Warning: This May Cause You To Start Advertising Differently.

Here is a question, is your brand a market leader or a market challenger?

Your answer can determine your advertising strategy.

If you are a market leader you want to focus on growing the market.

That’s because as the market grows if you are the category leader you will usually get the windfall of any new customers participating in the market.

A brilliant example of this was salesforce who founded the SaaS industry.

At the time everyone was hosting software in on-premise data centres.

The main focus for sales force was educating the market about this new ‘no software’ idea. Here’s a link to an early 2001 PR piece that shows just what they were doing at the time.

Today when anyone thinks of SaaS companies salesforce is usually at the top of the list.

Which as the SaaS market continues to grow benefits them immensely.

On the other hand, if you are a market challenger you want to focus on disrupting the leader and taking market share.

That’s because you are after market share.

Let’s take the UK’s prized grocery market. The world-class operations we experience today have been thanks to companies like Tesco and Sainsbury’s paving the way for well over a century.

In 1990 and 1994 Aldi & Lidl burst on into the scene. They knew the playbook wasn’t to grow the market, it was to grow market share and they have been playing this winning strategy ever since.

With clever adverts like these that have been running for years, they are demonstrating to customers that the only difference between buying from the established players and them is the price.

It has worked wonders for them which has resulted in carving out a huge chunk of market share from the leaders.

This is a simple insight but one that can be profound when applied with a smart creative strategy behind it.

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