One of the most important aspects that matter to the functioning of your business is the market you’re catering to. It is always advisable to have enough knowledge of your customers and the market in which you are selling your products.
It does not matter which area of the world you have set your business in, there will always be a relationship between your business and the market you’re catering to. The products you’re selling and the services you’re offering would always be subject to a change in the market environment and the market conditions prevailing where you function as an entrepreneur.
Generally, there are four major situations when it comes to the markets you need to select. Let me try to apply the fish in a pond analogy to the world of business, where a businessman is a fish and the pond is the market, to explain the following four situations:
Big Fish In A Small Pond
In such a situation, you are a huge brand functioning in a market that is relatively smaller. There are high chances of you gaining a monopoly in the product class you’re dealing with as there are very few other competitors as huge as you in the market.
The best example in this sector is Red Bull that has single-handedly owned more than three-quarters of the share when it comes to the market of energy drinks.
Big Fish In A Big Pond
This is the most practical and the most prevalent situation that you can be in today. You are a prominent brand in a market that has several other brands just like you. Here, there is a great scope of cut-throat competition and you need to resort to unique marketing techniques to give yourself an edge against your competitors.
This is also the market that witnesses a lot of financial borrowing – be it long-term and short-term loans for securing the overall finance or property finance to set up the best offices or simply any form of borrowing that aids the financial needs of a business organization.
Small Fish In A Big Pond
In such a market, your brand has minimal value. There are several big players out there in the market, while you are a small player having no say in the way the mechanism functions. This is a very prominent but the least desirable situation that any entrepreneur should find themselves in. Opening a broiler in a huge market full of vegetarians is a common example of being a small fish in a big pond.
Small Fish In A Small Pond
This is the most unlikely situation that you can be in. Theoretically, you would be a nominal brand in an already small market. However, this would hardly be the case as there is always a case of a bigger fish or a bigger pond in the scenario you’re functioning in. Even if a market such as this tends to exist, it would no longer sustain as there would be no progress or profit to the business organizations functioning in the concerned market.
For any business, relationship marketing is vital. Not every business understands the worth but relationship marketing has its own benefits. Here are few benefits of relationship marketing.
Creates Business Opportunities
When a business aims to build its relationship marketing skills, it allows the way for more business opportunities. This is due to the personal connection experience that leaves a long-lasting impression of the company on the people.
The experience that you create for your customers will make them come back to you more frequently. Hence, when they are asked for referrals, your business will be on the top of your customer’s mind.
Staying on top of your audience’s needs
When businesses focus on a person-to-person relationship model they get to understand what their audience desires the most. Not fulfilling your audience’s desire can affect a company’s potential growth. Your target audience will not have any purpose of coming back to your business. This would mean that your company may disappear forever.
Add your own flair
As more and more people are starting their own venture, jobs are getting more and more unreliable. For your business to be able to compete in this ever-changing economy and small business market, it has to stand out. Hence, your company needs its own flare.
By implementing relationship marketing, a business can easily and quickly develop their unique style. Relationship marketing allows businesses to learn about its audiences’ requirements and gain their trust in the techniques the business uses.
As an entrepreneur, it is your duty to have a thorough analysis of the market you choose to serve. You need to have a decent idea about your relationship with the market – which includes the buyers, competitors, suppliers and other authorities before you go ahead and start your venture. After all, it is rightly said that the market defines a seller and a seller defines the market!