be applied to institute such a change.
At Stealing Share, we believe these represent both the emotional and cognitive needs of the target you wish to influence. You must engage their intellect and excite their emotions.
You must promise not only a better outcome and process but a better user of the brand as well. In short, you need to invite them into an exclusive club that welcomes them as a member.