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Breaking into GTM

Should we create a new category or just say we are a better version of something that already exists?

For almost everyone at the start, the answer is the existing category. April Dunford's own count is that around 90 percent of recently public tech companies positioned inside a market that already existed, and creating demand for a word nobody is searching for is a multi year, capital heavy job. Start in the category your buyer already budgets for, win a specific slice of it, then redraw the lines once you have money and momentum. Category creation is a thing you earn, not a thing you announce.

Go deeper

5 resources, 1 India-specific, 5 link-checked.

📄 Article
✓ Link checked Free Beginner

The clearest short explanation of why market category is one of five interdependent positioning pieces, with a real repositioning story attached. It is also where Dunford makes the case that most companies should not invent a category.

A Quickstart Guide to Positioning

From aprildunford.com by April Dunford 12 min read

  • Positioning has five components: competitive alternatives, differentiated features, value, target segment, market category.
  • Always start from competitive alternatives, or you get positioning that sounds good internally but is not differentiated.
  • 90 percent of tech companies that IPO'd in the past five years were positioned in existing markets, not new ones.
  • Dunford's own repositioning took a product from under 2M dollars to close to 80M dollars in 18 months.
Open aprildunford.com
📰 Newsletter
✓ Link checked Freemium Advanced

Deals with the four places positioning work actually stalls, including teams that cannot agree on their competitive alternatives. Useful once you have tried positioning and it went nowhere.

A guide to advanced B2B positioning

From Lenny's Newsletter by April Dunford 18 min read

  • B2B vendors typically lose about half of all opportunities to whatever the prospect uses today, sometimes over 80 percent.
  • There are only two pure points of value in B2B: help a business make money or save money.
  • Watch for whale bias, where the team positions against one big lost deal to a competitor they rarely meet.
  • About half of status quo losses are customer indecision, not a real vote for the incumbent.
Open lennysnewsletter.com
📄 Article
✓ Link checked India Free Beginner

The founder's own account of entering an existing category (help desk) against Zendesk rather than inventing a new one, and winning on price and simplicity for SMBs. The clearest India example of segment choice beating category invention.

The Freshdesk Story: Where and How it All Started

From Freshworks by Girish Mathrubootham 9 min read

  • The idea came from a Hacker News comment about Zendesk raising prices 60 to 300 percent.
  • The founders quit in October 2010 and ran a six person team on roughly 5K dollars a month, paying 30 to 50 percent of market salary.
  • About 350 to 400 dollars of ads across Google, Facebook and LinkedIn produced more than 150 valid signups.
  • Talking to SMB customers pushed multiple support emails, SLAs and business hours ahead of social integrations.
Open freshworks.com

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The same ground, at another level

How category design reads from a different seat.

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