What is a market leader?
A market leader is a company that has the largest market share for its products or one of its products. It also can be defined as a company that is a leading innovator in product delivery, marketing, or sales.
How market leadership works
Market leaders are built on investments in strong marketing and marketing plans. Products might not always be perfect, delivery systems might get glitchy, but strong marketing helps position brands as market leaders in the eyes of consumers.
Market leaders are built over time, which means treating customers like family so they keep coming back. Market leadership cannot be won if a company is not retaining customers and is instead investing its energy in replacing customers who may move on to the competition.
Market leaders are able to constantly change and pivot in ways that improve their operations and boost their revenues. The target market is constantly changing, and companies that have the flexibility to change come out on top.
Why market leadership matters?
Market share equals profits. When a company is a market leader it has the ability to move the market in directions it wants, whether through introducing new product or expanding existing product lines.
Loyalty for the long-term
A company that positions itself as a market leader has established loyalty with its consumers. That loyalty translates to increased sales over time and using deeper relationships with customers to expand the brand at the grassroots.
The larger the market share, the better the ROI, especially on investments in marketing and advertising. As those budgets my be required to increase to maintain market share, increased revenue from product sales more than offsets the increase. The dog wags the tail.