Choosing the right marketing category for your business

In the noisy world of business and marketing, standing out can feel like an uphill battle. One of the most powerful and yet often overlooked decisions you can make is choosing the right marketing category for your business. Get this right, and you’ll sharpen your marketing, build stronger connections with your audience, and set the stage for growth. Get it wrong, and you risk blending in with the competition.

Why your marketing category matters

Choosing the right marketing category is a strategy that can make or break your business. The category you define for your brand shapes everything, from daily decisions to long-term strategy. When done correctly, it helps you build brand recognition and trust, making it easier for customers to choose you over your competitors.

When we think of iconic brands, a few stand out because they didn’t just enter an existing market, they created their own category. Take Tesla, for example. Instead of simply entering the car market, they pioneered the electric vehicle category, positioning themselves as the leader in an entirely new space. Then there’s Red Bull, which didn’t compete directly with Coca-Cola, but instead carved out the energy drink category, becoming the top choice for a whole new consumer need. Even Pantone is a perfect example of category leadership. Globally recognized as the authority in color matching, Pantone revolutionized industries like design, printing, and fashion with their Pantone Matching System (PMS), making it the standard for consistent color reproduction.

By defining their own category, these brands didn’t just stand out, they took control, dominated their space, and created lasting legacies. It’s a powerful reminder that category creation can be one of the smartest strategies for business success.

This video of the Wall Street Journal is a good example of how HelloFresh became the category leader in their space “meal kit companies”. And how “Methodology” used the earn-share strategy and targeted a niche audience, health-conscious, high-end consumers, and positions itself directly against HelloFresh by emphasizing ultra-premium, chef-designed meals.

If you’re looking to grow your brand, ask yourself: How can I carve out a unique category that allows me to lead? It might be the game-changer you need.

How to pick the right marketing category

A common mistake businesses make is choosing a category that’s either too broad or too crowded. When you do that, you end up fighting a never-ending battle for price and attention. But defining your category doesn’t have to be difficult! To make it easier, consider the market landscape and the Five C’s:

1. Understand the market landscape

Before you think of picking a marketing category, you first need to understand the market and where your business fits. This is key to setting yourself up for success. Ask yourself:

• Who are your competitors? Analise what your competitors are doing. Are they targeting a broad audience or carving out a specific niche? What gaps can you spot in the market that they might not be addressing?

• What are the industry trends? Stay ahead of the curve by paying attention to emerging trends, technological shifts, and evolving consumer behavior. Are there growing opportunities you can tap into, or is there an existing category you can redefine?

• Who is your target audience? Your category should be a perfect match for your ideal customer. What problems are they facing? What needs are not met? Understanding your customer allows you to create a category that really connects with them.

2. Identify the problem you’re solving (Customer Benefits)

The heart of any successful category is the problem it solves. When you clearly define the problem, you make it easier to create a category around your solution. Here’s how to approach it:

• Focus on the pain points: What specific challenges are your customers struggling with? The more unique and clear-cut the problem, the easier it will be to create a niche that solves it.

• Consider unmet needs: Often, the most successful businesses address needs that others have missed. Look for gaps in the market where customers are undeserved or where current solutions don’t quite cut it.

• Look for innovation opportunities: Innovation doesn’t always mean inventing something brand new, it can mean delivering existing solutions in a more efficient or user-friendly way. What’s missing in the current market? How can you make a better version of what’s already out there?

3. Narrow down the scope, don’t go too broad (Competitors)

A common pitfall is choosing a category that’s too broad or overly saturated. The danger here is getting lost in the crowd. Here’s how to avoid that:

• Avoid over-saturation: If a category is crowded with competitors, it’s easy to get lost in the noise. Look for spaces with less competition, where your unique offering can stand out.

• Embrace a niche: Instead of offering a general service, focus on a niche like SaaS startups or eco-conscious brands. When you specialize, you become the go-to brand for that audience. When you specialize, you become the go-to brand for that audience.

4. Ask the right strategic questions (Context)

Choosing the right category is about understanding the environment you’re entering and how your brand will be perceived. Ask yourself:

• How do I want to be perceived? Your chosen category will shape how customers view your brand. Do you want to be seen as a leader, innovator, or disruptor? Make sure the category aligns with the image you want to project.

• Who am I competing against, and do I want to? Some categories are highly competitive, while others are still developing. Do you want to go head-to-head with the giants, or would you prefer to carve out a niche where you can lead?

5. Align with your company’s strengths (Capabilities)

Your business needs to be able to effectively compete and thrive within your chosen category. Here are key questions to ask about your company’s strengths:

• What resources do I have? Ensure that your business has the technology, expertise, and capacity needed to succeed in the chosen category.

• What’s your business model? Some categories require substantial investment and high-touch service, while others can be run more efficiently. Ensure your model aligns with the category.

• Can you scale within this category? Consider long-term growth potential. Does this category allow you to expand, or will you quickly hit a ceiling?

6. Consider Your Distribution Channels (Channels)

The way you distribute your product or service is also important for success in your category. Ask yourself:

• How will my product reach customers? Your distribution strategy will depend on your category. Will you sell directly to consumers through e-commerce? Will you rely on brick-and-mortar stores, or perhaps leverage a network of partners or wholesalers?

• What channels align with my category? Some categories may be best suited for online platforms, while others may require a strong presence in physical locations or via exclusive partnerships. Choose the channels that best match how your target customers want to engage with your product.

• How does my distribution support my category? Think about whether your distribution channels can help reinforce your positioning. If you’re a premium brand, does your distribution reflect that, or are you spreading your product too thin?

So, what category are you playing in?

Your category is your chance to tell the world who you are and why you matter. Choose wisely, market boldly, and watch your business rise above the competition.

What category are you playing in? Are you defining it, or are you letting it define you?