To continue where we left out in yesterday’s post – you look for the highest yield within a niche and then focus on that for the long term till you get to dominate that market.
We looked at the examples of how even till today P&G’s Tide detergent powder is about keeping the Clothes whiter than white – even though they have been doing this for my guess is at least 40 years. And they have huge departments whose only focus in life, is to ensure people’s clothes stay white.
So they have segmented the market for washing clothes (usage) – between the ones preferring detergent powders to another who prefer liquid detergents. Then within detergent powders they go to the single target market of washing just white clothes
In case of B2B we look at the different possibilities of usage – so lets take an example of productivity applications. So you have applications via the web in a SAAS model on a monthly small license fee or with on-prem one time perpetual license. You could have within the productivity applications market, sales person productivity also…..so you have CRM companies bundling word processors and spreadsheets into their CRM so that the sales person doesn’t need to move out of the CRM at all.
So these companies are only targeting the sales person – anyone who’s not a sales person and not utilising “their” CRM is not a focus. This way they are ensuring that they are focussing on a very small segment of the market and working to utilise all their energies and funds in trying to dominate that market.
By focussing this way you will be able to play a longer game.
Till next time then.