Today, consumers face nearly endless options, and AI is speeding up competition in every industry. A strong product used to be enough to win customers but not anymore. Standing out now takes category design, positioning, messaging and thought leadership. That doesn’t always mean a big marketing budget, but it does require a different approach.
Joining us on this episode of Business Trends Today is Bruce Cleveland, CEO and founder of Traction Gap Partners, a firm that helps businesses sharpen their market positioning and drive growth. Cleveland is also author of the new book Market Engineering: Because Markets Don’t Build Themselves, which lays out a framework for how companies can define their category, sharpen their message and build lasting influence in their markets.
Market engineering is the practice of building a business’s identity from the ground up, rather than fitting into a category someone else already defined. Businesses that don’t often have trouble gaining traction, no matter how strong their product or service is.
"The effort really is how can you either redefine an existing market… You get to redefine the rules, the way that the game is played, how people make their decisions. If you can't do that, you live by other people's rules."
Cleveland says market engineering rests on five connected elements:
Businesses that enter a market someone else already shaped end up operating by that leader’s rules, Cleveland says. But a business that redefines its category through market engineering sets the terms other companies must respond to.
Positioning and messaging are often treated as the same thing but they serve different purposes, Cleveland says. Positioning is how a business fits into the market the way customers already view it. Messaging is the language a business uses to explain who it is and what it does.
Cleveland said new vocabulary matters for businesses chasing thought leadership. Companies that introduce fresh language give customers a reason to listen and engage. Those that rely on the same words as everyone else struggle to stand out.
Category design means shaping a market around a business’s own terms, rather than fighting for space inside a category someone else has already built. Cleveland pointed to Red Bull as a clear example of this in action.
Rather than compete directly against Coke and Pepsi as another soda brand, Red Bull built an entirely new category. Cleveland said the company became known as the category’s leading voice, backed by bold, attention-grabbing advertising that got consumers talking.
Cleveland also pointed to Patagonia as an example of a company that built loyalty by standing for something beyond its products. The outdoor apparel brand is known for its commitment to environmental issues and backs that stance with social investments that go beyond its commercial business.
Generative AI is changing what it takes to compete, Cleveland said. He says AI has leveled the playing field by cutting the cost of building products across nearly every industry.
“if you're building a product, whether it's a technology product, consumer product, anything really, AI can have a dramatic effect on reducing the cost of creating that product.”
Cleveland says this shift makes category design and positioning more important than ever. Businesses now need to build their identity around those elements, not just their product.
He said this approach doesn’t require a large budget. Speaking at conferences, writing books and engaging local business groups such as Kiwanis or Rotary Club can build credibility more effectively, and at lower cost, than traditional demand generation tactics like advertising and email campaigns.
The businesses that stand out in this new environment will be the ones that treat category design, positioning and messaging as seriously as their product, Cleveland says. That shift gives small and midsize businesses a real opening, since building a distinct market presence costs far less than traditional advertising and demand generation.
Business Trends Today, The Small Business Show