Definition
Defining a new market category rather than competing within an existing one, so the company can be seen as the category's leader by definition.
Why it matters for growth
Category creation avoids direct feature comparisons with entrenched competitors and lets a company set the terms customers use to evaluate the entire space.
Example
Salesforce popularized 'cloud CRM' as a category distinct from installed CRM software, positioning itself as the obvious leader of that new category.
FAQ
- What is Category Creation?
- Defining a new market category rather than competing within an existing one, so the company can be seen as the category's leader by definition.
- Why does Category Creation matter for growth?
- Category creation avoids direct feature comparisons with entrenched competitors and lets a company set the terms customers use to evaluate the entire space.
- What is an example of Category Creation?
- Salesforce popularized 'cloud CRM' as a category distinct from installed CRM software, positioning itself as the obvious leader of that new category.