How to Create a Category and Shape a Market

By David Ronald  

Most companies think they’re competing in a market.  

The best companies realize they’re competing to define it...  

And that distinction is everything. 

If you enter an established category, the rules are already written. Buyers have expectations, analysts have frameworks, and competitors have carved out positions. 

You’re playing a game that someone else designed, where differentiation is incremental and price pressure is inevitable. 

But, when you create a category, you shift the conversation entirely. You redefine the problem, not just offering a better solution. And in doing so, you give yourself permission to lead. 

In this blog post I explore how to create a new category and share a market.

The Difference Between Positioning and Category Creation

Positioning is about standing out within a category.  

Category creation is about redefining the category itself.  

Most marketing teams are comfortable with positioning – they refine messaging, sharpen value propositions, and highlight differentiation. It’s necessary work, but inherently reactive - you’re responding to an existing frame.  

Category creation, on the other hand, is proactive.  

It asks a more fundamental question: Are we solving a problem that the market fully understands – or are we seeing something others don’t yet see clearly?  

If it’s the former, positioning will suffice. If it’s the latter, you have an opportunity, and a responsibility, to shape the narrative.

The Mechanics of Category Creation

Category creation is a coordinated effort across product, marketing, sales, and leadership. 

At its core, it involves these three interlocking moves:

1. Reframe the Problem

Every category is built on a shared understanding of a problem. To create a new category, you need to challenge that understanding, which often means surfacing a hidden cost, risk, or opportunity that the market has overlooked.

For example:

• Moving from “file storage” to “content collaboration”.
• From “customer support” to “customer experience”.
• From “data tools” to “data platforms”.

The shift is conceptual, not just semantic. It expands the scope of what buyers should care about.

2. Introduce a New Lens

Once you’ve reframed the problem, you need to give the market a new way to evaluate solutions. This is where frameworks come in. And, in my experience, great category creators simplify complexity into clear, memorable constructs:

• Maturity models.
• Capability maps.
• New metrics or KPIs.

These tools do two things:

1. They educate the market
2. They position your approach as the logical answer

If buyers start using your language to describe their challenges, you’re shaping how they think.

3. Anchor Your Solution as the Standard

The final step is to connect your product to the new category in a way that feels inevitable. This is where many companies stumble because they either:

• Stay too abstract and fail to tie the category to their offering, or
• Get too product-centric and lose the broader narrative

The goal is balance – your product should feel like the natural embodiment of the category you’ve defined, and not just one option among many.

Common Pitfalls to Avoid

Category creation is powerful, but it’s also easy to get wrong. Here are some common pitfalls to avoid:

1. Overcomplicating the Message – if your category requires a 20-slide deck to explain, it won’t stick. Simplicity wins.
2. Ignoring the Customer’s Starting Point – buyers don’t wake up thinking in your new category. You need to meet them where they are and guide them step by step.
3. Declaring a Category Without Earning It – you can’t just name a category and expect the market to follow. It requires sustained effort, credibility, and proof.
4. Misalignment Across the Organization – if marketing is pushing a category narrative but sales is selling features, the strategy falls apart. Alignment is critical.

A Practical Way to Think About It

If “category creation” feels too abstract, I recommend simplifying it. It’s about answering three questions better than anyone else:

1. What’s the real problem?
2. Why does it matter now?
3. What’s the right way to solve it?

If you can answer those questions clearly, and consistently, you’re already shaping the market.

Conclusion

Most companies wait for the market to tell them who they are, but category creators do the opposite. They define the problem, name the solution, and invite the market to see things their way.  

It’s not the easier path. It requires conviction, patience, and alignment across the business. But, if you get it right, you’re no longer competing for attention within a crowded space… 

Because you’re building the space itself.  

Thanks for reading. 

Are you interested in discussing how to create a category and shape a market? If so, feel free to get in touch. My email address is david@alphabetworks.com – I look forward to hearing from you.