Market Sophistication was popularised by legendary copywriter, Eugene Schwartz, in his famous book Breakthrough Advertising.

It shows how markets differ based on their level of saturation with similar products/services (and how to adapt your marketing to suit).

The 3 Stages 👇🏻

Stage 1 - First to Market.

• Focus on the features & benefits of your product/service to educate the consumer.

• What ONE BIG PROMISE can you make?

• E.g. Nespresso initially had no competitors so the promise of "better than instant coffee but just as fast" was enough.

Stage 2 - Second to Market (i.e. a few competitors).

• The marketing focus here should be about how you position your product as BIGGER, FASTER & STRONGER than your competition.

• E.g. the ride-sharing market has a handful of players (Uber, Didi etc.) making stage 2 claims.

Stage 3 - Crowded Market with Many Competitors.

• Focus on how your product is RADICALLY DIFFERENT from the competition.

• E.g. Ford Ranger is marketed as Australia's HIGHEST SELLING CAR rather than being “bigger, faster & stronger” than it's direct competitor Toyota Hilux.

But here’s the BIG problem:

Most businesses operate in saturated stage 3 markets…

(which is fine, as the presence of many competitors proves there is a viable market in that space).

BUT…

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They craft marketing as if they were in stage 1 (basic features & benefits) or stage 2 (bigger, faster & stronger than the competition).

For example:

• We use the best local ingredients (stage 1 claim).

• We have 7 years warranty rather than 5 (stage 2 claim).

Cont...

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These claims can form PART of your message but if they're the central focus, you’ll get drowned out by the noise.

(as EVERYONE in your market is saying the same thing).

The BIG CHALLENGE is to communicate how you are RADICALLY DIFFERENT from your competition.

For example...

At a time when everyone was competing to make running shoes LIGHTER & SMALLER (in a very over-saturated market), Hoka differentiated their products by making their shoes BULKIER & HEAVIER ( and emphasising comfort and support).

Cont. 👇🏻👇🏻👇🏻

Hoka are now the fastest growing brand in this space due to creating & communicating a radical point of difference (next time you go to a hospital you’ll notice at least half of the nurses are wearing Hoka runners).

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