Industrial Business Strategy: The Logical Choice for Market Focus

‘Take whatever you can get your hands on’ seems to be a popular approach for new business in times of crisis. And who can blame those who do, because the order book needs to stay filled. It does mean, however, that many manufacturing companies are still doing too much for too many customers. There is no market focus. Without that focus, achieving any growth ambition is virtually impossible.

 

Risks at a glance

Lack of focus affects several areas. The impact is felt by all departments in your manufacturing company. Engineers struggle with the further development of products. Marketers are unsure of what to communicate. Sales works hard without really getting anywhere. This unclear situation creates an imbalance and stress in the workplace.

Lack of focus stagnates long-term growth in innovation, development, new business development, sales, and profits. Ultimately, all of this is detrimental to the company's net worth. This puts the future of these manufacturing companies at risk.

Direction, calm, and regularity

Choosing for market focus has great advantages. Specialization brings direction, calm and regularity, and ensures the company is seen more quickly as a real specialist. Having a specialist area of expertise enables the organization to conceive and develop new and better solutions. In short: becoming even better at what you're already good at.

“They challenge you to make choices and force you to add focus.”

Joost van Aaken, Managing Director at ARODO

ARODO, a Belgian OEM based in Arendonk, chose an absolute focus on packaging solutions for high-quality powders.

“As an industrial marketing company, TEUN forces us to think and ask fundamental questions. Who are we? How do we set ourselves apart? And where do we want to be in five or ten years? They challenge you to make choices and force you to add focus”, says Joost van Aaken, Managing Director of ARODO.

Whether you are an industrial manufacturer or machine builder: at TEUN we believe every manufacturing company deserves its own niche. Why? Because choosing a niche is the best gift a manufacturing company can give itself. It's what we firmly believe and what our clients experience every day.

ARODO Packaging Machines Location Arendonk

Ideal competitive
strategy

Choosing for market focus means choosing ‘the ideal customer’. Focusing on your ideal customer as well as on unique values together form ‘the ideal competitive strategy’. Choosing this strategy often means choosing a new business proposition.

This message sometimes evokes resistance, and we can understand the reasoning. But going from broad to narrow doesn't automatically mean saying no to existing or less ideal customers. It means making a switch over time from choosing your customer randomly to choosing new, ideal customers.

Specialist in the market

The ideal competitive strategy has three main advantages:

  • Adding focus: helps in making sound choices, most specifically when drawing up an effective industrial marketing strategy.
  • Being seen as a specialist: leads to a stronger negotiating position.
  • Margins can increase: has a positive effect on the operating result.

Now is the time: there is a growing need for specialists in the industry.

Unique values make a company recognizable as a specialist. Given the growing need for specialists, it's a win-win situation. The manufacturing company becomes a strong brand with a distinctive proposition that gives direction to every aspect of the business: from innovation to commerce, from management to support.

Following on from the new, razor-sharp proposition is an industrial marketing strategy on how to market the chosen solutions and reach new, ideal customers.

Industrial Business Strategy: The Logical Choice for Market Focus

The right efforts

To build a reputation as a ‘specialist in the market’, you need to make the right efforts. The required efforts call for a transformation in sales, given the fact that the B2B buying process in the Manufacturing Industry has changed so dramatically. This transformation mainly relates to cooperating more closely and better with marketing and acting according to a modern-day industrial marketing method.

All efforts combined lead to high-quality leads, orders, and sales. Adopting this strategy means building the commercial viability of your manufacturing company. We delve deeper into this matter in our white paper on the future of the Dutch manufacturing company.

Whitepaper: De Toekomst van het Nederlandse Maakbedrijf

The Future of the Dutch 
Manufacturing Company

The white paper on sustainable growth, closing the deal and four tips on doing business even better.

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Conclusion

Many manufacturing companies are having or can expect to face difficult times because they lack market focus. Growth steadily stagnates in the areas of innovation, development, sales, and profits. All this eventually has an impact on the company's market value.

As an industrial marketing company, TEUN can help manufacturing companies achieve their growth ambitions by employing the ideal competitive strategy. This means choosing a niche market and unique values that lead to the position as a ‘specialist in the market’. And, as you now know, that position pays off.

Curious about what a strong market proposition can yield you? Contact Tim van der Aa. Taking real-life examples as the basis, you will understand how the process works, what it leads to, and what it can do for your manufacturing company.

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