Legendary startups focus on creating new market categories instead of competing in existing ones.
Category design involves evangelizing a unique problem-solving approach to shape new market categories.
Deep dives
Category Design and Marketing Expertise of Christopher Lockhead
Christopher Lockhead, known as the 'godfather of category design,' emphasizes the distinctive skill required to create and dominate markets instead of just competing within existing ones. He believes that the traditional approach to marketing, focused on gaining market share in existing categories, is flawed. Legendary entrepreneurs like Steve Jobs and Sarah Blakely didn't seek to be compared to others but aimed to create new market categories, thus driving demand rather than capturing it.
The Significance of Thinking Different in Startups
Lockhead contrasts the startup mentality with established company practices, pointing out that startups should focus on category design and creating movements. Startups should challenge existing market segments by envisioning a better future rather than simply aiming to be better than competitors. Through category design, entrepreneurs like those behind Lyft and Airbnb introduce new perspectives and redefine customer needs, ultimately changing market dynamics.
Differentiating Category Design from Traditional Branding
Lockhead highlights the distinction between branding, which revolves around the company or product, and category design, which focuses on customers and creating a new market vision. By evangelizing a unique problem-solving approach and engaging super consumers early, entrepreneurs can shape new market categories. This approach fosters differentiation and category dominance, as seen in examples like Netflix and Five Hour Energy.
Evangelizing Futures Over Products in Category Design
In category design, founders are encouraged to market the category vision more than the product itself. By embracing a provocative point of view and continuously evangelizing the future state they envision, entrepreneurs can carve out distinct market positions and drive category growth. Lockhead suggests allocating a significant portion of marketing efforts to promoting the problem, opportunity, and future rather than solely focusing on product features.
Christopher Lochhead is a bestselling author, #1-rated podcaster, and one of the best marketing minds of our time. As one of the co-inventors of category design, Christopher offers valuable insights for startups wanting to stand out in an ever noisier world. In this episode, Mike Maples Jr talks to Christopher Lochhead to clarify what category design is and why it’s vital for founders determined to create something legendary that changes the future.
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