It’s no secret that category building has become a popular positioning and marketing strategy during the past few years.
Companies that lead categories have an envious position. They clearly stand out, are more attractive to customers, are loved by media and analyst influencers, and, at the highest level, have the highest market valuation.
Who raises the most money, gets acquired and reaches the promised land of startups — an IPO?
Let’s look at three reasons why your company should take the plunge into category development and building:
It forces you to aim higher:
The process of defining and building a category helps you get out of your own shadow to take a broader view of the industry, and your vision for it. Because the category is NOT about you and your offering, it requires selfless thinking and putting your industry first. That’s a good thing to do as you think like an industry analyst.
It helps define your company’s North Star:
It’s hard to identify a single cause your company stands for day-in and day-out. A category narrative is stable and not at the mercy of the latest “shiny object” to chase. Embarking on a category building initiative reveals your company’s singular, true vision.
It’s an alignment function:
Having everyone in the company standing behind a single cause — the category — creates a common narrative for the entire company. Think of it, a single elevator pitch! It ensures that every employee stands on common ground and is pursuing the same aspirational goal.
If you’re looking for category building resources to get started, check out my book, “A Practical Guide for Strategic Narrative Marketing.” Or, take this free narrative assessment and I’ll personally send feedback on how to improve your current narrative and get closer to category leadership (no strings attached – I promise!).