Today I am going to share an important topic for Professional Knowledge Marketing section. In this series, I will share all the topics related to Marketing management section. Must download free question bank for Marketing here.
A business entity said to be 'Market Leader' when it earns high profits with greater market shares.
Check updated IBPS SO Marketing Syllabus here
Pre-requisite steps to become Market leader :-
- Market Research
- Innovation (techniques to present the old fashioned/outdated products in new innovative manners).
- Put brand loyalty among customers
Market Leadership and Highly Competitive market
What will happen if there is a highly competitive market by any other business entity?
Nothing to worry, it is a big opportunity for startups because it is not necessary that customers are satisfied from them! Customers may desire for another options. Rising business entities can identify this opportunity by serving customer in a better and efficient way. We can take the example of 'Micromax' mobiles, even in the cut throat competition it became market leader not only in India but also in many other countries. Micromax established itself as a global brand. Now Micromax is termed as one of the most preferred mobile brand because of it's top-notch features at reasonable prices which satisfies the customers hence it became successful brand.
Nothing to worry, it is a big opportunity for startups because it is not necessary that customers are satisfied from them! Customers may desire for another options. Rising business entities can identify this opportunity by serving customer in a better and efficient way. We can take the example of 'Micromax' mobiles, even in the cut throat competition it became market leader not only in India but also in many other countries. Micromax established itself as a global brand. Now Micromax is termed as one of the most preferred mobile brand because of it's top-notch features at reasonable prices which satisfies the customers hence it became successful brand.
Key characteristics of a 'Good Market Leader'
"Good Market Leader" word might be confusing. A Good Market Leader, deserves it's positions and it's difficult to shake it's market share because they a satisfied and loyal customer base.
The important characteristics of a 'Good Market Leader' are discussed as under:
The important characteristics of a 'Good Market Leader' are discussed as under:
- Goodwill (maintain your goodwill)
- Competitors (always be touch with the strategies of your competitors)
- Customer Loyalty (enhance customer loyalty towards your products)
- Price (must be reasonable)
- Profits (without profits no business can exist)
- Promotion Strategies (aware the whole market about your products)
Steps To Become A Market Leader
1. Solve a problem
If you want to become the leader of the market then you have to bring an innovative product that solves a problem. Initially, Gmail was made for chatting and sharing the data but now everyone uses Whats App or Facebook for chatting or sharing data than Gmail. Gmail provided a secure, stable and reliable way to communicate via internet.
2. Does Not Mattes What Competition doing
Be different, it is not necessary to take part in blind sheep race of society. A good market leader always focus on what he wants not what is trending in competition. e.g. Lamborghini was initially dealing with manufacturing of Tractors and when he entered in business of manufacturing of Luxurious Cars there was already a great competition of Ferrari, Mr Cedez, Jaguar etc but besides this Lamborghini established its brand and this brand is exist till today.
3. Speed
A good market leader never wait for the right time and perfection in the products, they launch products for a smaller market. They always keep in mind while launching the product that a product will never be a perfect. Perfection can be achieved only when you commit mistakes. Always listen to customers feedback and always consider their tastes & preferences for perfection in your product. If majority of the customers are satisfied that means your product is perfect.
4. Satisfaction of Customers
Customers satisfaction is sole motto is the main objective of business. In the era of social media, One satisfied customer can influence others decision to buy your products that can helps you in building a brand loyalty. e.g. Google and Apple. Before the establishment of Google and Apple there were many competitors who were already in existence but they provided more user friendly platforms and satisfy their users resultant they got huge success.
5. Invest in Marketing Activities
Marketing activities are necessary to interact with the customers and to build brand awareness. Now a days, social media is also a big tool for marketing activities.
A company has two ways to achieve the competitive edge:
Competitive Strategy
To beat the competitors in highly competitive market for the long period, what an organization adopt, a long term action plan that is known as 'Competitive Strategy'.A company has two ways to achieve the competitive edge:
- Provide similar products at lower prices
- Provide higher quality products at high prices
Cost Leadership Strategy:
It is a strategy in which a company produces similar quality of products at lower cost. In cost leadership strategy, company has two types of options:- First, company can charge that price which is already prevailing in the industry and make profits.
- Second, capture the market share by decreasing price of products. (E.g. Micromax Mobiles are providing same features with lower cost and this is the only reason that these mobiles are now in the reach of every class of Indian society.
Differentiation Strategy:
In this strategy, a company produces its products with different features, designs, specifications and attributes etc.
E.g. When "Google" came into existence, there were so many search engines (like Bing, Yahoo etc.) already in competition but "Google" provides better search quality than any other search engines and it made Google famous and preferable than any other search engine among whole world.
Focus Strategy:
In the focus strategy, company focuses on particular small segments of a particular big market in order to achieve leadership position in that particular segment either via cost leadership or differentiation strategy.
It has two elements:
Focus Strategy (Cost Leadership) - Arvind Mills is fit for example to describe this point because Arvind Mills is a market leader of Jeans fabric and many brands like Lee, Levis, Wrangler, US Polo etc gets raw materials for Jeans from Arvind Mills.
Focus Strategy (Differentiation) - We can take the example of iPhone to understand this point. They make luxury phone at a higher price point. Their user interface is different from others. Their customers are ready to pay for luxurious features.
