In other words, what is the marketplace behavior your business is set up to serve?
For example, let’s look at the $570 billion fast food industry. To survive in this competitive arena, companies must know and effectively serve their niche.
Jimmy John’s does this by being Freaky Fast. Everybody eats, but Jimmy John’s isn’t trying to serve everybody. The company’s premise is satisfying casual food seekers whose primary decision-making criteria is speed of delivery.
Subway, on the other hand, touts its ability to make your sandwich with fresh ingredients exactly how you want it. The company’s premise is effectively serving casual food seekers whose primary decision-making criteria is getting the exact ingredients they want.
Finally, there’s McDonald’s. This fast food behemoth’s premise is satiating casual food seekers looking for affordable food served at the right temperature quickly.
On the surface, all three companies are in the casual/fast food marketplace, but each one differentiates itself by its unique premise.