In addition to market leader and market challenger, there are another market participants that received less attention even though the actual number of those at most.

Market Follower

If market leaders and challengers compete to become the most sought after consumers, the market follower is not the case. He enjoys his current income with no strong desire to be number one in the eyes of consumers. He have principle that most important he get profit and there no need to seriously hit market. If your company is not the company's most sought after but pretty much have consumers and no interest of as well as a winner, you might fall into the category of market follower

Market Nicher

Market nicher can be said as the company reached a certain market share that other companies neglected. There are many companies like this compared to three other companies. They do specialize.


Market leader, market challeger and market followers typically have a large organizational structure and tend to be rigid. So if there are new opportunities in a region, they need to perform coordination  to their core management in central office. This resulted they moved slowly. Opportunities are then captured by the market nicher because he has a simple management structure so decisions can be made immediately.

The easiest example we observe is an antique car repair shop. Every manufacturer of automotiv must work with a particular repair shop as a service to consumers of their car. They can also make the workshop without the cooperation with other parties. Because of the big name of car manufacturers so very difficult for competitors to grab their market. But there are a niche that they may ignore or they can’t  worked  as antique car repair shop.

Once we define our market segment as it has been written before. Now we begin to define the right target market, or referred to as Targeting. Targeting more specific than segmentation or can be said that targeting is a continuation of segmentation.

We have to understand that basically every product has its own consumers. Create a product for all types of consumers is impossible. Why? Since everyone has different tastes and needs vary.

Simply like this, if our neighbors like motor sport, if we also love motor sport? Not necessarily right? It may be that we prefer a lighter bike such as motor matic. Or worse, we don’t like both. Perhaps we prefer the car.

To successfully determine the right target market, there are two initial steps we have to do, that is;

1. Determine Buyers Groups

First, you specify buyers groups. In determining the purchaser (see previous article about the market segmentation), we do not get caught grouping based solely on demographics alone. We also have to look them in the habit of making a purchase.

For example, we select a buyers group of t-shirt clothing for kids. From here we can still narrow down again, called it a niche market, for example, might be a buyer's market segments football fans shirts for kids?

2. Determining Benefits Key Required By  Buyer We Become Targeted.

After the first point we have set, the next step is to figure out main benefits of the most sought by our earlier target consumers. Still using the example of a buyer's market segment jersey boys are football fans, we have to find out what they most want.

What they most want is a shirt of their favorite football team. So we have to figure out the most favorite football team in the area of our target. Or they want is a shirt of their favorite football team with their child's name on his back. How can the quality and service? In my opinion, a matter of quality and good service is a basic service that should you serve, any existing segment and target shoot.

And remember, both of the above may be obtained if and only if we carry out market research. So we should not speculate without any valid data. The result can be fatal. Please read my article about market research.

See you and always learn to increase sales ...

Market segmentation is a sentence that quite scary and seem complicated for some people who jumped to build a business. In fact, market segmentation is one important element in our efforts to increase sales.

Well, I will explain in simple language and easy to understand what it is market segmentation. Some say market segmentation is a method of how to view market creatively. That is still ambiguous for business beginners, so it's simply a process of market segmentation is to determine the primary target of product or service will we sell.

You are still confused with definition of market segmentation above? Well, one of the effects if you don’t know who is right for market segmentation of your product is what you will do and no matter how great marketing costs already incurred will be useless, even if your product have high quality.

The easiest example of market segmentation is that you are selling a luxury car (product) at a price of $ 100,000 (price) and then you sell to a beggar (targeting & segmentation). Although that luxury car you have crazy discounts up to 75% (promotion),  beggar will not buy. Why? Because he was not need. It's different if you are selling to the luxury car lovers market segmentation, the result will different.

It was also same as when you sell chicken meat to the market segment of people who are vegetarian or you are selling shark fin to the traditional markets are not necessarily the people who love to eat seafood and the deep pockets of consumers come to the place.



The result must be zero, even though prices have you down furiously until well below market prices. This is because the behavior of different markets.

Suppose we want to set up a boutique business. The first question is whether we are going to sell the women's or men? For parents, adults, teenagers or children? Once we decide on one of them, such as women's clothing. Congratulations we have made a meaningful segmentation. This is because the level of a certain age and gender differences is the different markets and we have to choose one of the group is to segment the market.

Then how do I find the right market segment? Market Research!  Once you know who your target market, you will be much easier to do deals and make sales. So, look at your market segmentation is always creative. Determine which market group that you select, design and marketing tactics you, then do the sales. That way you are likely to be larger to increase sales, right?

Before we produce and sell products, we have to do market research. This is very important because we can’t guess or estimate desired products by market. So market research is helping us to give an overview of products that consumers want. Don’t let because we're so confident in the greatness of our products, we forget this market research. As a result we like gambling in selling. Chances are we succeed and fail in selling is 50:50.

Businessman soul is amazing, when he finds a brilliant idea. He desire to make it happen soon. Sometimes forget the enthusiasm of market research. When the product is sold, he will be disappointed because consumer was not interested in buying his product. Market research is helping businesses to minimize such failures. So we are always trying to produce the desired by consumer. Of course to succeed in selling.

Actually, the method of market research for products that consumers want to know quite a lot. There are three popular enough that you can use to succeed in selling, ie questionnaires, focus groups and surveys.

1. Questionnaire.

Questionnaire  methods of marketing research can be done with paper surveys (interviews) or online. In general, the questionnaire is more likely to be answered if there are incentives (ie reward). Reward not necessarily a sum of money or expensive items. We can provide as a merchant our business ie t-shirt, mug or ballpoint present our company logo. So might as well do the branding.

If McDonald incentive marketing research methods are, by the time they wanted to launch the "ice cream cone", after being interviewed, the respondents are given in return a sum of money, given a keepsake gift.

2. Focus Group.

Focus group is a method of marketing research by using a small group of consumers is collected under the direction of a moderator, while the researchers videotaped and recorded their observations on the responses, reactions, and customer comments. Participants are usually paid for their time.

Based on the experience of a business expert, ten respondents with one moderator and three researchers quite effective for this market research methods. But be careful when using this method of marketing research, the answers obtained from respondents are often refractive.

3. Survey.

Survey  shorter than questionnaire, so no need to return. Online survey will receive outstanding response if your method of marketing research is presented in a positive way. Through this website, you can put a few questions (which do not interfere, simple, and easily answered) to obtain comments and suggestions from website visitors, especially shoppers.

This survey could also do with the method of email, phone or sms. But this method over the phone should be avoided as it seemed like spamming. Methods of marketing research using telephone surveys is a terror to people who were eating quietly or nap. Most of them are very disturbed and more unpopular.

Before we create and launch our product, use the above methods of market research. So you do not have product fail in market. Once we get the conclusion of our marketing research, test and measurement on a small scale first. The goal is that you really know that your product will be sold on the market. Final goal , we succeed and increase sales.

See you ... and tell me, your experience about market research that you have done in comment form.

As a newbies entrepreneur, sometimes I think that consumers will like my product or service. My positive thoughts are of course good, but that was not enough. I am too focused on usability of goods and services that I sell both in terms of usability and price I offer. Because of great usefulness and the price is relatively cheap, I think consumers will like my products and services. And I ignore my target consumers who want to go.

Because if I think like that, its market share is too large. That's a problem. Many companies are too confident in their product that ultimately failed to reach the market. Although it has been doing large-scale promotion, but still failed too. Yup ... this is where we need to know the potential market for the product or service that we wish to sell.

All people who love our product or service is not necessarily buy at our place. Markets different with potential market. Everyone will need a motor vehicle, but they choice must be Honda? Not necessarily. Everyone who takes a motor vehicle is the market. As for they who need a Honda motor vehicle is a potential market. So obviously the difference.



If I'm selling is a website design service. All persons or agencies who need a website is the market. So who is the potential market for me? Of course most of the market is willing to spend money to make a website.


In conclusion, market is consumer who is going to need your products or services that we offer, while potential market are those who need our product and also have enough financial condition to buy it. More clearer our potential market, more better we can setting price and increase sales. Certainly this can not be separated from segmentation, targeting and positioning problem.

Honestly, I find it difficult to make an example that is easy to understand about difference between  market and potential market. Can you give another example, in order to more easily understood?

Market Challenger is a company whose product took second place of most demanding consumers. Actually, not always the number two but it could be ranked third or so. In a contest,  there are a winner, runner up and third place. The Winner can we call a market leader. Runner up and third place is called Market Challenger.

In a general sense, market challenger is a company trying to beat the market leaders. If the Market leader in large-scale promotion on television then Market Challenger will also followed his lead. Both will continue to compete. If the market leader off guard, it is possible the market challenger will grab their position.

For the market leader, market challenger is a potential major competitor for them as well as the most feared opponent. If you are a company or person who is most feared by the company so you are a market challenger. But if not making a bit afraid of market leader, possibility your position is market nicher.



An example is the seller burger cart, of course not going to make McDonald's afraid because he's not market challenger. His position is simply a market nicher, who tried to benefit from the trend selling burgers. Although he get big benefit, he would not interfere with McDonald as the Market Leader.

Other stories if the seller burger cart is developing its business, he made some outlets with good management. He placed near MacDonald outlets. If the presence of these new outlets affect McDonald revenue, they position has been included in Market Challenger category.

It's the second of Market Level after market leader, next post i will write about market follower and market nicher. Stay here to learn how to increase sales.

Market leader is a company whose products are most widely consumed by consumers. In a general sense, market leader is a company which controls the largest market share. Those who shake up the market and determining prices. Many of sellers or other companies follow their movements.

Market Leader is company most widely emulated, feared, or even avoided by other companies. If many company imitate you so you are a market leader. Or it could be your movements feared other players. But if you are imitating, you are certainly not market leader moreover you are much afraid to competitor company.

Market leader does not happen if market has one seller only. It means companies or sellers who do monopoly can not be categorized as market leader for example is a company owned by government of a State. Although they dominate market, can not be considered if they are market leaders. The reason is they are afraid rivaled by competitors rather than scaring competitors. Usually they made government policies to limit for competitors space.

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Simply put, if we want to become the market leader, our company have more than a rival company. More in terms of innovation, resources, marketing and sales. Of course it takes creativity to continue  innovate relentlessly become a differentiator with its competitors. Because if we are imitate others company, we can not called Market Leader but can be as Market Challenger or Market Follower.

After identifying  marketing mix and determine strategic location for our sales. It’s time we recognize some kind of market levels. Of course we can increase sales that our goal!