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Category Design Drives Markets by Mark Donnigan
Category Design Drives Markets by Mark Donnigan
Category Design Drives Markets by Mark Donnigan
Marketing has one task, drive business outcomes. Never has the marketing leader and team needed to be
more versatile. Following the MBA marketing playbook no longer works. In today’s marketplace, the buyer
has all the power. For most markets it’s not technology risk but business risk that is the greatest.
Marketing value is measured by revenue impact. The B2B sales process is fragmented and complex with
dozens of stakeholders needing to sign off on a purchase decision, which leaves some traditional marketing
ROI and attribution techniques no longer effective.
The answer is for your company to address the market by defining a problem and naming the category of
solution that your product delivers. Category Kings take 76% of the entire markets value. They define the
market by having all competitors refer to them for comparison. Ex: Salesforce = CRM, AWS = public cloud.
The only way to drive a market is to be the Category King. If you are not a Category King, you are picking up
scraps and your marketing spend will be much higher as percentage of revenue than the leader, because
the entire industry is left to fight over the remains. Marketing’s job #1 is to define and drive your category.
Source: playbigger.com/ 5
MARKETING PILLARS
Precise market engineering is required to create uncontested space by becoming the Category King.
Three areas to conquer are Product, Demand Generation, and Category Design.
PRODUCT MARKETING answers DEMAND GEN MARKETING is the Go-to scale does not happen by
the “why your solution?” It must rocket fuel for sales, though accident. Category Kings take 76%
be problem-solution centered constituents include the entire of the whole market leaving all
with sufficient technical detail to company. Demand Generation other players fighting for scraps.
clear evaluation checks by cannot be measured from a MQL The #1 job of the exec
technical validators. It should lean or SQL perspective only. Demand team/founders and marketing
heavily on performance and Gen is supported and enabled by leader is to “become the king.”
benefits to support the sales CATEGORY DESIGN. CATEGORY DESIGN is the bedrock
process. for DEMAND GEN MARKETING.
To win a market,
Define Problem Name Category
marketing must lead with
Define the problem Name the category the objective of defining
that needs and reference it
and dominating a
addressing for the when presenting
category.
category to exist. your product.
1 2
Category design is a process, but
there has never been a dominant
Develop a POV 3 4 Mobilize company in a market space who
A point of view is how The entire company wasn’t the category definition.
you will explain the must be activated in Example: AWS (cloud
need for solving the the category design computing). Salesforce
category problem. process. (SaaS-CRM). UBER (ridesharing).
Apple (iOS/mobile).
Source: playbigger.com/category-design
Crafts product messaging, and take an Able to dissect markets, observe and
active evangelism role. Have great take action, network and
instincts on category and communicate with customers using
consumer/market message fit. intuition that is informed by logic and
experience.