Defining the Problem

The step of defining the problem is crucial in category design, which focuses on differentiating a business from its competitors. This approach encourages marketers to avoid the trap of simply being 'better, faster, or cheaper,' as buyers today are often far along in their purchasing journey before even contacting a vendor. For example, the iPod's launch illustrates this concept effectively; instead of focusing on technical specifications like memory capacity, Steve Jobs highlighted the user-friendly proposition of having 'a thousand songs in your pocket.' This reframing helps businesses to not only identify the key issue they address but also to clearly articulate the category they are creating.