Tag Archives: Market Share

How Do You Reach High-end Users? Three Thoughts

Situation: A company has developed a disrupting technology that will allow OEMs to produce high-end circuits at a fraction of their current cost. A non-exclusive OEM partner is using this technology but doesn’t have a channel to high-end users, and the company is too small to reach these customers themselves.  How do you reach high-end users?

Advice from the CEOs:

  • Your dilemma is having a disrupting technology in a market with a strong division between OEMs servicing the low/medium-end market and those servicing the high-end market.
    • Your technology collapses the division between the low/medium and the high-end markets and OEMs and proposes a full-scale technical shift.
    • This shift disrupts the current business models of either group of OEMs, as well as their technology development plans. This is why you are finding resistance.
  • Therefore, you need a channel partner that is either:
    • A low/medium-end OEM who is just as much a disrupter as you are – highly promising but not yet well-established – and who is capability of developing a high-end sales and marketing effort; or
    • A high-end OEM that knows the market but is collapsing under their current strategy and needs an entirely different solution to revive their prospects.
  • Your near-term task is to simply gain market capability – both manufacturing and marketing/sales – and to use this capability to gain early market acceptance.
    • Your investors want to see early “Blue Chip” partners, but given market realities, this may not be the wisest strategy.
    • If, over the next 12 months, you can begin to impact the market shares of the high-end OEMs, this is the surest way to gain their attention. Once you start to gain share, a likely outcome is that one of the high-end OEMs will buy you to lock up your IP.
    • Another company recently used a similar strategy entering a new market by collaborating with a high-visibility partner.
      • In one year, they took 30% market share from the market leader.
      • The next year the market leader bought them because “it was less expensive to buy you than to spend the marketing dollars that we would have had to spend to compete against you.”

 

 

What are the Strategic Components of a Marketing Plan?

Interview with Sanjay Sathe, President & CEO, RiseSmart.com

Situation: RiseSmart’s top opportunities are to increase visibility and gain market share. What are the most important strategic components of an effective marketing program?

Advice:

  • The best marketing plans don’t start with your company, product or service, They start with a focus on your customers, and the benefits you can deliver to them.
  • That means your first step should be to identify who your customers are.
    • This can be challenging in B2B businesses. For example, with RiseSmart’s outplacement solution, Transition Concierge, we have several possible customers: the HR department at the company seeking outplacement services; the CFO at these companies; the HR department at companies seeking good candidates; and the individuals who are going through outplacement and seeking new positions.
    • Each of these audiences has different objectives, priorities and approaches. To succeed, we need to connect to each of them where they are.
  • After you have identified your target customers, the next step is to develop messaging and message delivery systems that capture and maintain their attention.
    • Your messaging must express a differentiation that is easy to grasp – something that clearly sets you apart from your competition.  In technology marketing, Apple’s 1984 Super Bowl commercial, with its man-versus-machine contrast, is one of the most famous examples of this.
    • Your campaign must consistently touch your potential customer base. Research suggests that this requires a minimum of 4-5 touches to effectively gain customer attention and communicate your message.
    • Accompanying the messaging and the increased visibility that you seek, you must have an effective way to respond promptly and directly to customer interest or inquiries. Rapid and responsive follow-up are critical to success.

You can contact Sanjay Sathe at ssathe@risesmart.com

Key Words: Market Share, Visibility, Customer, Message, Differentiation, Consistency, Touches, Follow-up