1. Owns 80% share in a market of size 10, or
2. Owns 8% in a market of size 100
The same question I raise in my workshop and almost always the Option 2 wins and for reasons that are not wrong. For that matter, there’s no right or wrong in marketing… it’s all about individual’s judgment and gut.
Contrary to popular belief, I opt for Option 1.
As a marketer, I want to be a dominant player in the marketplace. The fact that I own 80% of the market means:
a. I have a product / service that’s a leader in its category
b. I have made it hard for the competitors
And most important, I am selling at a profit and at my terms. Long story short, I would rather be a fish in a small pond rather than being gobbled up by larger ones in an ocean.
My belief should work well for entrepreneurs and businesspeople with limited resources. You will find more in my 2 business books at prakashbang.com.
