Given the current economic crisis, it is more important than ever to have a clearly defined target market. Nobody can afford to target everyone. By targeting a niche market, small businesses can effectively compete with large companies. Many companies say that they are addressed to anyone who is interested in their services. Some say they target small business owners, homeowners or housewives. All these goals are too general.
Small businesses reduce their target markets to better reach their key customers. Customers who use their products the most and spend the most money. The best way to reach these people is to study their different characteristics. This can best be achieved through observation and market research. Shrinking a target market has some advantages, including reducing the effectiveness of competitive strategies. You can also better target your advertising efforts. Below are a few ways to narrow down your target market.
Recognize that you cannot sell to everyone
- The truth is, you cannot sell to anyone, especially if you are a small business with limited time and resources for marketing and advertising. This means you will be much more successful if you choose a specific group of people to focus all your efforts. Reducing your ability to focus on a limited target market means you can get to know them better and shape your marketing, products, services, and business processes according to your needs. This will be more effective than trying to meet the different needs of everyone, and this usually leads to higher revenues and a stronger brand.
Discover your competition.
- Who are your target competitors? Who are your current customers? Do not go to the same market. You can find a niche market that they neglect.
Analyze your product / service
- Write a list of all features of your product or service. Next to each feature, state the benefits that it offers (and the benefits of these benefits. A professional image will attract more customers because they consider the company to be professional and trustworthy. So the benefit of high-quality design is getting more customers and making more money. Once you have registered your benefits, create a list of people who have a need that meets your benefit. For example, a graphic designer could target interested companies to increase their customer base. Although it is still too general, you now have a starting point.
Think of the niche markets
- Today we live in the niche world. For example, we are no longer prisoners of television hours. We can see what we want from almost anywhere in the world; which means that each person can enjoy a unique visual experience. The Web is fantastic for delivering personalized products and services and eliminates many of the recent distribution issues. These are the factors that make it a more effective strategy to be a big fish in a small pond than vice versa. It will be easier to build your reputation and receive referrals. You will also find that you get more out of your marketing efforts.