Eugene Schwartz’s stages of market sophistication

From “Breakthrough Advertising” (1966). This framework describes how markets evolve over time as competition increases, and how your messaging strategy must change at each stage to remain effective.

Stage 1: Be first

You are the first product in the market. Simply state what your product does and the benefit it delivers. Direct, straightforward claims work because the audience has never heard them before. No proof or elaboration needed — the claim itself is news.

Strategy: Make a direct claim. “This tool builds your startup’s website in minutes.”

Stage 2: Enlarge the claim

Competitors have arrived making similar claims. To stand out, enlarge your claim — be bigger, faster, cheaper, or more complete. Outdo the competition with a bolder promise. The market still responds to claims, but they need to be more impressive.

Strategy: Amplify the promise. “Build a complete marketing suite — website, pitch deck, brand guidelines, and social assets — in one session.”

Stage 3: Introduce the mechanism

The market is saturated with big claims and prospects are growing skeptical. Claims alone no longer differentiate. Introduce the unique mechanism — explain HOW your product delivers the result. The mechanism becomes your differentiator.

Strategy: Explain the “how.” “Our AI-powered blueprint system transforms your brand inputs into pixel-perfect marketing materials using a deterministic rendering pipeline.”

Stage 4: Enlarge the mechanism

Competitors have copied or introduced their own mechanisms. To stand out again, make your mechanism bigger, more sophisticated, or more credible. Add specificity, proof, and technical detail. Stack mechanisms or add a proprietary angle.

Strategy: Expand and prove the mechanism. “Spooky’s three-layer architecture — context, blueprint, and render — means every asset stays on-brand because your brand DNA is baked into every pixel, not just templated on top.”

Stage 5: Identification

The market is completely exhausted. Claims and mechanisms are both worn out. Prospects are deeply skeptical of all promises. The winning strategy shifts from what the product does to who the prospect is. Connect with their identity, values, aspirations, and community. Sell belonging, not features.

Strategy: Speak to identity. “Built for founders who’d rather spend their time building product than wrestling with design tools.”

How to use this

Before writing any marketing copy, determine which stage the market is in for the specific claim you’re making. Most SaaS markets are in stage 3-5. For Spooky, the AI website builder space is likely stage 3-4, meaning mechanism and proof are critical differentiators.

When writing copy, don’t default to stage 1 claims in a stage 4 market. Match the sophistication of your audience.