GTM Fundamentals

Category design

Category design is the discipline of naming, shaping, and defending a new market category in which a company can become the default choice.

Category design was popularized by Play Bigger (Ramadan, Peterson, Lochhead, Maney). The idea is that the most valuable companies do not win by being the best in an existing category. They win by defining a new category and then owning it. The work involves naming the category, describing the problem it solves, articulating why existing categories fall short, and rallying customers, analysts, and press around the new frame.

Done well, category design creates a moat. The company becomes the reference implementation. Analysts cite them first. Prospects ask for them by name. Competitors have to explain themselves in a frame that was designed by someone else.

Done poorly, category design produces words that nobody uses. A made-up name that requires a paragraph to explain is a tax on every sales conversation. Buyers have to translate from the vendor's invented language back into the words they already use. The translation step burns trust and slows deals.

The Amdahl view

Avoid made-up category names that require a paragraph to explain. Successful category designs almost always use words the buyer already understands and rearrange them into a new point of view. Inbound marketing was two known words with a new POV. Product-led growth was three known words with a new POV. The villain of category design is the invented compound term that sounds impressive in a pitch deck and dies in a sales call. If the category name does not land in the first 10 seconds of a demo, the category is not designed, it is imposed.

In practice

What Category design actually looks like in real product work.

  1. 01

    Inbound marketing reused two existing words and redefined the space under them. The category did not need a glossary entry to land in a sales call.

  2. 02

    Product-led growth landed because buyers already had a mental model of both product and growth. The POV was the new combination, not the vocabulary.

Frequently asked

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