Most share shifting in the industry seems to be coming from volume gained within existing customer relationships rather than from new customers
Symptom: Much of today's share growth appears to be coming from volume gained within existing customer relationships rather than from gains in new customers.
Implications for the market:
In any market, a company can take share from its competitors either by increasing its penetration of existing customer relationships or by taking some or all of the volume in a new customer relationship.
The advent of hostility shifts the primary source of share growth, requiring a change in marketing emphasis.
In a non-hostile market, a company gains most of its share by displacing competitors in new customer relationships. The marketing emphasis should be on selling to new customers.
In hostility, however, most successful companies gain the bulk of their share increases from current customers. The marketing emphasis should shift to selling more within existing customer relationships.
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Perspectives: Conclusions we have reached as a result of our long-term study and observations.