Page 76 - Duct Tape Marketing

60 Part I: Getting Started in Marketing

• Business readiness: Are you ready to issue an invitation for new
customers to try out your business? Do you have the inventory (or
for a service business, the staff and talent and capacity) to deliver
what you’re offering? Is your staff informed of the offer and ready
to help prospects become buyers once they respond to your offer?
(How many times have you called in response to an ad only to
have a sales associate say, “What? I don’t know about that offer.
Let me ask my supervisor.” And how many times have you hung up
after being placed on hold? That’s wasted advertising!)

When market share means market saturation

The common rule is that 25-percent market ߜ Your business gets complacent, quality gets
share is considered a dominant market position. lax, and customers begin to stray.
As you calculate your share within your target
market area, watch closely as it reaches a dom- ߜ Your customers have bought the products
inant position. When it gets there, take time to they need from you. Other than replace-
celebrate, for sure, but then be aware that as ments, their purchases are few and far
your share edges still upward, it will near a level between.
called market saturation.
ߜ It’s time for change. Look for new markets
Market saturation occurs when a business cap- to open, and new products to offer within
tures the sales of close to a majority of the your current market. And most of all, it’s
potential customers within the target market. time to restore emphasis on customer serv-
Usually that figure is pegged at about 40 per- ice and satisfaction — the very thing that
cent. Once a business is doing that well, one of made the business a success in the first
several things tends to happen: place.

ߜ Competition enters the market area. Take a Market dominance is the dream of every busi-
second to review the Product Life Cycle ness. But keep your eye on the road in front of
(Figure 3-3 in Chapter 3). Saturation hap- you so that should you near saturation, you have
pens sometime after a new business or a plan for where you’ll go next to grow your
product reaches its maturity in the market- business. Don’t turn from a growing market too
place. By then others realize that market soon, and don’t cling exclusively to a saturated
opportunity exists, which brings on a line- market too long. Use market share knowledge
up of Johnny-come-lately competitors. as your navigating device.