In the world of cut-throat competition, it has now become imperative for companies to focus on creating territories for themselves. Most of the firms are just busy analyzing sales figures and revenues while ignoring the segment on analyzing territories- Let’s find out what it exactly implies.
Territory in business domain implies creating unchallenged market share- a segment of the market pie where your product is considered not only the market leader but also virtually operates in a monopoly. Sound confused? Well let me give a simple example : Most home pc buyers in India will always prefer Windows OS in comparison to other OS. The reasons can be many, but it creates a territory of Microsoft OS in India.
While creating territory might sound very similar to increasing brand loyalty, in real it is quite different. Brand loyalty implies you prefer buying a product because you feel it is the best product available in the market both in terms of quality and price that matches your requirements, but you might switch to another product if it provides you greater value in terms of your perception. Creating territory is actually the next stage of brand loyalty where you prefer buying it from one particular vendor only regardless of the fact that someone else is offering a similar or slightly better product. It doesn’t happen overnight but consistently delivering quality and improving based on the feedbacks of your customers does convert a major chunk of your loyal customers to territory- for them you are the only choice !
Let us analyze how it normally looks in terms of territory for 3 different players in the market:
If we observe closely we can find that the main distinction between the three players lies in the area of the territory that the market leader has created in comparison to the average player and newbie. Also another thing to note is the fact that the market leader has a presence in almost all segments of the market( as marked by the little area of the red portion in its case).
If we observe closely we can find that the main distinction between the three players lies in the area of the territory that the market leader has created in comparison to the average player and newbie. Also another thing to note is the fact that the market leader has a presence in almost all segments of the market( as marked by the little area of the red portion in its case).
I would like to point out the case of DPR Construction, Inc., – a construction firm based in Redwood city, California and is a contractor of choice for many of America’s technology darlings including Pixar Animation Studio. Doug Woods, one of the co-founders of DPR Construction always believes and says,”We must be different from and progressive than all other construction companies”. For this purpose he does emphasize the value of creating territories – How does he manage to do it? When DPR takes up a project a common team of consisting of members from both DPR and the client’s office is made: The client has a greater say in the activities and both DPR and the client are more aware of each others requirements. The result: a long term relation with the client is guaranteed thereby creating territory. Moreover, DPR asks its clients to rate them in comparison to the best experience they have ever had with any other construction firm- another great way to continuously improve.
If any firm works effectively towards building territories, it can definitely build a strong hold over the market. Question is: Are you doing it ?
You might like reading:
Let the rainbow shine… this ‘Pride’ month
This pride month let us take a moment to make a promise to give everyone out there equal respect they deserve. All are one and pride for all should be our motto. Give away the stereotypical biases and make a promise to take an initiative for the rights of the LGBTQI+. It has been seen that the community faces major […]
Emerging trends in Human Capital Consulting
Human capital can be defined as the combined attributes of human beings which collectively form as a capital resource and used to produce value mostly which has economic benefits .These attributes may include the combined pool of knowledge , creativity, habits , personality traits etc. Human capital can be considered as one of the most important resource for any organization […]
