01 Dec Why We Should Focus On Dominating The Market Instead Of Boosting Sales?
It is clear that marketers want to dominate the market to get maximum results. They do this by using advertising and other marketing tools. This may sound like an obvious thing, but in reality, most businesses in the market are unable to dominate. In fact some businesspeople don’t consider market domination as an important thing and they simply want to boost sales and revenue.
There are many marketing tool we can use to gain domination in the market. Specifically for local businesses, location can be essential; because some products and services are more location-oriented than others. Climbing gears shops near recreational mountainous regions fall into this category.
We may also see large companies, such as Burger Kings and McDonalds sell their food products at higher prices if they are located in high-visibility locations. In many cases, products would be sold at lower prices in less crowded streets and this could correlate with the higher costs associated with the location.
In general, the success of a business could be determined by the fact that their shops are located in high visibility locations. The use of highly efficient sales representatives is also important. In this case, it won’t be possible to dominate the local market if we have 2 salespeople, while competitors often have more than 10. It won’t be possible to sell more products if we have a few sellers in place. In fact, we would never see large companies that rely on small sales force.
Many companies also rely on word-of-mouth advertising and this could be one of the cheapest and the most effective. Some companies could consider that they are dominant advertiser in one medium, but not on others. Again, fast food industry is a good example to illustrate the market domination principle.
While they often utilize all the available marketing mediums, they focus on dominating the market, instead of boosting sales. In this case, they often use TV as preferred advertising medium. We could see that smaller competitors tend to advertise much less than market dominators. It means, we should be able to see a correlation. An attempt to dominate the market could also take place through radio advertising.
In a city or town, if we dominate most stations, it is more likely for us to dominate the local consumers. Generally speaking, if we run dozens of spots each day on most radio stations in tows, we are better of obtaining more consumers, than competitors with fewer spots. In general, not only we could have larger market share, we will also generate more sales by running more spots each day.
We have seen small businesses that are able to expand to dozens of new locations in just a decade. This is a simple consequence of market domination, because businesses need to expand themselves to dominate the market. Certainly, we could use multiple forms of advertising to dominate the market.
There are many major mediums that can be used in the metropolitan areas, such as Yellow Pages, newspaper, billboards, TV and radio. For quite an obvious reason, we should choose methods that can provide the most gain, such as focusing on newspapers and stations with the most audience.