Define, Dominate, and Defend Your Startup's Market Category

In the early days of Salesforce, Marc Benioff boldly declared that software is dead and coined the term Software-as-a-Service. While his claim raised eyebrows at the time, it established Salesforce as the pioneer of the massive cloud computing wave that would disrupt the entire software industry. Benioff instinctively understood a fundamental truth about go-to-market strategy for startups: when you're selling something the world has never seen before, you can't rely on customers to figure out why they should buy it. You have to define the problem you solve and the market you serve. In other words, you have to create the category. What is Category Creation? Category creation is the art and science of defining a new market category to contextualize your startup's product or service. It's a go-to-market strategy for innovative offerings that don't fit neatly into existing market segments or directly replace an incumbent solution. The goal of category creation is to proactively shape how the market perceives the problem you solve and the value you deliver, rather than conforming to preconceived notions or getting lost in the noise. By establishing a new category, you give customers a familiar framework to understand your unfamiliar product. As the creator of the category, your startup gains a first-mover advantage in building mindshare and market share. You have the opportunity to define the key metrics and buying criteria in your favor. And you create a gravitational pull that draws in customers, talent, partners, and investors eager to be part of the hot new space. Examples of successful category creation abound: → Hubspot with Inbound Marketing → Gainsight with Customer Success → Intercom with Conversational Customer Engagement → Snowflake with Data Cloud In each case, the company defined a new problem space, gave it a catchy name, and established itself as the leader of the emerging category. This proactive approach enabled them to stand out and grow exponentially. Of course, category creation is not for everyone. It requires a truly disruptive innovation, a willingness to play the long game, and deep pockets to fund market education. For startups with a clear value proposition in a well-defined market, a traditional positioning and differentiation strategy may be more appropriate. But for those on a mission to change the game, category creation can be a powerful weapon. As legendary showman P.T. Barnum once said, "Without promotion, something terrible happens... nothing!" So go forth and create the category. Be the showman who captures the world's imagination. And build something legendary.