In your business it is very important that you make a few decisions that will dramatically effect your marketing, positioning,
Will Your Business Choose the Top 10%
income and business success. One of these very important decisions is deciding what tier in you given market will you focus on. In your chosen industry and market you must decide whether you will devote time and energy in being in the top, near the bottom or with majority in the middle.
This simple question has three profound implications. I will address three areas in which the answer to this question will be very important to your business.
Your Business’s Skills – As a entrepreneur or business owner, is the goal of your business to be in the top ten percent of your market locally, regionally or nationally. I’m sure that as you look at any field, there will be those that you would rank in the top 10%, conversely there are those that seem to be consistently ranking in the bottom 20% of their chosen market. Do you think the ones on top are there be design or are they there on purpose?
Chances are good that they are there by design. For your business have you decided to the be the best in your industry, or are you shooting for the middle? If you shot for the middle you will will have extreme competition as most do not feel that can be the best and often attempt to blend into the mediocre middle. Fact is, if you focus on the middle, you will surely end up in the bottom 10% as those going for the top 10% constantly pass you by.
Your Chosen Customers – The second area that this top, bottom, or middle choice must be considered is at the time for customers selection. Will you target your business at the top prospects/clients, at the bottom or at the middle consumers of the market. Common opinion is to go at the middle because it is the biggest and therefore, the easiest to penetrate and gain market share. But are you willing to sacrifice better margins for easier market share?
Interestingly enough many people will chose the bottom 20%, hoping that being the best among the less is a good idea and make it up in volume, because everyone loves a deal. The problem is customers near the bottom are not usually loyal and will go to the even lower companies. Rarely is going for the lowest in the market a great long term strategy.
Your Prices – In whatever market you play in, there are those that will be in the top 10%, middle 70% and lower 20% in their pricing structure. I will not focus much on the challenges that must be faced if you opt for the bottom 20%, neither will I dwell in the increase in value and differentiation you must give to command the prices for the top 10%, but what I will say is that whatever arena you chose you will have to make accommodations to satisfy the needs and expectations of that market.
The interesting fact about running your own business is that you decide. Choose wisely. This business strategy question will effect your business’ marketing, positioning and longevity. What is your market strategy are you heading for the top 10% of will you choose the middle if the field? Let me know your choice in the comments below.