But many businesses have significant opportunity in the markets they already serve. The challenge may not be finding somewhere new to compete. It may be competing more effectively where the business already has credibility, relationships and capability.
Start with the customer
Market position is ultimately determined by customers. A useful review therefore begins by understanding:
- why customers buy
- why they stay
- why they leave
- what they value most
- where competitors perform better
- where the business is difficult to deal with
- what makes the offer distinctive
Those answers can be uncomfortable. They can also be valuable. Businesses often invest heavily in things customers barely notice while underinvesting in things customers genuinely value.
Look beyond the brand
Market position is broader than marketing. It is shaped by:
- proposition
- pricing
- service
- sales execution
- customer relationships
- channels
- capability
- delivery
- reputation
A strong brand cannot compensate indefinitely for poor delivery. Likewise, a highly capable business can underperform commercially if customers do not understand why it is different. The whole commercial system matters.
Strengthen the areas that create advantage
The aim is not to improve everything equally. It is to identify where stronger performance could materially improve the business’s position. That may involve:
- clearer differentiation
- stronger account management
- better customer segmentation
- improved sales discipline
- more effective marketing
- channel development
- changes to proposition or pricing
The right response depends on what is limiting performance.
Turn strategy into commercial execution
The Priory case study Turning strategy into commercial execution involved a group of industrial businesses with clear commercial opportunities but a need for stronger leadership capability to deliver them. The work brought together sales, marketing and systems in a coordinated commercial program. That is an important principle.
Commercial strategy only creates value when the organisation can execute it.
Focus effort where it can create a return
Sales and marketing resources are finite. The business therefore needs choices. Which customers deserve more attention? Which sectors fit the offer best? Which opportunities are likely to produce acceptable margin? Which channels are worth developing? Which activity should stop? Those decisions improve focus.
Strength does not always mean scale
A stronger market position does not necessarily mean becoming the largest competitor. It may mean being clearer, more valuable or more defensible in a specific part of the market. That can create:
- stronger margins
- better customer retention
- more efficient acquisition
- increased referral
- greater pricing confidence
The best position is one the organisation can sustain.