What is Your Business Market Dominating Position
By: Brett Pittsenbargar
In the United States of America, 99.9% of the whole percentage of business are considered small businesses. Meaning, these companies have fewer than 500 employees. There are almost 30 million small businesses in the US, and together they account for the steady increase in the country’s economy.
Despite the preponderance of businesses in the US, statistics show that almost half of the companies will not even reach their 5th year. These are due to a lot of factors including cash flow problems, increasing debt, ineffective management of operations, legality problems, and many others. However, one of the most pressing problems facing small business owners is market competition. How can you, as a small business owner, grip the market and offer better services or products than the ones already in place? Do you have the ability to stay above the rest? Are you unique enough to snatch the market dominant position?
What is a Market Dominating Position?
For some, to be able to dominate a market is to be successful. This claim is quite logical; in fact, when you dominate a market it means that you have already established the strength of your company – everyone knows your brand and people, from different places, covet your service. According to the internet, Market Dominating Position is “any value-added customer perceived benefit, or a combination of benefits, that differentiates you from your competitors… and does so in a strong enough manner that it makes your business the logical choice in the minds of your prospects and customers…”.
In short, Market Dominating Position is the position that enabled customers to do business with you rather than with the other businesses nearby. It’s what makes you unique, it’s what allowed you to stand above the rest. Understand your business value with this quiz.
What is your Market Dominating Position?
The truth is, it depends on you! Your Market Dominating Position is only a dependent variable in your overall business plan. It will be determined by your target market, your business model, sales pitch, and many other factors. By analyzing these, you will be able to arrive at the most strategic position that will allow you to rake in success.
How now, will you determine your market dominating position? There are a lot of things to consider in planning out the success of your business. But here are some tips that will cast a light on your confusion about positioning yourself in the market.
Strategize during your start-up
In starting your business, you are already laying down the roots of your market dominating position. There are usually two reasons why people enter business:
1) For some of us, we already have services/products in mind that we want to offer and from there, we started building the business;
2) For some others, there is no particular product or service in mind, they want to first test the waters but they are already sure that they want to have a business. So, they conduct different meetings with different people or conduct focus group discussions with different customers to come up with a product or service and then build from there.
If you are among the small business owners who entered the business market for the first reason, you should be able to ask yourself: what will make your product different from the rest of the products already offered in the business market. Or if you are among the small business owners who entered for the second reason, you have to ask yourself, what product can you offer that is not already in the market? Or you can also ask what innovations can you further bring to a product that is already in the market.
Honing your market dominating position should start from the very first step of building your business. With this, you will be able to strategically think about the next steps.
Test the market
A market dominating position is not as easy as 1-2-3. Sometimes what you plan before may not end up being compatible with the realities of sustaining a business. So, you ended up trying different marketing strategies or testing out your products to a group of people that does not belong to your niche market. Have faith! The point is, you have to keep looking for that position where your products will be met with overwhelming enthusiasm. Go out and test the waters. Do not be afraid to fail in a certain market. You just have to try again. If you are already in a crisis get help… don’t wait.
Publicize your pitch
There will never be a business with a market dominating position without the help of good advertising. You have to create slogans and statements that are simple yet, are considered high-impact materials. For this, you have to tap into the emotional psyche of your target market – what will make them want your product even more. A good example for this is the strategy of Domino’s Pizza. You know, Domino’s Pizza sells the same pizza just like all of the other pizza stores in the USA. However, its management created a brilliant pitch. They claim to deliver every pizza right into the customer’s doorsteps in 30 minutes, and if they failed, the pizza is already free. This pitch appealed to customers. In a fast-paced life, time is very important. And Domino’s appealed just right there.
The impact of your pitch will let you know if you hit the right target market. If you are successful, then position yourself in that frontier and improve on your business. It may be your lucky position to claim market dominance.
The point is take the wheel. Do not let the market dominate you. Dominate it instead. You may be faced with different challenges and problems, but you have to keep going. Or else, your small business will end up like the 50% of the small businesses in statistics – gone.
Further reading: Seeking Alpha article: “Creating Business Value To Attract Investors”
To better improve the outcome, finding the correct value of the business metrics are critical. We work with entrepreneurs to achieve remarkable results, whether that’s exponential growth or an exit event. You can get a free business evaluation score with our Value Builder System.