What Is a Market, Really?

The goal of marketing is to find and build relationships with customers, and the role of marketing is the interface between customers and the company that customers need to build financial value.

In most markets, competitors are trying to build relationships with the same customers. Consequently, marketers must be in the business of marketing and positioning a product or service to attract potential customers and make them loyal customers not only to customers but also to the company, competitors, and existing potentials.

Positioning: adapting the product to the market (but what is the market?)

One of the main responsibilities of marketers is to position a product and find a ‘fit’ between the market and the product/service they are selling.

Part of the problem that marketers face when confirming the adequacy of the product/market is inherent in the concept of “market”: a market is not something tangible, it is a social structure (you cannot have a market). As a result, some people in marketing tend to focus on a product or service that they can see and think of as “the market”.

Looking at it this way, the market exists in a restricted category or industry level, letting marketers immediately focus on a vague idea of   a ‘target market’ and directly on characters, types of audiences, SIC codes, verticals, posts, and stories – without ever thinking about what a market really is.

This approach can also lead to the well-known problem of marketing myopia. The classic example of this is the automotive industry and how it was surprised by the appearance of the car.

After marketers narrow their focus to products and services, they also begin to focus on functionality, features, and attributes.

It is normal to think that customers are buying products and thinking about their characteristics and characteristics. People think about these things. But is that why they actually buy something? As Theodore Levitt, the famous management and marketing legend, said: “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!”

In other words, ultimately, people want the benefits of a product or service. And by ‘people’ I am not only referring to individual consumers, but also to companies and business units that also want benefits.

If you are not sure if this is the case, take a look around the room you are in now, look for something you own and enjoy and ask yourself, “Why did I buy this? But why did you want it? Ask yourself repeatedly “why? You will understand Theodore Levitt’s central message.

When marketers focus on features, characteristics, and attributes, they focus their attention internally, on the company and its products, not on customers. While they focus on the benefits, externally they focus their attention on the customers who actually buy.

In fact, you can think of a market as “a group of customers who want or need different types of benefits through products/services that provide those benefits”.

The benefits of focusing on the benefits (what does this mean for marketers?)

There are other reasons to focus on benefits:

  • First, you become obsessed with what customers really want. Our goal is to “be customer-centric” and that is how we do it.
  • Second, don’t add features that customers don’t want and don’t want to pay for.
  • Finally, avoid being overwhelmed by competitors and substitute products.

Think of the taxi industry. Companies like to focus on taxis, areas, and other traditional aspects of the industry. But Uber and Lyft are coming, bringing more benefits to customers. Uber and Lyft didn’t create any new benefits … they just offered benefits that people already wanted.

This does not mean that resources, attributes, and attributes are not important. I’m. It is these aspects of the products that ultimately deliver the benefits that customers want. But marketers must first focus on the benefits for the customer … and then only on the critical aspects of the product that are needed to deliver the benefits.

Often, marketers are asked to draw attention to “vertical marketing”, a business of a certain size, or some other easily identifiable characteristic. You can still get your attention

A unique and defensible position (where do you position yourself in the market?)

If you want to take a unique and defensible position, instead of starting with the company, its products, or a specific industry, start with the people who evaluate the purchase of your product. They live there – at the “market”! To be precise, this is the market.