Category Creation vs. Market Segmentation
I‘m a big fan of the category creation/ king concept and as well as from DE.
How does the market segmentation work on the other hand when on the other hand I want to identify and create a new category (what is a specific segment or niche)?
is there a differentiation at all? What are the best way to identify potential categories?
Bastian,
Very interesting question. I had to go look up what you were talking about and found this blog post which I assume is what you mean about “category creation/king concept” – https://blog.chartmogul.com/what-it-takes-category-king/. To me, this and market segmentation are two different things. I know Hubspot and Drift for instance very well and the first thing they did was figure out what problem they were going to solve and for whom. Once they had great clarity on this, then they worked to differentiate themselves from other and defined categories and words that they would essentially own. This is after you have done the market segmentation and know who your customer is and then you focus on positioning it from a value proposition standpoint (Step 8) to differentiate it from all others potential competitors. Here clever choosing of words (company names, taglines, category definitions all involved carefully chosen words that should reinforce each other) can make a big difference. You should google any words you choose and see if you can own them from an SEO standpoint (like Hubspot did with “inbound marketing”) and then go all in. Repeat it over and over again and make sure you own the SEO.
But to be clear, all of this must be built off a real customer opportunity for value creation first. It is all about benefits and not technology in the end.
Hope this helps and thanks for the questions. Other feel free to add as well.
Thx Bill!
I‘ve found a company in my network who did this step perfectly.
http://www.dixa.com
From customer service (B2B Software) to customer friendship platform. I love it!
Hi Billl what a great answer for a question i was having unanswer for so much time
Hi Billl what a great answer for a question i was having unanswer for so much time