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!

Choosing a strategic location is the last part of marketing mix. Choosing a strategic location as important as other elements of marketing mix. The most important of location is easily accessible by all parties. Whether it's consumers, producers or product and employees It is general because it is in fact a way to sell products each company is different . There is a direct selling, retail and franchise and create a branch up to reach consumers.

Here are general criteria for selecting a strategic location for our business;

Easy to Reach by Consumers

The effects of good promotion, your product will be sought by consumers. They will find it in our place or any place that provides products we sell. Try to imagine, when a consumer who has been educated by our campaignand need our products, but they are difficult to obtain our products, they will feel cheated! Fatally. Though the goal of our promotion is increase our sales, isn’t it? It’s the reaseon why that is called MARKETING MIX. All must support each other. When one of just less going well, we will difficult to increase sales.

The point is our location have to close or easily accessible by our target consumers. Another factor to consider is the density of population, income, population, number of firms in area, number of competitors and amount of traffic passing on our place.

Easy to reach by Product We Sell

This also is important because we must keep in place the availability of products we sell. If we choose a place some distance to where the production  is possible at certain times we will have difficulty to provide the products we sell. Inhibitors could be technical factors, human error or natural factors. In anticipation of that possibility, it should be our location should be easily accessible by products we sell.

Easily accessible by Employee

Although seemingly nothing to do with our sales performance improvement, but employee  is one factor determining to successfully increase sales. They are the spearhead of our sales. If our location easily accessible by employees, they don’t have transportation costs are too great for working and saving time. One side of their loyalty level will be maintained and encourages them to discipline, because there is no reason for employees to arrive lates.

Sometimes we don’t find a place that is really strategic within easy reach by all employees. So try to choose place that easily accessible minimum by our key employees. Because key employee is a matter that should receive priority service from company. If at any time, there is a need for decision-making, then they will come quickly and resolve problem.

As noted above, these factors are common but can be considered by all types of companies. Due to a company engaged in services, they usually have their own way to define a strategic location as a place to sell  Likewise with retail business and frenchise, they have their own benchmarks are more specific when it will determine the location of trading.

Maybe next time I will write for a more specific business form  as choosing strategic location for frenchise. So still visit this blog and keep trying to increase sales.

Still around the marketing mix :  product, the real benefits, attractively packaged and fitted price, if not promotion, how do people know? How do consumers remember our product being told and asked us if we do not introduce it? Of course not. That's why promotional efforts are needed to introduce products to consumers. Especially when our product was first introduced to the market.  Promotion is compulsory.

Promotion has always been an essential ingredient for selling goods and services in quick time. companies not only sell goods and services that are instant, but rather on instilling the strong brand image.

Most of us are familiar with  advertise campaign on television or radio. That's one of them, but as time and technology goes by, many other alternatives that we can use to promote. Later we are familiar with promotion mix term. Promotion mix is a combination of measures that are used by a company to promotion. So it is not always just on television or radio advertisements. Now we can advertise through banners, balloons, billboards, internet, newspapers, public relations, exhibitions, sales visits or so occasions.

The power of information and technology flows have led to the flow of goods and services produced by manufacturers from around the world easily presented to the consumer. For consumers this would make it easier to treat the choice of the appropriate level of financial need and have. Here, the customer becomes central point is always targeted. However, company is not easy to 'invite' the consumer to always buy each product marketed. Consumers have its own mechanism for selection in choosing and spending for goods and services offered.



Promotion has always been an essential element for selling goods and services in quick time with the maximum expected results. Here, companies not only sell goods and services that are instant, but rather on instilling the strong brand image to consumers so that consumers do not easily switch to another product and brand.


Power of influence to strengthen and reinforce the brand in consumers minds always use mass media both print and electronic. Because  mass media is the most effective means to reach consumers with ease and in record time.

Good promotion can increase sales not only a good product. Even products that have previously failed too, can win the market if it manages to pack through with good promotion. We can see some products that are highly in demand in market only because of its ads to be replaced. That is evidence that the good promotion can increase sales.

This is just introduction a good promotion to increase sales. We will discuss in another post.

This next series of 6 how to setting price on a product that has been published 2 day ago. Has been discussed previously set prices based on production costs, mark up and following the market trend based. Now we'll discuss the rest is, above market pricing, skimming and yields.

4. Pricing Above Market Price

Some people view, price reflects the quality.  If you dare, you can set a price above the market price, consumers will view our products are quality products.

Certain products such as medicines, multivitamins and milk, have a tendency of consumers think more higher the price more better the quality. Chances are, their quality is good or just a pricing strategy. We can play here if you clever and in accordance with your business and products are marketed.

5. Skimming Pricing

Skimming pricing means when fist time you market a product you set a high price. Does not mean high prices above the market, it could be same as normal price or market price. The point is first price should be higher than price further. These companies do not wait until have benefit rates can be lowered. It's pure pricing strategy.

Smart companies will enter the market first with a high price to get public perception that their products are pretty good. After getting perception that products are good, they start releasing the next product with a cheaper price. The second and subsequent items have cheap prices for quality products is lower than the first. Companies implementing this strategy because it assumes that price is a sensitive subject in the market.

6. Selling Pricing is based on Yields

Selling Pricing is based on Yields means how long it takes capital to get back. After return of capital may be selling price could be lowered slowly. Similar to skimming pricing, the difference is yields on capital account until the company gets back.

For example, to produce a product, company spent $ 100,000. If companies want to return within a year, minimum profit you need is $ 10,000 per month. You  can adjust the sale price you set is able to gain $ 10,000 in one month. After one year by a margin like that, companies can lower the selling price slowly.

That's 6 ways to set the price of a product that we can choose. Indeed there are many other methods, the most popular is this 6 way. We learn about the sale price of final destination so we can increase sales.

We must set an appropriate price for our product. This is important because after we produce and package the good product, we must set the right price acceptable to consumers and we get the benefit of our sales. There are at least 6 ways to set the price that we can choose. There are still other ways, but the most common is 6 in the following ways,

1.  Setting selling price by production cost

Setting selling price by production cost means setting selling price will we wear for the product depends on how much cost we incur in producing or getting  product. If it is to produce a dozen shoes, we suppose  production cost $ 100 and we want get profit $ 50,  sale price we got from production costs and profit that we want, so the selling price of $ 150.

This way pricing is very simple and most often used by people who are just starting a business like me. Many sellers who do not want to be bothered in determining the price of a good or service, then the way is then their choice.

But there is one obstacle in this type of pricing, which is needed flair to get the price calculation that actually correct. Because, in fact we know the overhead cost that we often ignore.

Overhead costs are all costs incurred for procurement of a product. But this cost is not included in production cost. Quite hard to explain, though more easily let's give an example. Suppose we are importer of vegetables from Indonesia. Often, We just calculate price of product and transportation costs from Indonesia up to our place. This is the cost of production. As for the Overhead Cost suppose percentage shrinkage of vegetables during the trip, parking fees, cost of transport workers in the port or maybe even a customs officer costs.

2. Mark Up based on Selling Price Determination

If we set selling price of goods or services based on mark up, we no longer need to calculate in detail all cost components for manufacture or procurement of the goods. Of course still be calculated but in the form of estimates, so no details. How about overhead costs was worried in setting prices based on production cost? This time we can ignore it.

We need to do is determine profit margins that we want to get. For example, if production cost $ 100 for a machine. We want to earn 20%  as profit margin, so selling price of these machines is $ 120. That’s simple, right?

It's almost same as determinate selling price based on production cost, but a benchmark here is profit margin that we want to get and usually a percentage like 10%, 30% or 50%.

My experience, bank officers who conduct surveys typically ask about how much turnover we get monthly. Then he'll ask how much profit margin that we set. So bank usually use this method to estimate profits of  his client company.

3. Selling Price Determination Following Market Trends

Selling Price Determination Following Market Trends often referred to as setting prices based on competitors. For certain items such as daily basic goods sometimes we are confused in setting the selling price? We do know cost production of goods, but we are not free to determine the selling price as in determining selling price based on production cost and selling price determination based on margin that I have written before. This is because consumers already know prices general of goods in market.


Generally applies to retail businesses, they try to grab consumers by selling goods at prices cheaper than general price are known consumer on market. Other techniques that look more cheap, they often use a little touch of psychology by reducing digits number of price. And if we are careful, the difference is just a little. For example, the general price is $ 100 then set to be $ 99. It’s looks more cheaper.

Of course not all goods to be sold like that, usually only for items most commonly sold. So deficit was covered by sales quantity.

Another positive impact of this technique is our stores branding. Because looking at a fairly cheap item in our stores, then consumers will automatically assume that all items in our stores are always cheaper than market price. So they do not hesitate to buy other goods. When in fact not case, price of other goods stay abreast of market prices or even higher.

That must be considered also, we should be able to analyze our position in market. If we as a market leader it must be ready with competition price of market challenger. Market follower is usually not too much trouble, simply by following price selling in market. Especially for market nicher he can set the selling price is more freely depending on niche that they conquered. The conclusion of each market participant will have its own characteristics to determine selling prices.

This is the first series of 6 to set the price of a product, wait for the sequel series. We learn about pricing, so we aim to increase sales.

How could be successful if we sell something that doesn’t consumer need? For example, we sell clothes for chicken. We all know that chicken pieces don’t need clothing, so the owner of chicken will not buy our product. Similarly, if we sell dinosaurs cages. Surely we will not succeed in selling because we know dinosaurs have been extinct. So before we start a business, we must know level of market demand for products or services that we offer. More required, probability of success in selling will be greater.

The other hand, although our product didn’t really needed will not necessarily fail. Just how we package it, promote it and educate market so consumers are more familiar about usefulness of our products. First, we should know level of consumer needs about our product. There is much needed by market and some are less needed.

Products by Market Needs

This type of product is really needed by market. For example, food and clothing. All people need this product. If our product is types of products required by the market, we already have one important point to succeed in selling. The problem is not just us which want to sell a product like this. We will meet with many competitors. Just how we regulate other Marketing Mix is Price, Promotion and Place to win competition.


We must properly pack our products, giving value for price, promote so well as to create branding which good in consumers sense and sell in right place or easily accessible by consumer will make us successful in selling and increase sales.

Less Product which Required by Market

This type seems less or not needed by consumers. But because company able to educate market with a variety of exciting and continuously promotions so it becomes a necessity. Marketing expert said that the need can be created was true.

Examples are insurance products.  Actually insurance isn’t too needed but because good at work around by insurance company so it becomes a necessity. Now  everywhere and more people are trying to have an insurance policy. Insurance products sales successfully educate market so they successfully selling.

As we already know type of products we will sell, then we must give the brand on our products. This is important because many people which sell similar products out there and consumer will remember brand of each company. Don’t forget to give a positive impression on brand. So consumers always remember and will buy and keep buying our products.

Another thing is the packaging. Give colors that represent our product, don’t forget to include brand and slogan on Packaging. Consumers may never know our real company, they will remember us from what they see and feel of our products. So the packaging was important because it will represent our company image.

This is just a simple review about what we should do on our products, first part of Marketing Mix should we understand to be successful in selling and increase sales.

Realize it or not, we are sellers. Not always goods and services that we sell, but in everyday life we are always doing selling. For example, selling ideas, words or performance and attitudes. So “sell” word have very broad meaning our lives. Of course, that we discuss in this blog is about increasing sales of goods and services to enhance our company's revenue.

Maybe there among us who say "I don’t have own business" or "I don’t work in marketing ", why should I learn to increase sales because it is a seller duty? Yup ... you are right! But if explored more deeply, the statement is not quite right. For this reason we work together in a company or organization is to get revenue.

Our income is taken from company profits. Companies benefit from the success of a sale. So all the elements in a company or organization organized neatly with ultimate goal, company succeeded in earn profits from sales process.

We are Seller and Must Selling

As I wrote above, basically more higher sales level, more higher the possibility of profit earned by company. If profits company increases, welfare of whole employees will be guaranteed. So selling activity, always have relationship with you, either directly or indirectly. We are Seller and let's learn to increase sales.

In companies, there are given job  to actually selling, there are also to manage finances duty, there are to lead a division duty, there are to charge of answering phones and complaints from clients and even some are in charge of preparing a cup of coffee and cleaning tables. Everyone has a each duty and every person should sell in accordance with their respective duties.

A coffee maker should sell his expertise to company by providing a great coffee to all employees so that employees comfortable in doing his job. A customer service to answer any question properly and consumer complaints for customers satisfied and loyal to company so they will still making a purchase. Essentially all of them work with each task so companies can still make and increase sales. So We are seller and should to selling well.

Selling is Heart of Company

Basically, all types of businesses are same,  it’s about how to get customers coming to buy, then come back to buy and keep buying. Because as good as manage a company, if consumers only buy once and never come back again, it can be ascertained that business will fail. So the point is how to sell by company because selling is heart of a company.

If a company makes a good sale, it will impact on all elements of corporate, employee welfare fullest, employees will remain loyal to work and offer the best for company. Otherwise if company failed to sell well, it will impact  whole thing. Level of employees welfare will decrease. Even if company has reached losses level, it's not unusual if some employees may be fired or demoted. Of course it's not like we want.

Because we are seller and selling is the heart of company, let us learn to increase sales.