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Paradoxically, two important outcomes of owning a market are substantial earnings, which can replenish the company’s R&D coffers, and a powerful market position, a beachhead from which a company can grow additional market share by expanding both its technological capabilities and its definition of the market. Both approaches could prove fatal to a business. Unquestionably, IBM owned the business market; for Apple, a market-share mentality in that arena would have been pointless. It pushes a company to look for incremental, sometimes even minuscule, growth out of existing products or to spend lavishly to launch a new product in a market where competitors enjoy a fat, dominant position. Because of the existing market segmentation, Convex could have seen its only choice as competing for market share in the predefined markets: in supercomputers where Cray dominated or in minicomputers where Digital led. Genentech, for example, clearly emerged as the R&D pioneer in biotechnology, only to be acquired by Roche. Take, for instance, the case of Convex Computer. Within this new market, Convex established itself as the leader.Because you own the market, you become the dominant force in the field; because you dominate the field, you deepen your ownership of the market. Your objectives will come into play here, too. These huge profits are recycled into a new spiral of R&D, innovation, market creation, and market dominance. When you own the market, you develop your products to serve that market specifically; you define the standards in that market; you bring into your camp third parties who want to develop their own compatible products or offer you new features or add-ons to augment your product; you get the first look at new ideas that others are testing in that market; you attract the most talented people because of your acknowledged leadership position. Ultimately, https://marketingdirect.lu deepen your relationship with your customers as well, as they attribute more and more leadership qualities to a company that exhibits such an integrated performance. Finally, the customer got a demand letter from Pumpco, indicating that someone at Pumpco had made the mistake of not sending the equipment C.O.D. The first company-call it Gluco-delivered the replacement instrument to the customer within 24 hours of the request, no questions asked.The problem with the first is that it leads to an internal focus. Marketing’s ultimate assignment is to serve customers’ real needs and to communicate the substance of the company-not to introduce the kinds of cosmetics that used to typify the auto industry’s annual model changes. Defining the field, Oxford: Butterworth- Heinemann. Smart marketing means defining what whole pie is yours. Instead, with technology alliances and marketing correctly defined, Apple created-and owned-a whole new market: desktop publishing. Once inside the corporate world with desktop publishing, Apple could deepen and broaden its relationships with the business customer. In a later move, Apple did the opposite, redefining a market by narrowing its definition. Intel did the same thing with its microprocessor. Several days later, the customer received the replacement with no instructions, no information, no directions. Its job is neither to fool the customer nor to falsify the company’s image. The keiretsu industrial structure allows them to use all of the market’s infrastructure to achieve this; relationships in technology, information, politics, and distribution help the company assert its leadership. The video we consume is getting shorter and shorter, thanks to platforms like TikTok?. Determined to define a market it could own, Convex created the “mini-supercomputer” market by offering a product with a price/performance ratio between Cray’s $5 million to $15 million supercomputers and Digital’s $300,000 to $750,000 minicomputers.