Particularly important when you're a new company
in a new category
Particularly important when you're a new company in a new category
WATCH VIDEO →Established companies in established categories have
a different buying process
This is also why there is initially a strong dependency on a handful of key people in the most important deals. But as time goes on, people further down the organisation can simply buy the established solution
It becomes a sanctioned choice without any doubts about whether it's the right type of Additionally, when you're new, you're not necessarily competing directly with other companies in the same category. You're often competing against other categories and subcategories.
Sometimes, your problem may not be substantial enough for potential buyers to prioritise because they have limited time and resources, and they already have their own set of priorities.
Even if you have a solution that stands out, you may still struggle to secure a deal if the problem isn't considered significant enough.
Normally, we discover the "W" when there's a need for a solution in the market. In the established category and with an established vendor, the buying decision is typically made by ‘Stefan’ because he has the authority and it's already sanctioned.
The technology choices and stack are already established and approved. Someone within the organisation identifies the problem and presents it to higher-ups, like the Chief Information Officer (CIO), saying, "We need to solve this problem." They may evaluate three or four different vendors in that specific category and recommend the preferred one. Usually, there is already a budget allocated for this solution.
The decision-making process doesn't usually involve higher levels of hierarchy since it's a familiar and established category.
The key distinction between the two games lies in the approach and decision-making dynamics. In the established category game, the focus is on comparing vendors and making a decision within a known framework.
In the new category game, the focus shifts to promoting the category, influencing top-level decision-makers, and defining the requirements before selecting vendors. Understanding this contrast is crucial for framing the messaging, positioning, and go-to-market strategy. It helps determine the appropriate approach and level of engagement when selling a technology or solution in either an established or new category.
