Markets and the dynamics of the competition

Today the commercialization is not just as he was in `60s or `70s, because there are enough products to satisfy the needs with the client. In fact the clients are “hyperactive-satisfied”! The companies have divided the market in segments until it has gotten to be almost too small to maintain beneficial.

The distribution now is to a large extent in the hands of giant corporations such as Wal-Mart and Costco. There are more trade names and few producers, they have used excessive respect to the products “life”, and is cheaper to replace than to repair - everything more far complicando the process.

The commercialization has always begun with the identification of the needs of its client, but many companies now are concentrating in the product. They concentrate in what category enters, and then what subcategory (for example then pudding and what flavors). Concentrating in the product, the then companies concentrate in whom it will use the product, and those considered “not to use” are excluded from the picture. In doing this, you finish giving to his competitor a target market.

You could have captured 75% of his “market of the user” because you have a USP (unique selling position) that is to say; more flavors, more advisable packaging, longer life utility, etc. But why cannot YOU also take the care from the other 25% instead of your competitor?

In order to do that, he requires a new way to see well-known like “lateral commercialization”. To stop thinking of how you can maintain 75% love with his product (vertical commercialization), they think of the drawing about 25% of the market that was not its client. This is done by the innovating thought. This can be seen like more far “dividing” the market in segments, but at the same time it is making it greater.

we say soap to him of the sale. You have captured 75% of his market due to a certain development formulary that suds with less product does more. 25% that its competition is trying to capture would happen rather less for the soap, that less. Its method also to capture that 25% is to begin to think the “innovation” and nondiverse product.

The lateral commercialization works within the original product category and of complements it, does not compete with her. You could raise with a soap with more whitening, less foam, without perfume, with more foam. You can innovate by size - selling in great packages of the economy, selling in individual packages, and does this without evolutionary the formula of the product. This type of commercialization works better for the mature markets without growth (after all, they can what new applications you raise with for the soap). Also it can create markets of the scratch, it requires majors resources, and it can redefine his center of the mission and the business of company.

This innovating method of commercialization does not create “new” categories or the markets, it always happens “inside” of the category where the idea originated. If you have done everything to the right, you have stored 25% of the clients who could have far and she did not require many indirect expenses - you still are producing the soap!