I know this may come as a shock to you, but it’s true. You cannot hope to market your products or services to everyone, even if you think everyone needs them.
I’m not saying you can’t be successful doing this. What I’m saying is you really do limit your potential by not focusing on select groups of people or businesses.
By focusing on one or more niches, you’re able to connect with these people at a much higher level, and consequently you automatically gain more business.
I’m sure you’ve heard people say things like, “This person really connects with me, they really understand my business.” This is what happens when you choose to market to specific groups.
What’s also important to understand is that certain groups of people or businesses are more likely to want and need your products and services more than others. More importantly your niche must focus on the groups who can afford your offering. There’s no point in targeting groups who want and need your products or services if many of them can’t afford to buy them!
“But if I target only specific groups, won’t that limit my market and reduce my chances of finding new business?”
That’s a common question I’m often asked. Of course you reduce the total pool of potential customers, but to succeed in today’s competitive market place you need to concentrate your marketing on a smaller number of well-chosen segments or niches into which you pour all your resources.
Because you are targeting a smaller volume of people, the same amount of money you were previously using to acquire customers, is spread across a smaller number, and therefore you have more to spend on each prospect. This alone makes you more successful.
So, in a nutshell your niche market is the segment(s) that represents your best chance of getting a good return for your marketing efforts. These niches are critical to you.
Of course, if you focus on a smaller group you may not get the business of other people or businesses outside the target group. But in reality what happens is you increase the amount of business you receive from your target niche.
This is because you are specifically meeting the needs and requirements of your chosen niche. You’re saying to them that, ‘you are THE company that knows about their situation.’ No other company specifically meets their needs in this way, and therefore you are the logical company to turn to.
For example, let’s say you’re a start-up business and you need an accountant. Your first choice is to look in an online directory under the ‘Accountant’ category where you find a number of possibilities. The first one reads…
‘ABC Chartered Accountants. Tax preparation, auditing, bookkeeping, payroll services, help for start-ups, management accounts, and so one.’
The second ad reads…
‘XYZ Chartered Accountants. Specialising in helping Start-Ups get their businesses running quickly, profitably and effectively.’
As a Start-Up, which firm of accountants are you likely to choose? The answer is obviously the second, but it serves as a good example to show how effective this strategy is.
If you can create this bond between you and your niche market(s) you’ll grow your business to unprecedented levels. That’s the power of niche marketing. By concentrating on specific groups, you can achieve very high market shares in that particular category because people automatically come to you.
You’ll ‘own’ the market. You are viewed as the only choice because your product or service is ‘designed’ to solve the specific problems of those people.
Not having a target market is perhaps the biggest mistake that businesses make!